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As of the 5th, while the market price of Bitcoin, a cryptocurrency leader, exceeded 36 million won, there is a message warning the danger that it went up to 30 million won in 2017 and then plunged to 3 million won.
However, blockchain experts predicted that the market price of bitcoin will go up to 100 million won this year, suggesting a different outlook from some concerns, such as Wall Street, which represents traditional finance.
The current bull market is a large inflow of funds led by institutions, and the recognition as a transparent investment asset has stabilized amid a rapid increase in liquidity due to economic remedies aggravated by the corona pandemic, and the price of bitcoin (1BTC) is 50 million to 100 million won. This is because there are a series of simulation reports that it will rise.
Recognized as a cryptocurrency asset… different from Ripple
Park Seong-joon, head of the Dongguk University Blockchain Center, said in a call with E-Daily, “Bitcoin’s rising trend is natural. It plays a role as a standard currency like gold in the digital world,” he said. “Until 2017 and 2018, I was dubious about cryptocurrency, but now the perception is stabilizing. Cryptocurrency is also being recognized as an asset.”
He added, “As PayPal supports bitcoin trading, the advantages of being easily accessible to the general public, and the scarcity that supply cannot keep up with demand because it has to be mined like gold is also leading the bitcoin bull market.”
Park said that the cases of Ripple (XRP) and Bitcoin, whose prices fell after being sued by the Securities and Exchange Commission (SEC) for violation of the Federal Securities Law, were different. “The US, a key currency country, doesn’t like cryptocurrencies like Bitcoin or Ethereum, but it has regulations that can do everything except not to do it,” he said. “The SEC regulation on Ripple sees XRP as a stock. Rather, it can be understood that it will impede the market expansion.”
The SEC regards XRP as a securities, unlike Bitcoin, as Ripple executives sold XRP and earned private profits, and most of Ripple’s revenue was from XRP sales rather than services.
Bitcoin 100 million, Ethereum 5 million won
Choi Hwa-in, an advisor to the Financial Supervisory Service Blockchain Development Forum, told E-Daily, “By the end of this year, Bitcoin is expected to reach 100 million won and Ethereum will reach 5 million won.” According to Bithumb, a virtual asset (cryptocurrency) exchange, as of 9:40 am on the 5th, Ethereum is trading at 1245,000 won and Bitcoin is trading at 36849,000 won.
Commissioner Choi cited the characteristics of cryptocurrency, which is more transparent and accessible than gold, as an investment product to make up for the real decline in the value of money due to quantitative easing.
He said, “With the coronavirus outbreak, the US imprinted the dollar enormously, reducing the real value of money, and people are looking for new investments to make up for it, so they are focusing on investing in real estate, stocks, and cryptocurrency.” “Although real estate is on the rise, raw materials that have become unstable in the global value chain have lost their attractiveness as investment products, and gold has risen enough, and the market is opaque.” “However, cryptocurrency is easy to access and all information is transparent in real time. It was revealed that the financial asset itself is the target, and the bull market will continue.”
Commissioner Choi Hwa-in said, “Ethereum is also expected to rise. Since then, cryptocurrencies (altcoins) have different purposes, and cryptocurrencies such as Ripple are also regulated,” he said. “There are a lot of people investing in Ripple in Korea. I think that investment in cryptocurrency has a limit to its purpose.”
Commissioner Choi also said that the domestic financial authorities are unable to keep up with the global trend of digital currency. He said, “The special money law (law on reporting and use of specific financial transaction information) in effect in March made it impossible to share the order book, so that only a few large exchanges such as Bithumb and Upbit make money. He pointed out that Huobi Korea and Aprobit, which have been increasing transaction liquidity by sharing transaction books with overseas virtual asset exchanges, are bound to be limited.”
For this reason, the incentive for Naver, which runs a virtual asset exchange in Japan, to open an exchange in Korea, has disappeared.
Bitcoin owned by the exchange is decreasing..will challenge 100 million
Seo-joon Kim, CEO of Hashed, a global blockchain investment company based in Korea, also expected a solid and sustained rise in Bitcoin this year. In the ‘2021 Blockchain & Cryptocurrency Market Forecast Post’ posted on the Hashed blog on the 3rd, CEO Kim said, “In order for the bitcoin price to go down, bitcoins on the exchange must be sold, but there is no bitcoin sale on the exchange. “This is getting worse,” he said. “Because there are more people who want to buy than those who want to sell.”
He predicted and hit it at the end of 2019, “Bitcoin will hit a record high next year.” CEO Kim said, “From February 2020, institutional investors began to withdraw bitcoins out of the exchange in large quantities for the purpose of long-term holding of bitcoins. 100 million challenges are expected.” According to Cryptoquant, a cryptocurrency market analyst firm, the “total amount of bitcoins in all exchanges” has decreased from about 2.96 million at the beginning of 2020 to about 2.37 million at present.