Elon Musk, “Bitcoin price seems high”

The value of bitcoin, a leading cryptocurrency player, continues to rise in high prices in domestic transactions. According to the cryptocurrency exchange Upbit on the 20th, at 10:17 am on the day, 1 bitcoin was traded at 65092,000 won. Currently, the high price is 6,5235,000 won. At Upbit, Bitcoin exceeded 60 million won before midnight the night before, and it is gradually increasing its peak afterwards. It was the wave of the remarks of Tesla chairman Elon Musk. However, on the 20th, Chairman Elon Musk expressed an opinion that the price of the cryptocurrency Bitcoin and Ethereum seems to be high. It expressed concern about overheating of Bitcoin investment.

Musk commented on the Twitter post of Peter Seef, a leading bitcoin skeptics and gold investment advocate, Reuters reported on the 20th (local time). Musk said, “Gold is better than bitcoin and conventional cash,” Musk said. “Money is just data that avoids the inconvenience of bartering. Even so, the price of Bitcoin and Ethereum seems to be high.” said. Reuters noted that “Musk said this when the market capitalization of bitcoin exceeded $1 trillion (about 1,100 trillion won),” said Insider, an economic media outlet, “Musk admits that the price of Bitcoin and Ethereum seems to be high. I did.” Bitcoin has soared 350% over the past six months as investors have been rushing to buy it, and it has risen 64% only in February, and the market cap exceeded $1 trillion for the first time on the 19th. Musk also ignited this bitcoin craze several times. He publicly announced that he was a “Bitcoin supporter” on the 2nd, and Tesla sparked a rally by publicizing the purchase of $1.5 billion worth of Bitcoin on the 8th.

Musk also made Tesla’s decision to invest in bitcoin on the 19th, saying, “holding bitcoin is less stupid than cash. When the real interest rate of the legal currency is negative, only idiots (such as bitcoin) will not look elsewhere. Defended. On the other hand, there is an interpretation that the abnormal price increase of Bitcoin is due to fear of inflation (inflation). Concerns about inflation are heightening as the world has implemented an ultra-low interest rate policy with Corona 19.

The most important thing in the era of inflation is how to hedge (avoid) inflation. The most classic inflation hedge is to invest in gold. This is because gold is not affected by inflation. Bitcoin is also not affected by inflation. For this reason, it is also called’digital gold’.

However,’Bubbleon’ also exists. Bitcoin pessimist Nouriel Rubini, a professor at New York University, recently argued that “gold, price-linked government bonds, commodities, real estate, and even stocks are reasonable as inflation hedges, but Bitcoin has not yet been proven.” Previously, the representative inflation hedge asset is gold. However, gold prices are on the decline. The international gold price is $1775 per ounce as of the 19th, the lowest in eight months. Meanwhile, the rising price of bitcoin means that investors have chosen bitcoin instead of gold. In fact, Blackrock, the world’s largest asset manager, has already chosen bitcoin instead of gold as an inflation hedge. Bitcoin has another advantage. Unlike gold, it can be used as a payment method. American electric car maker Tesla, easy payment service PayPal, and credit card company Mastercard recognized bitcoin as a payment method.