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The first ETF in North America to appear successfully
Addition to the business of high-tech companies and financial institutions
Evaluation changes as a means of payment of funds
‘It’s just a tulip frenzy caused by excess fluidity’
Demand reaches 21 million emission limits
Prices skyrocket with no real use value
Cadastral map of FT ‘Investment against climate change’
Bitcoin Hankyoreh Materials
As Bitcoin’s market capitalization exceeds one trillion dollars, it is assessed that it is becoming one of the investment assets. On the other hand, there are still voices that warn that it is only a bubble caused by excess liquidity. According to data from CoinDesk, a US cryptocurrency information company, the price of bitcoin on the afternoon of the 20th (local time) is trading around $ 56,500 (62.5 million won) per coin. The emission limit of Bitcoin is 21 million and the market capitalization, taking into account the amount of mining, reaches $ 1.5 trillion (1160 trillion won). Bitcoin first surpassed the $ 1 trillion market cap the day before. It surpassed Tesla’s market capitalization ($ 749.9 billion), revealing that it had invested $ 1.5 billion in Bitcoin. There are only four companies on the US New York Stock Exchange with market capitalizations greater than $ 1 trillion, including Apple ($ 2.18 trillion). At the national trading company Upbit, Bitcoin is trading at 65 million won a piece at 4 p.m. on the 21st.
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In particular, it is assessed that the first listed Bitcoin index fund (ETF) in North America was successfully launched in Toronto, Canada on the 18th, and was recognized as an investment asset in the conventional system. As high-tech companies like Tesla and financial institutions like PayPal and New York Melon Bank also join the crypto business, Bitcoin’s status as a payment method is expected to rise. To overcome the Corona 19 crisis last year, liquidity flowed into the cryptocurrency market by greatly increasing the issuance of currency by the US central bank. As additional tax expenditures for economic recovery are inevitable this year, analysts say investors who are concerned about a drop in the value of the dollar and inflation will buy bitcoin instead of gold as a risk defense tool. The actual price of bitcoin rose to $ 10,000 in June from $ 4,900 each in March of last year when the Corona 19 pandemic began, and surpassed $ 40,000 in December. On the other hand, the international price of gold hit a record $ 2,050 per troy ounce in August last year, then gradually lost its strength and fell back to the current range of $ 1,770. “Bitcoin may be a better bet than that. gold, “said Jeffrey Gundlock, CEO of Doubleline Capital, who has long advocated for gold bullion. On the other hand, it is argued that the price of bitcoin has risen regardless of whether the dollar has weakened or not, making it difficult to consider it as a safe asset like gold, an alternative currency. Although they have little practical value in use, they believe that prices are rising rapidly due to supply and demand. Bitcoin is in limited supply and cannot be printed at will like the dollar, so when demand is rushing, the price has to go up. The weakness of Bitcoin is that the volatility of prices reaches 5 to 10 times that of its main assets. However, it is noted that these skeptics are less realistic in that they have always been bubbling when bitcoin is $ 1 in 2011 or $ 200 in 2013 compared to the ’17th century Dutch tulip frenzy’. He noted that investing in bitcoins is counteracting climate change. A lot of electricity is consumed in mining operations that make blocks for the transaction details on the grid and find the order. Organizations that take environment, society and governance (ESG) as their main investment criteria are critical of companies that buy bitcoins on a large scale like Tesla. The biggest risk factor for Bitcoin is government regulation. US Treasury Secretary Janet Yellen said in an interview with the US Economic Broadcasting Corporation (CNBC) on the 18th, “It is important to regulate the institutions that handle bitcoin, a speculative asset, and maintain accountability.” . Senior Reporter Han Kwang-deok [email protected]
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