Hot Potato: Bitcoin Purchases

    written by 20305 Kim Min Chae

Bitcoin’s surge has been continuing since last fall. This is because money that wasn’t able to find an investment destination at an ultra-low interest rate flowed into cryptocurrency due to the COVID-19 crisis.

The current situation of Bitcoin

The decisive factors for individuals to invest in Bitcoins was that famous companies such as PayPal, Tesla, and Morgan Stanley bought coins or entered related businesses. Individual investors are relieved that it is “at least not a fraud.”

Bitcoin’s domestic price surpassed 81 million won and the U.S. market price surpassed 64,000 dollars. It was record breaking again. 

It has doubled this year and jumped more than 10 times in a year. Inside and outside the industry, there are simultaneous claims that “the real rise is from now on” and warnings that “it is almost at the top.”

Warnings

However, Janet Yellen and Eun Seong Su, the head of U.S and Korea financial services commission expressed concerns about cryptocurrency such as Bitcoin due the steep rise of Bitcoin. After these concerns were expressed, the purchases of Bitcoins were slowed down. In other words, Bitcoin prices, which were rising faster than 80 million won, also fell to the 70 million won range, as Korean and U.S. central bank governors simultaneously warned of the dangers of bitcoin investment. 

The reason why the price of bitcoin suddenly dropped when the bitcoin boom occurred a few years ago was also because of the government’s regulations. As such, cryptocurrency, bitcoin is a new means of investment, it is new and unfamiliar to many people. 

Cryptocurrency is a relatively new concept that everyone fears but is curious about. People should be able to invest for their own reasons, not because everyone else is doing it. They can choose whether or not to make safe investments.