Bitcoin Rally
Bitcoin price, which doesn’t have a ceiling, continues to show a steep rise, surpassing 7 million won (US$6,189). Considering the fact that bitcoin was traded at around 1.2 million won (US$1,061) early this year, the rate of its price hikes reaches 500 percent.
As the rally continues despite the fact that governments, including China, impose regulations on digital money, some even say that bitcoin can usher in an era of US$10,000 (11.31 million won).
According to domestic virtual money trader Bitthumb on October 23, bitcoin was traded at around 7 million won (US$6,189) on the same day without large price jumps after its price went up to 7.19 million won (US$6,357) on the previous day, breaking the 7 million won (US$6,189) mark for the first time.
Digital money information provider CoinDesk also said the price of bitcoin stood at US$6,000 (6.79 million won) per coin on the same day. The figure fell short US$6,000 (6.79 million won) after recording at US$6,148.82 (6.95 million won) on the 21st (local time) but it surpassed US$6,000 (6.79 million won) on the 23rd again. Bitcoin showed a whopping 62 percent rise in a month since US$3,700 (4.18 million won) on September 22.
Experts say that the price of bitcoin is continuously on the increase due to expectations that it would undergo another split at the end of this month. The so-called “hard fork” is the process that splits the existing virtual currency to create a new currency. When bitcoin hard fork occurs, the split results in two bitcoins.
Through a hard fork, “Bitcoin Gold” will be created on the 25th and it will be actually traded on November 1. Those who own existing bitcoins will get Bitcoin Gold as well. In August, bitcoin was split into “Bitcoin Cash” through a hard fork. Those who own bitcoins also gained Bitcoin Cash at that time, and its price also showed a rising tendency.
As bitcoin continues to maintain its sweeping upturn, all eyes are on how much each bitcoin will be worth. With growing expectations, some even say that the price of bitcoin will surpass US$10,000 (11.31 million won) soon.
According to a survey conducted by CNBC online on the 20th, 49 percent of 23,000 people who voted said bitcoin is heading to over US$10,000 (11.31 million won). About 16 percent of respondents said they see bitcoin leveling out around US$6,000 to US$8,000 (6.79 million won to 9.05 million won). On the other hand, 35 percent of respondents said there is a bubble in bitcoin and “you'll pay the price” for investing in bitcoin.
In a recent interview with CNBC, former Fortress cryptocurrency hedge-fund manager Michael Novogratz said, “I will not be surprised even when bitcoin heads to US$10,000 (11.31 million won) in the next six to 10 months.”
In contrast, others say that it is meaningless to forecast the value of bitcoin. They believe that it is impossible to predict the price of digital currency, which has a new concept, with methods of existing financial assets.
During an interview with Business Insider, Richard Turnill, global chief investment strategist at BlackRock, said, “There is no way to evaluate the fair value of bitcoin or any cryptocurrency. Investors say (bitcoin) prices have risen and are therefore going to continue to rise over time but there is no inherent right or wrong price for bitcoin.”
He also showed concerns over the recent price increases, saying, “Cryptocurrencies show many characteristics of a bubble right now.”
In the meantime, the blockchain industry expressed grave concerns over the fact that the Financial Services Commission has recently said it will prohibit domestic companies and startups from participating in all forms of cryptocurrency initial coin offerings (ICOs).
The Korea Blockchain Industry Promotion Association (KBIPA) held an urgent press conference for the government’s ban on cryptocurrency ICOs on the 23rd. It said, “In principle, we are against the government’s latest move.”
The KBIPA said, “The South Korea’s ban on cryptocurrency ICOs, which was only imposed in China as well going against the global trend and stream will significantly hamper blockchain technology and industry development.”
It also added, “Before imposing regulations on specific areas in the blockchain industry, the government should closely go into inappropriate circumstances that can be occurred in the process of establishing clear definition of blockchain, cryptocurrency and ICO. After that, it should impose proper regulations to promote the blockchain industry and protect investors and participants at the same time.”
However, the association say the government should strengthen regulations to prevent illegal and improper cases that were recently discovered in the process of cryptocurrency issuance.