Cryptocurrency trading is like 'blind investment': Hyundai Card chief Chung

Hyundai Card Vice Chairman Chung Tae-young / Courtesy of Hyundai Card

By Anna J. Park

Hyundai Card Vice Chairman Chung Tae-young recently revealed his take on cryptocurrency trading, saying it is more like a “blind investment” due to its fragile relevance to any real references.

In a Facebook posting uploaded Thursday, Chung said he's been asked frequently about his view on the matter and would like to share his opinion.

First off, Chung said he cannot agree with the general view that cryptocurrencies are unstable because they're not issued by central government authorities. He argued that just as ore, oil and crops could be an object of investment even though they're not centrally issued or centrally controlled, cryptocurrencies can still have relevance as an object of investment.

“The issue here is not utility as a payment system, but suitability as an object of investment,” his posting read.

He also disagreed with the view that cryptocurrencies are unstable because they're not real entities. He explained that there are many “concept-based” investment objects, such as index funds, foreign exchanges and options.

The fundamental reason Chung sees as the core of people's distrust of digital currencies is the very fragile nature of the cryptocurrency system.

“The price of gold cannot go its own way, since it is compared to the prices of other precious metals like silver and copper. The dollar is also placed under the same yardstick as other currencies. Stock prices fluctuate, yet they have a common ground of valuation. (…) In this regard, cryptocurrencies have a weak relevance in terms of their utility, reference and valuation, without a proper analysis to explain its price fluctuation,” Chung wrote, calling it more like a “blind investment.”

Yet he ended his posting saying that his take could be wrong. “Of course, Elon Musk, a man of much greater caliber than I, has different ideas about the matter.”