The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Wed, August 17, 2022 | 14:16
Bitcoin becomes preferred currency
Posted : 2017-11-15 21:33
Updated : 2017-11-15 21:33
Print Preview
Font Size Up
Font Size Down
By Shim Jae-yun

"I Earned 300 Million Won ($270,000) in Three Months With Crypto Currency" is the title of a recently published book written by financial expert Bin Hyun-woo about Bitcoin. The book has stirred public interest in the new digital currency, which has been surrounded by controversy because of its valuation and future role in the global financial market.

Despite the recent swing, the value of a Bitcoin has been increasing phenomenally over the past several months. Its value, which lingered at only 10 won in early 2009, reached 7,500,000 won ($6,590) as of Tuesday. Bitcoin issuance in the next 120 years is limited to 21 million units, making it highly valuable. The brilliant growth of the crypto currency has been possible thanks to the new blockchain technology.

Blockchain has come under the spotlight during this year's Davos Forum in Switzerland as one of the key technologies that will lead the Fourth Industrial Revolution. Based on cryptology and distribution, the technology enables safe data transmission and does not need a guarantee from a third person, thus eliminating the middleman from any and all transactions. In addition, with real-time sharing of transaction data, it reduces the possibilities of hacking to almost nothing.

Following the global financial crisis, there has been skepticism over the safety of currencies guaranteed by the banks. The United States, Japan and Europe implemented quantitative easing but failed to contain the confusion in the money markets. Against this backdrop, Bitcoin emerged as an alternative currency, invented in 2009 by a Japanese man ― or group of people ― known by the pseudonym Saroshi Nakamoto.

Digital currency trading has been increasing rapidly. In Korea, the largest trading firm, Bithumb, has seen 2.5 trillion won in daily trading of the crypto currency, surpassing that of the daily trading of the main stock market at 2.2 trillion won.

Goldman Sachs began efforts to lead the new digital currency market by indicating the necessity of an exchange. The Chicago Merchandise Exchange announced a plan to establish a futures exchange within the year. During a financial conference held in London on Sept. 29, International Monetary Fund President Christine Lagarde said Bitcoin will replace the role of existing currencies and will soon be preferred by people from all walks of life.

But critics warn against the possible collapse of the crypto currency. Jamie Dimon, chairman of JP Morgan Chase, said Bitcoin is a fraud and will evaporate soon. Amid the boom of speculative investment into crypto currencies, many people in Korea have become vulnerable to fraud. Lagarde also pointed out that the crypto currency is still dangerous and its basic technology has problems.

But she noted such technical problems can improve over time. Microsoft's Bill Gates also supports Bitcoin: "Bitcoin is not stoppable." With this belief, Microsoft introduced the Coco Framework as a blockchain-based platform.

The rise of the crypto currency will likely have a significant impact on the entire society. A cashless society is already taking shape. As coins and bank notes rapidly disappear in transactions, central banks will have to take measures to cope with the change.

The central bank will likely suffer decreasing profits as financial transactions depend less on its currency issuance. It will also see a major change in its role in adjusting interest rates. As Bitcoin becomes widely adopted, the government needs to come up with new policies, including the legalization of the new digital currency. The country needs to lead the new global financial order by making the best of the crypto currency. However, regulation-oriented policies will not help achieve this goal.

 
LG
  • Korean builders desperate for foreign construction workers
  • 2 Buddhist monks assault solo protester
  • Western, traditional Korean medicine doctors clash over terminology
  • Korea grapples with excess rice
  • Gates calls on Korea to play greater role in fight against COVID-19 pandemic
  • Instructors furious over scaling down of gugak in music teacher education
  • Ruling party chief accuses president of verbal abuse
  • Concerns grow over Korea's pension fund
  • Do Kwon says he will cooperate with investigation
  • NPS reduces Samsung shares, while increasing TSMC stocks
  • Interactive News
  • With tough love,
  • 'Santa dogs' help rebuild burnt forests in Andong
  • 'Santa dogs' help rebuild burnt forests in Andong
  • A tale of natural wine
    • Girls' Generation music video director apologizes for copying design Girls' Generation music video director apologizes for copying design
    • 2PM's Lee Jun-ho proves versatility at 'Before Midnight' concert 2PM's Lee Jun-ho proves versatility at 'Before Midnight' concert
    • Star directors' new series to A-listers' small screen comeback expected in coming weeks Star directors' new series to A-listers' small screen comeback expected in coming weeks
    • NewJeans sets record with debut album NewJeans sets record with debut album
    • 'Confidential Assignment 2' has even more action, humor 'Confidential Assignment 2' has even more action, humor
    DARKROOM
    • Ice is melting, land is burning

      Ice is melting, land is burning

    • Tottenham 6-3 Team K League

      Tottenham 6-3 Team K League

    • Afghanistan earthquake killed more than 1,000

      Afghanistan earthquake killed more than 1,000

    • Divided America reacts to overturn of Roe vs. Wade

      Divided America reacts to overturn of Roe vs. Wade

    • Namaste: Yogis to celebrate International Yoga Day

      Namaste: Yogis to celebrate International Yoga Day

    The Korea Times
    CEO & Publisher : Oh Young-jin
    Digital News Email : webmaster@koreatimes.co.kr
    Tel : 02-724-2114
    Online newspaper registration No : 서울,아52844
    Date of registration : 2020.02.05
    Masthead : The Korea Times
    Copyright © koreatimes.co.kr. All rights reserved.
    • About Us
    • Introduction
    • History
    • Location
    • Media Kit
    • Contact Us
    • Products & Service
    • Subscribe
    • E-paper
    • Mobile Service
    • RSS Service
    • Content Sales
    • Policy
    • Privacy Statement
    • Terms of Service
    • 고충처리인
    • Youth Protection Policy
    • Code of Ethics
    • Copyright Policy
    • Family Site
    • Hankook Ilbo
    • Dongwha Group