On June 11, South Korean consultants acknowledged by native media that cryptocurrencies are a “poor alternative” of safe-haven belongings through t
On June 11, South Korean consultants acknowledged by native media that cryptocurrencies are a “poor alternative” of safe-haven belongings through the COVID-19 pandemic.
In response to The Scoop, Professor Hong Ki-hoon of Hongik College acknowledged that crypto-assets like Bitcoin (BTC) shouldn’t be thought-about as “safe-haven belongings,” on the stage of Gold, {dollars}, and even the U.S. Treasury bonds. He doesn’t deny, nevertheless, that volatility within the monetary markets is inflicting extra money to build up within the crypto market.
Cryptos aren’t secure from the Pandemic
Hong, from the Enterprise Administration division of Hongik College, says:
“To be a safe-haven, two situations should be met. First, the volatility of the asset’s worth should be low, and second, when market volatility is anticipated to extend, the worth ought to rise. Subsequently, cryptos don’t meet with the situations.”
The professor argues the next concerning the explanations behind the rise in crypto quantity through the coronavirus outbreak:
“The explanation for the rise within the quantity after the markets crashed was that the spirit of investing in greater volatility labored to compensate for the depreciated asset worth.”
Considerations in the direction of lack of regulation in South Korea
The article additionally raised issues concerning “market manipulation”. It states that the crypto setting just isn’t sufficiently regulated inside the nation. They consider the market’s present recognition doesn’t alleviate the issues of buyers who hesitate in shopping for cryptocurrencies.
However, an nameless funding skilled quoted by The Scoop revealed:
“Particular person buyers are sometimes unable to handle the dangers of shares correctly, however it’s just about unimaginable to gauge the danger elements of cryptocurrencies. It’s a must to perceive earlier than investing absolutely.”
South Korea’s Ministry of Economic system and Finance mentioned on Could 27 that they’re getting ready to amend the nation’s Revenue Tax Regulation — a transfer which might have an effect on crypto profitability inside the nation.