[Bitcoin Now] New Record High Again... Approaching 22 Million Won

Record Highs Broken Multiple Times Within a Week This Year

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[Asia Economy Reporter Minwoo Lee] The price of Bitcoin, the leading virtual currency (cryptocurrency), has reached a new all-time high. It is rapidly rising, approaching 22 million KRW per coin.

According to Upbit, a domestic cryptocurrency exchange, Bitcoin's price recorded 21.49 million KRW around noon on the 1st. This is the highest price since January 11, 2018. It set a new record just a week after surpassing this year's highest price of 21.46 million KRW on the 25th of last month. After dropping to 18.5 million KRW on the 27th of last month, it sharply rose within four days.

Recently, a steep upward trend has been consistently observed. It has risen about 30% just this month. Compared to the closing price of 8.3 million KRW on January 1, it surged approximately 260%. This contrasts with the atmosphere since last September when it rarely exceeded the $12,000 mark.

Analysts suggest that Bitcoin has emerged as an alternative as the value of currency declined due to economic recession caused by the novel coronavirus disease (COVID-19) and massive liquidity supplied by governments worldwide. It is replacing gold, a traditional safe-haven asset. Tyler Winklevoss, founder of the cryptocurrency exchange Gemini, emphasized, "Bitcoin is the 'second gold'" and predicted, "It will rise to $500,000 per coin in the future." He and his brother Cameron Winklevoss are considered Bitcoin billionaires.

There are also concerns. Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund and known as the "godfather of hedge funds," pointed out, "Bitcoin's volatility is too high, making it unsuitable for storing assets."