[Bitcoin Now] "Evolved" vs "Bubble"... Institutions in Heated Debate

Korean Paycoin Soars Up to 2000%

On the 17th, when the cryptocurrency 'Bitcoin' price surpassed $50,000 for the first time in history, the Bitcoin price was displayed on a large electronic board set up at the Upbit Lounge in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has surpassed 58 million KRW, eliciting mixed reactions. Meanwhile, Paycoin surged approximately 2011.11% following news that payments with Bitcoin are now possible.

According to the domestic cryptocurrency exchange Upbit, as of 11:30 AM on the 18th, Bitcoin recorded 57,809,000 KRW, up about 0.6% from the previous day. At 6:37 AM that day, it rose to 58,120,000 KRW, setting a new record high once again.

Regarding this, the world's largest asset management firm BlackRock expressed a positive stance. On the 17th (local time), according to the US economic media CNBC, Rick Rieder, BlackRock's Global Chief Investment Officer (CIO) for fixed income, explained, "In a situation with high volatility and abundant liquidity, it is reasonable for people to diversify assets to store value," adding, "Bitcoin's technology and regulation have evolved enough that many investors should include it in their portfolios, which is why the price is rising."

On the other hand, the largest US investment bank JP Morgan showed the opposite reaction. On the 16th (local time), according to the US economic media Bloomberg, JP Morgan claimed in a report that Bitcoin cannot maintain its current price due to extreme volatility. Nikolaos Panigirtzoglou, JP Morgan's investment strategist, analyzed, "Despite an inflow of about 11 billion USD (approximately 12.155 trillion KRW) from institutional investors, volatility remains high," adding, "This is because speculative buying is influencing the market."

Meanwhile, the domestic electronic payment company Danal's issued cryptocurrency 'Paycoin' also surged sharply. It was 198 KRW (closing price) on the 16th but skyrocketed to 4,180 KRW on the 17th, an increase of about 2011.11%. This appears to be due to Danal's subsidiary Danal Fintech announcing the commercialization of instant Bitcoin payment services on the Paycoin application (app) for the first time in Korea. Paycoin's affiliated merchants are known to total around 60,000. At the same time on that day, Paycoin recorded 3,000 KRW, down about 15.4% from the previous day.