[Bitcoin Now] Surpasses 71.5 Million Won... New All-Time High Record

Positive Impact of PayPal Virtual Currency Payment Introduction

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has surpassed 71.5 million KRW, setting a new all-time high. The news that overseas payment company PayPal has started cryptocurrency payments appears to have had a positive impact.

According to the domestic cryptocurrency exchange Upbit, as of 11:54 a.m. on the 31st, the price of Bitcoin reached an all-time high of 71.6 million KRW. This marks a recovery to the 71 million KRW range for the first time in two weeks since the 14th, followed by a new all-time high. As of 2:50 p.m., it showed a slight decline to 70.45 million KRW.

The news of PayPal launching a cryptocurrency payment service seems to have acted as a positive factor. According to the US economic media CNBC on the 30th (local time), PayPal launched a payment system called ‘Checkout with Crypto’ that allows Bitcoin, Ethereum, Bitcoin Cash, and Litecoin to be used in actual transactions. If cryptocurrencies are stored in a PayPal-exclusive virtual wallet, they are automatically converted into fiat currency at the time of payment. PayPal stated, “Currently, the service is only available in the United States, but it will be expanded to 29 million merchants worldwide in the future.”

This development draws attention to whether cryptocurrencies will be widely recognized as a payment method in the future. Until now, cryptocurrencies have been criticized as unsuitable for payment methods due to their high volatility. On the 22nd, Jerome Powell, Chairman of the Federal Reserve (Fed), pointed out, “Bitcoin is not useful due to its high volatility.” Dan Schulman, CEO of PayPal, said, “The launch of this service will be a turning point for cryptocurrencies to be recognized as a legitimate payment method.”

Meanwhile, Goldman Sachs evaluated Bitcoin as an asset that can coexist with gold. On the 29th, Jeff Currie, Global Head of Commodity Research at Goldman Sachs, said in an interview with CNBC, “The trading trends of gold and Bitcoin are different, so they can complement each other,” adding, “Gold is treated as a traditional safe asset, and Bitcoin can be separated as a hedge against inflation loss risk.” Earlier, Currie had expressed doubts about cryptocurrencies in January, saying, “Bitcoin’s volatility is too high to predict its price.”