[Bitcoin Now] Below 40 Million Won Again... UBS Warns "Could Crash Due to Regulations"

Bill Proposed to Pay Salaries in Bitcoin in Argentina
Tesla's Bitcoin Investment Loss Estimated at $100 Million

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen below 40 million won once again, and global investment bank UBS has warned that cryptocurrency prices could plummet due to regulations in various countries. Meanwhile, a bill has been proposed in Argentina to allow salaries to be paid in Bitcoin.

According to the domestic cryptocurrency exchange Upbit, as of 2:37 PM on the 8th, Bitcoin was recorded at 39.2 million won, down 1.35% from the previous day. Since the beginning of this month, Bitcoin prices have struggled to move beyond around 40 million won. The highest price recorded this month was 41.64 million won, and the lowest was 38.28 million won.

UBS has forecasted a sharp decline in cryptocurrency prices. On the 7th (local time), according to the cryptocurrency specialized foreign media Daily Hodl, UBS’s overseas asset management team stated in a report that “it is being proven that countries can regulate the cryptocurrency market,” and explained that “regulations or changes in investor perception could collapse the bubble-ridden cryptocurrency market.” UBS cited China, which has recently been cracking down on cryptocurrency mining companies, as an example of regulation. When the People's Bank of China announced on the 21st of last month that it would track funds related to cryptocurrency exchanges, Bitcoin plunged 10.63%.

In the Argentine Congress, a bill has been proposed to allow workers to receive their salaries in Bitcoin. According to cryptocurrency specialized foreign media Coindesk on the 7th, Jos? Luis Ram?n, a member of the Mendoza Province in Argentina, said, “If the bill passes, workers can choose to receive all or part of their salary in cryptocurrency,” adding, “Argentine workers working abroad will not need to exchange foreign currency into the local currency peso after returning home.” Currently, Argentina is suffering from high inflation, with a cumulative annual inflation rate of 21.5%.

Meanwhile, there are predictions that Tesla may have suffered losses of about 100 million dollars (approximately 114.4 billion won) due to the Bitcoin crash. On the 6th, Daily Hodl predicted that Tesla would record cryptocurrency investment losses of 25 million to 100 million dollars in its books for the second quarter of this year. Daily Hodl explained, “Tesla accounts for cryptocurrencies as intangible assets on its books,” and “according to accounting rules, if the value of Bitcoin falls below a certain level, it must be reflected in the financial statements.” Earlier, Tesla disclosed on February 9 that it had invested 1.5 billion dollars in Bitcoin.