Amazon "To Build Modern, Fast, and Affordable Payment Technology"
Bitcoin Gained Attention as an Inflation Hedge but Plummeted Amid Rising Prices
[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has surpassed 40 million KRW. The news of global IT company Amazon entering the cryptocurrency market appears to have had a positive impact.
According to the domestic cryptocurrency exchange Upbit, at 12:22 PM on the 25th, Bitcoin recorded 40.09 million KRW, down 0.03% from the previous day. This is the first time it has exceeded 40 million KRW since the 12th.
The news of Amazon hiring blockchain experts acted as a positive factor. According to the US economic media CNBC on the 23rd (local time), Amazon announced in a job posting that it is looking for experts to establish strategies and product plans related to digital currency and blockchain. Amazon explained, "New technology enabling modern, fast, and inexpensive payments will be built," and "We want to provide related services to consumers as soon as possible."
This is Amazon's first foray into the blockchain field. In 2017, Andy Jassy, then CEO of Amazon Web Services, said that Amazon would not focus on blockchain technology. However, as major competitors began dealing with cryptocurrencies, it is interpreted that Amazon is also showing interest. Along with Facebook, which has been running the cryptocurrency project Diem, Apple revealed in May that it is seeking negotiators to sign agreements with alternative payment partners including cryptocurrencies.
Meanwhile, Bitcoin has failed to serve as a hedge against inflation losses this year. According to the Wall Street Journal (WSJ) on the 22nd, Bitcoin also fell during the period of soaring consumer prices from April to June. On April 14th, Bitcoin reached an all-time high of 81.99 million KRW but then plunged more than 50%. In contrast, gold, a representative inflation hedge, rose more than 2% since mid-April. Eswar Prasad, a professor at Cornell University, explained, "Bitcoin's price trend seems detached from macroeconomic fundamentals including inflation," and "Investors do not appear to be buying Bitcoin as an inflation hedge."
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