[The Editors' Verdict]Lost Opportunity to Get Rich, Blame the Government

On the 6th, when the outcome of the U.S. presidential election became clear with the victory of Donald Trump, the hot topic among office workers during lunch was Bitcoin. There was a strong belief that Trump's win would translate into a victory for Bitcoin, so everyone?from those who had purchased Bitcoin in advance and were waiting for the election results to those considering buying it even now?was keenly focused on whether he would win. At restaurant tables, while drinking coffee, and even in the elevator returning to work after lunch, people started conversations about the U.S. election. They ended them with Bitcoin.

Two weeks have passed since the U.S. presidential election ended. Interest in President-elect Trump has waned compared to election time. However, Bitcoin remains hot in South Korea. The price, which was below $70,000 before the election, surged daily after Trump's victory was confirmed and is now on the verge of surpassing $100,000. On Wall Street, there are even scenarios suggesting it could exceed $200,000 next year.

With prices hitting all-time highs overnight, how many people can remain unmoved? Koreans, who have experienced FOMO (Fear of Missing Out) due to the rapid rise in apartment prices, find it difficult not to engage in 'blind investment' amid the soaring cryptocurrency market.

Whether virtual assets like Bitcoin, which are traded based on blockchain and cryptographic algorithms, have intrinsic value or not, or whether they guarantee reliability and stability like other safe assets such as the dollar or gold, the property and investment value of Bitcoin has already grown uncontrollably. It is an immutable fact that Bitcoin, walking the fine line between investment and speculation, is recognized as an important asset. Now that Bitcoin, the 'older brother' of virtual assets, has firmly established its power, it is obvious that numerous unverified 'younger siblings' will run rampant. In fact, they already are.

While these phenomena are emerging, our government's legal framework and institutional regulations surrounding virtual assets are still at a nascent stage. This is a stark contrast to the U.S., which is even considering including Bitcoin in strategic reserve assets composed of foreign currencies like the euro and yen, gold, and International Monetary Fund (IMF) Special Drawing Rights (SDR). Our government has just launched the Virtual Asset Committee under the Financial Services Commission and is debating whether to allow corporate investment in virtual assets.

The U.S. has gone beyond trading Bitcoin spot Exchange-Traded Funds (ETFs) on the New York Stock Exchange to opening investment opportunities in options products based on them. South Korea, on the other hand, does not permit Bitcoin ETF trading at all. While the investment path is closed, it is said that taxes on investment income are still collected. It was only in July this year that the Virtual Asset User Protection Act, which can regulate unfair practices such as market manipulation, was finally implemented.

The slow response of our financial authorities to virtual assets can be read by investors as a "warning against investment." Conservative investors interpret this as meaning that virtual assets are not a suitable investment destination recognized by the government. At that moment, Bitcoin falls from being an investment to a speculative object.

The failure to keep pace with the global change in perception of virtual assets will eventually turn into criticism aimed at the government. It could become resentment that "I lost the chance to become rich because of the government," or an evasion of responsibility claiming, "I suffered losses due to lack of regulatory measures; compensate me."