[Bitcoin Now] Rebounds to 51 Million Won Range... Diverging Expert Predictions

Plunged to 42.59 million won the day before but rebounded
Experts: "Just speculative assets" vs "Now is a buying opportunity"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading cryptocurrency that once fell to the 42 million KRW range, has rebounded to the 51 million KRW range. Experts' predictions on the direction of Bitcoin are divided.

According to the domestic cryptocurrency exchange Upbit, as of 4:01 PM on the 20th, Bitcoin recorded 51.35 million KRW, up 1.93% from the previous day. It had plunged 20.2% from 53.41 million KRW at 10:10 PM the previous day to 42.59 million KRW but then rebounded.

Experts' interpretations of Bitcoin's sharp decline are conflicting. On the 19th (local time), UBS Global Asset Management claimed in a report that cryptocurrencies like Bitcoin are merely speculative assets. UBS Global Asset Management explained, "Cryptocurrencies are highly volatile and cannot reliably store value, and only a very small number of companies accept them as a means of payment," adding, "Since the correlation between Bitcoin and risky assets has increased, there is no reason to include Bitcoin in a portfolio." Earlier in January, UBS Global Asset Management had evaluated that Bitcoin could fall to zero KRW.

On the other hand, some argue that now is a buying opportunity. On the 19th, Cathie Wood, CEO of ARK Investment, said in an interview with the U.S. economic media Bloomberg TV, "Now is a very good time to buy Bitcoin," and added, "I expect it to rise to $500,000 (approximately 566 million KRW)." Delano Saporu, CEO of the U.S. investment firm New Street Advisors, emphasized, "For those considering long-term investment in Bitcoin, now is an opportunity to buy at a low price."

Meanwhile, Nobel Prize-winning economist Paul Krugman, a professor at the City University of New York, strongly criticized Bitcoin investors by likening them to a cult. On the 19th, he tweeted, "Bitcoin is like a cult that will survive forever," and said, "Bitcoin is neither a convenient medium of exchange nor a stable store of value, and it cannot be considered an innovation." Professor Krugman is a representative cryptocurrency skeptic who, in December last year, evaluated that Bitcoin, despite being developed 10 years ago, has not grown into a currency.

This content was produced with the assistance of AI translation services.