This is Keun Young Kim, the host of WTIA TV. Many people will suffer from the corona crisis, but I started YouTube because my report wanted to be of little help to my life. I sincerely hope that it will be a little information and comfort to many people. In his book “Big Change,” Professor Yoonsik Choi, a scholar of Korea, mentioned 10 factors that will determine the limit of human destiny in the 21st century.
First, the population explosion. Second, global warming. Third, the war of water and the jar of water is now evaluated as the biggest factor causing the third world war.
Fourth, the side effects of genetic modification to solve the food problem. Fifth, the crisis in the variant file, biological time bomb. Viruses emerge as new species between 11 and 39 years and launch a massive attack on humanity. Sixth, ecological suicide due to environmental destruction.
Seventh, the repeated economic crisis. Eighth, the Religious War and the New Crusader War. Ninth, military expenditure and future war. Tenth, side effects of the surveillance society. These ten factors maintain a mutually organic relationship with each other and are generally judged to have stronger reinforcement feedback actions on the bad side than the mutual good side.
Faced with a crisis for all these ten factors, however, we’re a human being by creating a new civilization through challenge and response. I will first tell you about the origin of the current corona about the fifth factor, the crisis of the virus, and the biological time bomb among these various factors right now.
What is the crisis we think about, the crisis caused by corona? It can be summarized in six ways. First, nobody can avoid the Corona. Second, signal understanding is important, and above all, transparency is important. Third, the initial response is important. Fourth, we need to respond in all directions, and fifth, if we overcome quickly, it will be an opportunity. It’s a matter of speed.
Sixth, let’s overcome the crisis in a critical situation. The corona crisis can be summed up into these six categories, and probably many of them refer to oil ETFs as their investment techniques. Among them, Contango, Backwardation, and Modern Monetary Theory (MMT)), but I think these are the basic elements of the current crisis. However, there is a crisis and a solution, and I will first talk about the correlation between the crisis and the solution. The current corona crisis is also a crisis called A.
It is the same as our humanity or Korean government, but through an emergency meeting, we came up with a solution called A1. However, this solution does not always work late. Second, another crisis, called B, comes.
We also created a solution B1. However, in this way, the solution does not keep up with the crisis. Crisis for C, solution C1 for C, crisis for D, solution D1 for D, If you go about F when the crisis of F comes, and if the solution F1 comes out, then you The crisis is reduced and delayed. The F1 makes preparation late, works and is a solution to the crisis. The crisis is over. In other words, it is a story that they are doing too little too late. Looking here now, let me talk about the debt issue for a moment.
What are the real reasons for countries, companies, and individuals that are sustaining the economic situation even with large debts now? It’s that simple. We should consider ourselves very lucky. Because the interest rate is low. Now, the Chinese economy, which was good in the past, is not very good at this moment, but now China is blocking debt with debt.
China definitely needs debt deleveraging. If China does not do this, it will be able to enter into long-term low growth, as you can see in Japan in the past or as an example.
When interest rates go up and the roll-over cost exceeds about 10%, the balance we’re talking about will meltdown. So let’s take a quick look at the relationship between this corona crisis and cryptocurrency.
What is the future of cryptocurrency? Why is Bitcoin price soaring? Why are people investing in Bitcoin? What is Bitcoin? The definition is simple. Bitcoin is an online currency created based on blockchain technology. The advantage is safe. It is durable. Supply is limited.
There is scarcity. At the end of 2018, when it was 3 million won, $3,000, and in March 2020, it was 6 million won and $5,000. Why is the price of Bitcoin rising so fast? The reason is the increase in the amount of money in countries around the world due to the corona crisis. For example, there were a 20.4% increase in currency volume in the US, 9.1% in the euro, and about 6.4% in Japan compared to the previous year.
There was an increase in the amount of money, and due to the promotion of digital currency in each country, The reliability of the technology has been proven. Next, post-transaction services such as PayPal and Visa card. It is said that there was some entry into the system, such as dollar linkage and the introduction of a cryptocurrency payment system, and Bitcoin with a total number of 21 million issued.
Scarcity, the end of mining in 2040 in the issuance process. Currently, about 18.6 million have been mined, which means that the mining will be completed by 2040. The biggest factor behind this surge in Bitcoin was the change in common perceptions of people around the world, as well as the American and Chinese factors. What is the change in world common perception? It could be included in the short and long term returns. 400% or more after corona Soared.
As I mentioned earlier, in March 2020, the minimum amount of KRW 6 million is currently exceeding KRW 25 million. Also, if the governments of each country to introduce a digital currency, the corresponding cryptocurrency will not disappear, and this usage will increase substantially.
The reason is that it currently accounts for about 20% of the world’s underground funds, which is 20% of GDP. I think we should bring out into the open sources of these underground funds, but underground funds have always existed since humanity survived.
Right now, 90% of underground funds are in circulation US dollars. In addition, unlike the dollar, CBDC, Central Bank, and Digital Currency that pursue the value as gold, digital gold, and dominant power, the centralized bitcoin is recognized as a global currency. Also, the supply of global common awareness will be short. In 2020, there is a shortage of supply for the half-life of supply every four years, which is reduced by a half. We’ll cover this in detail in the next set, I will deal with it.
Then, a shortage of supply and an increase in demand occurred at the same time. These days, DeFi, the decentralized finance market is growing dramatically 26 times this year It has grown about, but it has exceeded about 20 billion dollars.
To buy this stable coin Bitcoin is required as a medium. For this reason, it can be said that we are suffering from a shortage of supply. Let me tell you about DeFi for a moment. In the past, there was no interest in cryptocurrencies, but DeFi is what allows you to use loans in the cryptocurrency market. Interest income was generated by lending it to someone else. It is creating a DeFi market in cryptocurrency units. When cryptocurrency is in the DeFi business, credible bitcoin acts as a stable coin.
It means like this. Let’s look specifically at the United States. The U.S. S&P The earning rate is 10% to 15% in 2020, a rate of increase that is several times higher, and Bitcoin is now 160% to 180%. In addition, institutional investors such as JP Morgan prefer Bitcoin over gold. Third, institutional financial sectors and cryptocurrency markets are expanding their entry into the cryptocurrency market There is.
Hedge fund institutional investor’s largest asset investment growth of about 88% It accounts for the proportion, which means that the value of the asset is recognized, while in the case of digital asset manager Grayscale, Bitcoin was used in October currently.
It has been announced that it owns 520,000 bitcoins as of October. It also added a bank. Major bank JP Morgan provides banking services to the cryptocurrency asset exchange Coinbase and Gemini. It is a story that it allows opening a real name account. Also, companies have joined. Publicly traded company MicroStrategy has purchased $420 million worth of Bitcoin in two rounds of its portfolio. There are about 38,050 BTC.
As a result, the company’s stock price rose. This is a story of a positive reaction to the market. It also has the PayPal effect everyone is talking about. With the news that PayPal supports cryptocurrency trading, about 30% surged in October alone. PayPal is now used by about 350 million people. It is the world’s largest online payment company, and when payments are made in cryptocurrency through 26,000,000 affiliated stores, This is a method of sending and paying by converting them.
It means that PayPal exchanges cryptocurrencies and real currencies to relay transactions. Online payment company PayPal announced that they will accept and support Bitcoin, Ethereum, Litecoin, Bitcoin Cash, etc. from next year. stated its support for the system to pay in four species of cryptocurrency it probably will become a bigger cause next year. In addition, the US current election Biden became president after the end of this year, which has the effect of Biden.
Biden will continue to maintain its current low-interest-rate trend at zero interest rate until 2020, and its fiscal expansion now leads to a surge in liquidity and thus the dollar value It is falling, real inflation is also occurring, and Joe Biden said he would increase taxes for the rich.
In addition, Joe Biden appointed Gary Gensler, as a cryptocurrency specialist, the former Chairman of the Commodity Futures Trading Commission been appointed as the team leader for reviewing banking and securities regulations, and there are many other factors, and in the Trump era, treasury stocks and corporations to buy back treasury stocks with surplus cash gained from corporate tax cuts in the Trump era.
However, the current buy-back means that the company judges that the stock price is too low, but if Biden’s tax increase is realized, the buy-back’s merits will be reduced.
So, perhaps it will also reduce buyback here now specifically to the United States Brian Brooks call director Finance and Administration, the existing virtual money raised He is promoting the sum.
In July, he allowed the U.S. bank’s cryptocurrency storage business, and he is promoting a cryptocurrency exchange bank through a special permit system, and about Kraken in September at the Kraken Asset Exchange where my friend is a major shareholder.
He has granted an asset exchange bank license. Congratulations!! In addition, in October 2020, PayPal Virtual Asset Service is also preparing a digital asset exchange by DBS, the largest bank in Singapore. Looking at China, China, which was the largest market for virtual currency, is now intensively cracking down on cryptocurrency OTC transactions. The cryptocurrency of Chinese miners cannot be converted into cash, and the channel is frozen.
About 74% of mining pools are having a hard time converting cryptocurrencies into cash. Why are people investing in Bitcoin? I think it is digital gold that has a scarcity network effect. If you compare Bitcoin and gold for a moment, if there is a side that bitcoin wins, the supply is more limited. The greater the network effect of Bitcoin than gold, the more secure and convenient the transmission era. On the other hand, if gold wins the judgment, jewellery is possible.
Brand value has a brand value for thousands of years. There is still a bigger network effect. However, perhaps, in the opinion of economists, the current market capitalization of gold is about 9 trillion dollars, the total cryptocurrency is 0.5 trillion dollars, of which 70% of Bitcoin is 0.35 trillion dollars, compared to about 90 trillion dollars worldwide.
So, since the market capitalization is about 20 times, it is arithmetically believed that Bitcoin has enough upside potential if compared to digital gold.
Why are people investing in Bitcoin? Currently, there are many bonds in Korea that pay less than 1% interest. In terms of macroeconomics, the value of its currency has now fallen by 50% in the last 50 years. In addition, the influx of money flows in bitcoin, which has its anonymity as its strength, especially the amount of money issued by emerging and dictatorships as well as the United States and China, and the corrupt funds that they wanted to hide.
Also, since the half-life of 2010, the half-life is now halved about every four years, which can be compared to the speed at which the money is printed. The fact that the half-life gradually decreases means that the speed of printing money is slowed down that much.
Will the Bitcoin price continue to rise now? Or is it a temporary phenomenon? Or is it an illusion? The insurance value against currency depreciation will continue to rise to $200,000.
This is a story from my friend Sean Okono, one of the largest shareholders of the Kraken exchange, which was previously bank licensed for a cryptocurrency exchange, in December 2017. It will go up to $200,000.
In addition, the investment’s Lynn Alden, which I mentioned earlier, said it would go up to 500,000 dollars. Citibank also said it would go up to $318,000 by the end of next year. While there are good and optimistic opinions like this, Ray Dalio, CEO of Bridgewater Associates, a very famous investor, said that if governments issue digital currencies in earnest, there is a possibility of a sharp decline or extinction.
It is said to exist. What is the correct story? For the time being, we can probably put weight on the rise in value. More than any other factor, even if the money was released, too much was released. Then, what about cryptocurrencies other than Bitcoin, which is our true boss? Ethereum is a two-headed pair of Bitcoin, so there is a high probability of sharing fate.
In other words, the rate of rising will be different until some point, but it can continue to rise in cooperation with Bitcoin. Many other cryptocurrencies will repeat the cycle of generation, growth, and extinction by those who consider themselves not satisfied with the two cryptocurrencies as an alternative or speculation.
If the two representative cryptocurrencies, Bitcoin and Ethereum, are assumed to disappear in the shadows of history, the other cryptocurrencies will disappear faster. So, what kind of situation opens up an independent survival scenario? The bitcoin evaluation of famous investor Paul Johnson compared bitcoin to metal.
Precious metals, industrial metals, and bitcoin were evaluated as mediums of storage and exchange of precious metals, diamonds and gold, silver, and wealth. The rest of the cryptocurrencies will not die if they are rated at least as much as industrial metals that are directly involved in the business.
In other words, copper, iron ore, aluminium, cobalt, lithium, nickel, etc. are referred to as industrial metals, and if they become metals that can be used as raw materials for direct business, construction, manufacturing, and other equipment made with them, these metals will survive. In other words, other cryptocurrencies, like industrial metals, can survive even if they are not precious metals.
To express that you want investors sometimes speculators to pack a large gain at one point in cryptocurrency, these people have already opened their trade chapter that there was only one point even bwatgeona obtained directly benefit, but also who those rumours of people got the benefits are, For the time being, other cryptocurrencies will also pay attention, however, really if the trend declines.
What will happen if the chapter of extinction comes? There is only one way to survive. The direct project and the cryptocurrency issued by the business, the connected cryptocurrency, and the cryptocurrency used will survive.
At least say we are self-improving. In other words, the project-related cryptocurrency will increase in value in the rising market, slow decline in the falling market, and will not die in the extinction market. As you can see from Paul Jones’ distinction, it is the least industrial metal, even if it is not a precious metal, Bitcoin. It is said that even if a hand change occurs by people who want to keep the existence of the cryptocurrency to a minimum, a natural cycle occurs.
So what is the most important part? Real Digital Currency is connected to Real Project. There are a lot of caveats to cryptocurrency. There is also high volatility, and will people really believe? What Happens When Competing With Other Cryptocurrency? What about the state’s interference? Realistically, in 2017, when the futures market was listed, a third was sometimes cut.
Someone like Masyoshi Son is saying that it will crash in two months. However, the present and the future are different. It can be said that it will be different. What is the conclusion of the current assessment of Bitcoin? Of the three functions of currency, it is currently performing some of the functions of the trading function of the exchange, the function of storing value, and the function of a measure of value.
So far, it would be correct to evaluate it as a digital crypto asset. There are many concerns and strategic solutions to the coronavirus outbreak right now, but the big conclusion on the current situation is simple. Make a crisis an opportunity, not a risk, by predicting ahead, setting a strategy, and responding quickly.
This means that when the silk, as well as Corona situation, Bitcoin crisis as well, which would ohdeora of several generating 10 kinds of factors, Professor Choi had determined the limits of civilization 21 centuries He did stories too, and we are ready to have such large conclusions humanity.
Yes, As we have come, we believe that we will be able to develop into a better world through challenge and response.