in the midst of a crash
[On the 21st, the price of major cryptocurrencies plunged 30% from the previous day, pushing investors into hell. Bitcoin, the leading cryptocurrency, has fallen by less than a third from $35,000 at the beginning of last month. In addition, Ripple, which has risen more than 1,000 times over the past year with the four-second quick payment as its biggest advantage, has already fallen by 10% from its peak, turning the assets of investors bitten by the peak into pieces of paper.]
[In online communities where investors have gathered, pessimists already talking about the Han River Bridge are forming a majority of opinions criticizing the government’s indifference. There are many opinions that the regime, which has been neglecting the overheating of investment in cryptocurrency that has no value, should come up with a solution to this situation. It can be seen that the collapse of the cryptocurrency market is approaching as the first problem that tests the ability of the new government to take power.]
What made Korean society heated up the most in 2018 was the soaring and plummeting of cryptocurrencies.
From the beginning of 2017 to the end of that year, various cryptocurrencies, which rose at least 10 times to as many as thousands of times, showed a dramatic decline in early 2018, so everyone’s attention was inevitable.
– I put all the money I had raised over 30 years into Ripple. Now what?
– I am the Han River Jeongmo. I’m looking for someone to go with me.
– I can’t take it any longer. I borrowed 200 million won, how do I pay it back? Han River Jeongmo should participate.
– I confided last semester’s tuition, but now there’s no way. There is no future.
Just a month ago, there was a lot of talk about how much money you made from investing in cryptocurrency and how much it will rise in the future, but the atmosphere has completely changed.
Everyone is proving how much damage they’ve suffered and saying they want to commit suicide.
On the other hand, there were also observations that the collapse of the cryptocurrency market would frustrate investors from hundreds of thousands to as many as a million, and even lead to anger against the new president.
– What is the government doing? Would you be interested in jumping off the bridge over the Han River as a group?
– What is the government? Did the government push your back to invest?
– Why do you want the government to take responsibility for your investment after G.J.?
– Didn’t you just watch the speculation overheating? Could it be said that the government has no responsibility at all?
– What did you do when the experts warned you all the time that speculation is overheating and dangerous?
Of course, the theory of government accountability did not gain much power. Rather, there are far more criticisms of the failure to distinguish between investment and speculation.
As a result, the price of cryptocurrencies was gradually falling without knowing the bottom, as many investors suffered large or small losses.
– No hope now? Can’t it end like this?
– under! I need a divorce If my wife knew, she would ask me to get a stamp right away.
– I’m giving up. The tulip bubble also went out overnight, is it different from a coin?
All in all, the general public opinion is that the cryptocurrency market is over.
Bitcoin, the major player, has fallen from 1/3 to 1/4, and other cryptocurrencies have plummeted from 20% to 10% of their highs, sometimes even less than 1%. The mainstream was the expectation that it would be difficult.
“Now there is a saying that we need to prepare for the 10,000-dollar era. And a lot of CEOs think that in the long run, they might have to look at $1,000 and run the business.”
In the regular conversation, Yoosung conveyed the atmosphere of the cryptocurrency exchange.
The scale of the cryptocurrency crash was more rapid than expected, and there were various opinions among exchange operators belonging to the cryptocurrency exchange group dominated by Yoosung.
The unprecedented boom in the past year has enabled cryptocurrency exchanges around the world to generate astonishing returns.
Although it is an exchange, the exchanges that have earned huge amounts of money only with incomparable investments compared to other securities companies were very satisfied with the profits of the past year alone.
And in case the boom ends in just one year and the profits will decrease in the future, there seems to be a number of places that are planning to reduce their investment in servers and security, which they have increased over the years.
Everyone knew that the aftermath of this crash would not be small, and even with this one flashy surge and crash, it was predicted that the cryptocurrency market would enter into a twilight period.
“It’s just a short-sighted perspective that doesn’t fully understand people’s desires.”
However, Eugene had a different idea about the future of the cryptocurrency market.
“The rise and fall of the cryptocurrency market has left countless winners and losers in a short period of time. There are people who have made a profit that is thousands of times in a year, and there are many people who have lost all their fortunes in the same amount of time and are still in debt because that is not enough.”
“right. Just looking at the posts on the internet, stories like that are pouring in every day.”
“But, macroscopically, more importantly, the public is learning that too many people have made a lot of money through cryptocurrency. Doesn’t anyone get a stomach ache when they know someone else has made a lot of money? And sometimes I regret why I missed that opportunity.”
Eugene began to express her thoughts in much more detail than usual.
It is because he knows very well that his thoughts will affect the cryptocurrency exchange through his brother Yooseong and eventually the entire cryptocurrency market.
“It’s the same for anyone. How many young people have heard the story of a coin years ago and regret not investing in it.”
“So that’s it. Even if it has plummeted, the price is still 10 times higher than at the beginning of last year.”
“It is not. In fact, it makes me even more upset because of it. ah! I see Are you saying that there are a lot of people who see a crash as an opportunity rather than an opportunity?”
While Yoosung was answering, Eugene nodded as if he had realized something.
“Under the current situation, there are far fewer people who are optimistic about the cryptocurrency market compared to those who are pessimistic. However, the number of people interested in the coin market itself has increased significantly more than before. If there were only hundreds of thousands of people interested in coins at the beginning of last year, how many people in Korea are not interested in coins now?”
“If you look at it that way, it’s at least a 100-fold increase.”
Yooseong nodded at his brother’s explanation.
“right. The size of the market has increased tenfold, and the interest has increased 100fold. And if only 10% of interested people jump into investing, the number of investors will more than tenfold from last year.”
Eugene’s thoughts aren’t just because he knows the future he’s been through before returning to the past.
Going through this time once again, I understand the flow of the world much more delicately.
In Korea, cryptocurrency investment is increasingly penetrating into the daily life of ordinary people, even holding briefing sessions on cryptocurrencies at village halls in rural villages.
People who had no idea what cryptocurrency was until just a few months ago are now each becoming cryptocurrency experts arguing about the future of Ripple and Ethereum, and the dubious cryptocurrencies that old people break their pockets and multiply by ten thousand times next year. They were rushing to invest in money.
“It’s true. The number of subscribers is increasing even though the drop has been going on for a month already. There are analysts who say that the current frenzy is temporary and that cryptocurrencies will eventually have to be satisfied as a niche market, but from what I heard from my brother, it doesn’t seem to be the case.”
“Of course, you should always listen and pay attention to what those pessimists say. We cannot fully predict the future under any circumstances. So, always be prepared for the opposite situation to come. In that sense, the pessimists are the ones executives should be most concerned about.”
“okay. We should be prepared for pessimistic situations, but now we should focus on growth, right?”
“uh. I don’t know where the crash will stop, but in the meantime, the number of investors will continue to increase, and if the server is stopped or hacked for even a single day, the exchange will be in a state of not being able to recover.”
Thanks to Yooseong’s preparation, the hundreds of exchanges belonging to the alliance he operates have always ensured a pleasant connection environment for investors, and there has not been a single hacking incident yet.
As a result, during the same period, many exchanges that were not affiliated with the Alliance were caught up in accidents and lost members, while the exchanges of the Alliance were sucking them in.
“And they said the Commodity Futures Trading Commission (CFTC) is going to announce the results of its investigation into Tether soon.”
Eugene, who has a wide variety of connections, was able to obtain information that was difficult for his younger brother to access without too much difficulty.
“What do you think? Are you positive?”
“It looks like they are going to start a full-scale investigation. First of all, it seems that the use of tether in the United States will be stopped at least if we do not reveal the rationale as to whether tether is really properly pegged.”
“Then it will be a big problem. Exchanges that use tether will make a noise.”
Yoosung said with a cheerful smile.
Tether is a currency that is pegged one-to-one with the US dollar and is used as a reference currency in many cryptocurrency exchanges.
A number of cryptocurrency exchanges use this tether to trade other cryptocurrencies without creating a separate system for depositing and withdrawing real money.
If it was originally, there should have been a big shock to the cryptocurrency market by now due to the tether crisis, but the alliance led by Yoosung does not use tether, but uses a separate reference currency called the alliance coin, which is issued by itself.
And unlike Tether, Alliance Coin transparently reveals that the amount equivalent to a large investment bank is normally deposited.
The transparency of this Alliance Coin is one of the greatest strengths of Alliance, a coalition of cryptocurrency exchanges, and investors can continue to invest without fear of depreciating the value of the Alliance Coin they hold.
Many cryptocurrency exchanges that are still popping up are trying to choose between Tether and Alliance coins as a standard for trading, and Tether can be said to be the Alliance’s biggest competitor in a sense.
However, it is clear that the decision of the U.S. Commodity Futures Trading Commission will take a fatal blow to Tether.
If the issuer does not prove that the issuer really holds the cash equivalent to over $1 billion of Tether issuance, the value of Tether will become a piece of paper overnight, and the cryptocurrency exchanges that use it will also be shocked. will be
“Isn’t the Commodity Futures Trading Commission just making such a decision?”
Yoosung already thought that his brother had exerted influence in some way.
It was clear that this tether crisis would be an even bigger boon for the Alliance, which already occupies an absolute position in the cryptocurrency trading market.
“It must have been a decision made in accordance with the law.”
Eugene responded with a smile. The downfall of Tether and the monopoly of Alliance Coins will greatly help the Alliance’s profitability.
It is obvious that the trading volume of cryptocurrency exchanges will increase over the next several years.
And there are absolutely no small gains from the exclusive issuance of the Alliance Coin, which is the basis for it.
In at least five years, the issuance of Alliance Coins will reach at least $100 billion.
The revenue generated by issuing such a huge amount of money and attracting it to the bank alone is more than billions of dollars every year.
The cryptocurrency investment market is a zero-sum game that does not generate useful productive value to the outside.
In the case of stocks, the company produces value through a variety of economic activities, as are investments in bonds and other commodities.
However, cryptocurrency is an unproductive speculative activity that solely depends on the psychology of investors.
So, when someone makes money, it means that someone else has lost that amount of assets.
And yet, people in the world did not pay much attention to the fact that the biggest winner of such a zero-sum game is the person who runs the cryptocurrency exchange, not the few investors who made a lot of money by investing in cryptocurrency in the early days.