SEOUL: A single bitcoin, a digital currency that exists as a computer record, is now worth more than one ounce of gold, attracting investors’ attention. As some say that the first bitcoin exchange-traded fund (ETF) to be issued in the United States is set to receive approval from the U.S. Securities and Exchange Commission (SEC), the investment in bitcoin is expected to be popularized.
So far this year, bitcoin has surged more than 30 percent. The price of bitcoin surpassed the value of an ounce of gold on March 2 for the first time, setting a fresh record high. According to CoinDesk, the leading trade publication covering bitcoin and blockchain news, bitcoin ended at US$1283.3 (1.48 million won) per unit on the 2nd, exceeding US$1,241.25 (1.43 million won) per ounce of gold. The figure was three times higher than 502,000 won (US$433) a year earlier.
Bitcoin is a virtual currency that can be transferred from an individual to an individual online, not through a bank. The digital currency functions like traditional currencies, but some have pointed out that it is prone to reliability and security and pitfalls. Bitcoin price fluctuates depending on demand and supply. As it is often used by people who want to remain anonymous without an intervention of the governments and banks, it can be used to make illegal financial transactions.
However, there have been speculations that the U.S. SEC will approve the issuance of the bitcoin ETF by the end of this week, investors are paying attention to the virtual currency. When the bitcoin ETF is approved, more and more people will invest in bitcoin. Also, its investment value and reliability will be improved.
The South Korean financial authorities are said to be considering the introduction of bitcoin systems. The domestic bitcoin market, which was first opened in 2009, has grown to worth 1.5 trillion won (US$1.29 billion) and 2 million BTC in trading volume. Industry sources expect that the bitcoin related industry will grow by more than five times in the next three years.
