Bitcoin price tops 50 million won for the first time in Korea

Bitcoin price is expected to hit 50,000 U.S. dollars for the first time and its price surpassed 50 million won for the first time in Korea.

It appears the surge in Bitcoin prices reflects expectations that the cryptocurrency will soon be brought into the mainstream following Tesla’s announcement that it is making a large investment in Bitcoin and will accept Bitcoin payments for its vehicles. However, concerns over the digital currency’s excessive volatility and bubble still remain.

According to crypto and blockchain news media CoinDesk on Tuesday, Bitcoin traded at an all-time high of 47,956.12 dollars as of 4 p.m., up 22.27% from the previous day. At cryptocurrency exchanges in Korea, such as Bithumb and Upbit, Bitcoin price surpassed 50 million won for the first time, climbing over 10% from the previous day. Bitcoin’s 24-hour transaction volume reached 1.5 trillion won as of 4:30 p.m. at Upbit.

In a regulatory filing, Tesla said it invested 1.5 billion dollars in Bitcoin on Monday (local time). The investment amount is 7.7% of Tesla’s cash holdings. The electric-carmaker said it aims to further diversify and maximize returns on cash through the investment and plans to start accepting Bitcoin payments for its products.

Tesla CEO Elon Musk is a well-known advocate for cryptocurrency. After adding #Bitcoin to his Twitter bio last month, Musk tweeted, “In retrospect, it was inevitable.” Musk recently said on a social media chat site that he is a supporter of Bitcoin and the cryptocurrency is on the verge of getting broad acceptance by conventional finance people.


zion37@donga.com