Cryptocurrencies were developed in response to the 2008 financial crisis. Satoshi Nakamoto’s vision is to create a currency that can survive an economic crisis. Blockchain technology was disruptive by design considering its ability to discard third parties that confirm transactions. And since it has gained hype both by media and on social media, Bitcoin almost hit $20,000. However, considering that it’s a new market, regulators shook things up leading to bearish trends for digital currencies.
However, if you are going to ask Jeong Ki-wook who is a former executive at Cisco and the founder of TrustVerse which is a South Korean wealth management platform, he believes that assets such as Bitcoin and Ethereum could eventually evolve as a safe haven for assets in long-term.
Stability in the Near Future
In an interview with ZDNet Korea, Jeong mentioned that cryptocurrencies have the potential to safe keep assets once cryptocurrencies have reached stability. Unfortunately, the crypto market is extremely volatile. At one point, you may be doubling your money, but on the next day, you may have lost almost three-fourths of your investment.
There are a growing number of parties interested in cryptocurrencies. Businesses, individual users, and even banks are starting to see the value of cryptocurrencies. And as mass adoption approaches, there is a chance that cryptocurrencies could actually become more stable in the near future.
Issues Other Than Volatility
It isn’t just volatility that investors should be concerned about. In fact, you also have hacking as a problem. Digital tokens can easily be stolen by criminals using different methods such as malware. Nathan Wenzler, who works as chief security strategist at AsTech, “We have to keep in mind that hackers will go after targets that will reap them financial gains”. He added that “as cryptocurrencies like bitcoin and ethereum become more popular and more valuable, the services that support the buying, selling, and trading of these cryptocurrencies will increasingly be targeted”.
Making Cryptos Legal in South Korea Again
South Korea is now planning to re-legalize ICOs. According to Representative Hong Eui-rak, “The bill is aimed at legalizing ICOs under the government’s supervision”. With the possibility of reversing the soft ban that was implemented recently, there is a surge in interest on ICO platforms such as Ethereum. Currently, ICOs and cross-border payments using cryptocurrencies aren’t allowed in the country. That is despite the move by lawmakers to walk back on their plans to regulate cryptos.
Currently, South Korea is one of the world’s largest crypto market. With previous tensions with North Korea, many South Koreans have viewed cryptocurrencies as a way to save their assets.
Past Projects That Failed
Since the creation of Ethereum, there was a rise in the number of ICOs. The Decentralized Autonomous Organization (DAO) was among the very first ICOs in the Ethereum platform that failed. Its goal was to decrease the risk for crypto investors.
Can the effort of lawmakers re-legalize ICOs in South Korea? This could mean big news especially now that Ethereum’s price is on the rise. It could easily affect Ethereum’s price in the near future especially how big Korea’s crypto market is.