In line with a recent report by The Scoop, Professor Hong Ki-hoon of Hongik University added that the cryptos alike Bitcoin [BTC] shouldn’t be considered similar as “safe-haven assets,” at the extent of Gold, dollars, or the U.S. Treasury bonds. He doesn’t deny, however, that volatility within the financial markets is causing some extra money to accumulate within the cryptocurrency market.
Are Crypto’s Safe From The Ongoing Outbreak
Kong, the Business Administration department of Hongik University, added:
“To be a safe-haven, certain conditions must be met. Primarily, the volatility of the asset’s value must be low, and secondary, when market volatility is predicted to hike up, the value should rise. Therefore, cryptos don’t meet with the conditions.”
The professor argues the subsequent regarding the explanations behind the rise in crypto volume even within the covid outbreak:
“The reason for the rise within the volume after the markets crashed was that the spirit of investing in higher volatility worked to catch up on the depreciated asset value.”
Crypto’s & Lack Of Regulation In South Korea
The article also raised several concerns regarding “market manipulation”. It also added that the cryptocurrency environment isn’t sufficiently regulated within the country. They believe the market’s current popularity doesn’t alleviate the concerns of investors who hesitate in purchasing digital assets.
While on the other hand, an anonymous investment expert quoted by The Track revealed:
“Individual investors are often unable to manage the risks of stocks properly, but it’s virtually impossible to measure the risk factors involved within the use of cryptocurrencies. You have to understand before investing fully.”
Also earlier in May, South Korea’s Ministry of Economy & Finance added that they’re preparing to amend the nation’s existing Tax Law’s – a move which could affect cryptos profitability industry within the country.