South Korea's crypto-sector has been expanding at a rapid pace lately, with new sets of investors joining the market community everyday.
In fact, Bitcoin's surging price has also instigated a corresponding surge in the volume of virtual asset transactions in the country, with the steadily increasing demand for BTC in North America positively rubbing off on the South Korean market making it one of the world's largest Bitcoin markets today trading nearly 18 billion U.S. dollars per day.
But many analysts are now watching the phenomenon with weary eyes as they believe the current market is overheated.
As the value and market size of virtual assets such as Bitcoin grow rapidly worldwide, is the system to support this keeping up with the pace?
Joining me live is Hur Joon-young, Professor of Economics at Sogang University.
Professor Hur, thanks for joining us.
So, South Korea will begin to tax capital gains from trading of crytpocurrencies from next year as previously proposed despite some arguments that the taxation should be delayed until the government has proper oversight over the industry.
What are your thoughts on this?
Seoul's finance minister referred to cryptocurrencies as "intangible assets" and said that it was a misunderstanding to label them as currencies. Walk us through why clarification is important. What are the implications?
But at the same time, the digital currency payment market is on the rise on the back of Bitcoin frenzy with more companies choosing crypto or digital currency as a payment option. You can now get your coffee at certain coffee stores and buy goods at a convenience store using your Bitcoins.
Is Bitcoin and cryptocurrency the future of money?
Last but not least, Bitcoin plunged plunged by over 30-percent last week below 45-thousand dollars here over fears of U.S. capital gains tax hike. Today, it's back up at roughly 55-thousand. What's your near to long-term price outlook for Bitcoin?
Professor Hur Joon-young of Sogang University, many thanks for your insights. We appreciate it.