[Digital Today Reporter Hyeon-woo Choo] On the 20th, it exceeded 55,000 dollars on the 20th after Bitcoin, the leader of virtual assets (cryptocurrency), crossed the $50,000 resistance level for the first time in history based on the coin market cap on the afternoon of the 16th. The market capitalization reached $1 trillion for the first time ever.
Bitcoin has been on a continuous rise for more than two months since last December. After surpassing $20,000 in mid-December 2020, it soared to $30,000 in January this year, $40,000 in February, and $55,000 before February passed.
The biggest issue above all is the fact that the bitcoin market cap has exceeded $1 trillion. As a result, Bitcoin has formed a larger value than Facebook ($745.6 billion), Tesla ($7492 billion), and Tencent ($917.1 billion).
Foreign media such as Cointelegraph analyzed that as bitcoin joins the $1 trillion club, it is more likely to be regarded as a regular financial asset. Through this, it is expected that existing investment banks, funds, and large companies will further expand their investment in virtual assets.
In its market outlook, Weatherbush Securities argued that it should pay attention to the fact that the volatility is lower and the rise is wider compared to the 2017 rise. Still, the proportion of virtual assets, including bitcoin, among all financial assets is low, and there is ample room for future investment.
Itoro’s virtual asset analyst Simon Peters predicted, “The inflow of medium and large institutional investors continues to increase. There is enough room for bitcoin transaction prices to rise to $70,000 this year.”
On the other hand, JPMorgan expressed a rather cautious view through its investment report. According to a report by the Bitcoin Exchange Guide, JPMorgan said that a large amount of speculative funds are inflow due to a sudden price increase this year.
In addition, the booming market continues as institutional investors such as BNY Mellon, Bitwise, Block Pie, and Offsray Trust jump into the bitcoin market one after another. BlackRock, known as the world’s largest asset manager, announced its intention to invest in the virtual asset market.
With the rise of virtual assets, Nvidia launched a processor dedicated to cryptocurrency mining. A dedicated processor for Ethereum mining (CMP/Cryptocurrency Mining Processor) is scheduled to be marketed in March.
Nvidia plans to create a processor exclusively for mining, excluding input/output ports and packages, to meet the demand for miners, and to separate it from the general consumer graphics card market to balance the supply so that there is no disruption in supply.
The rising trend in the virtual asset market is having a positive impact on the overall market. It has been confirmed that Uniswap, a decentralized virtual asset exchange (DEX), has set a milestone in processing more than $100 billion in transactions since its launch in 2018. It is interpreted as a sign that DeFi is starting to rise to the mainstream of the virtual asset market. In addition, last year, a survey found that the size of the non-replaceable token (NFT) market grew more than four times compared to the previous year.
In Korea, the revised specific financial information law has emerged as a key issue.
The Financial Services Commission and the Financial Supervisory Service announced that the revised Specific Financial Information Act, which imposes an obligation to prevent money laundering from virtual asset business operators, will come into effect on March 25. In accordance with the enforcement of this Act, virtual asset providers are obligated to report to the Financial Information Analysis Agency (FIU) and to prevent money laundering.
However, some of the exchange industry responded that it was unfortunate that there was no mention of the standard for issuing a deposit/withdrawal account (real name account) that allows real name verification, which is the key to acquiring business rights. However, financial authorities also emphasized once again that the issuance of real-name accounts should be left to the autonomy between banks and virtual asset providers, as each bank has different capabilities to manage virtual asset providers.
Ground X, a Kakao blockchain technology affiliate, announced that Klip, a digital asset wallet developed by Kakao, will issue a stock non-issuance certificate issued by the stock management platform’Quota Book’ with an NFT-based digital card. NFT-based services are expected to spread this year.
Tesla CEO Elon Musk, who recently became the big mouse in the virtual asset world, defended virtual assets, saying, “Bitcoin is better than cash.” Billionaire Mark Quban also added advocacy. He stated that “Ethereum is better than Bikcoin as a means of storing value.” At the same time, he raised the NFT as a’game changer’.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.