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IN-DEPTH: Latest cryptocurrency crash raising concerns about broader market impact
Updated: 2022-06-23 17:17:22 KST
The cryptocurrency markets are as volatile as ever.
But a lot of investors are wondering if something is different now.
There have been high-profile collapses of a number of so-called alt coins and stable coins.
And with so much money wiped out, there are questions about how this might affect the stock market and the broader economy.
To find out more, we're pleased to welcome to the program tonight Professor Yong Jin Kim of the Sogang Business School.

Q1. The price of Bitcoin has been around 20-thousand dollars the past week or so, and has actually fallen below 18-thousand dollars. Investors have noted that this level is below the high we saw in late 2017. It's never happened that the price has fallen below the previous so-called "bull market." What's behind this precipitous decline in the Bitcoin price?

Q2. This latest crash in virtual assets has hit NFTs, too. NFTs are a little harder to pin down, but how far could this go? Is there a "contagion" aspect of this that could affect other markets?

Q3. Mainstream investors, it would seem, have regained some skepticism about virtual assets. This seems to be a recurring feature of these crypto crashes. What can you say about the future of crypto? Are people going to come back?

Q4. Now, the unusual case of El Salvador, which has adopted Bitcoin as legal tender. The government there has bought a ton of Bitcoin, all the way through the peak last autumn. Is this crash in virual assets big enough to affect the real economy, not only in El Salvador? Has there been, or do you anticipate any impact on the Korean financial markets more broadly?

Q5. The Yoon administration wants to deregulate the economy. And part of that could be establishing a basic law governing digital assets. That would give them a clearer legal status. What are the issues at work in terms of regulating virtual assets?
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