Bitcoin returned to the market at year end and soared to the new height, $28.300. This proves that this cryptocurrency is still attractive to a lot of investors even though they have tasted the bitter fruit during the disastrous price drop earlier this year. Some domestic investors shared their contrastive opinions on this trend.
– My Huyen
According to Mr. Cris Tran, CEO of Infinity Blockchain Ventures, bitcoin investing is something that a large number of investors is currently doing all over the world. In recent years, the price of this largest digital asset spikes in the last months of the year traditionally.
On the contrary, according to Ms. Lynn Hoang, Director of Binance Vietnam, the uptrend of bitcoin this time has different motivations compared to 2017. Some developments are affecting decentralized finance in Vietnam and beyond. In general, the legal trend of digital currencies is processing.
Lynn Hoang, Director of Binance Vietnam
Bitcoin has been gradually recognized and legalized by reputable financial institutions. This could be a positive driver to push bitcoin’s price higher than it is currently. Central bank digital currencies are inspired by bitcoin but will be controlled by the government.
For example, the European Central Bank is promoting the digital euro project. Or the People’s Bank of China spent six years researching the e-yuan project before launching pilot programs in Shenzhen, Suzhou, Chengdu, and Xi’an this year.
In addition, the market is seeing the emergence of the two payment giants, Square and PayPal. These giants have allowed users to buy and sell Bitcoin and other cryptocurrencies like Ethereum, Bitcoin Cash and Litecoin on their platforms.
It is noteworthy that the emergence of other cryptocurrencies issued by the large corporation has brought confidence to the crypto market. JPMorgan also launched an interbank payment system that uses blockchain-based technologies to create JPM coin (JPM) digital assets. Ms. Lynn said that these trends will have an impact on the Vietnamese government as well as startups and investors in Vietnam.
But, after all, it must be admitted that bitcoin is an unstable market and contains many unexpected fluctuations, Ms. Lynn said. Therefore, investing in bitcoin always comes with risks, now or in the future.
Risky, but bitcoin is still attractive to the Vietnam market. Although information about this currency is released limitedly in this market where people are rushing in. This year, a number of multi-level cryptocurrency scams have come to light in Vietnam. This is a consequence of decentralized finance in the dark still. Many people want to invest in cryptocurrency but actually do not fully understand this coin. For example, Tradenew.io, which has just been broken, has 3,626 accounts with a total amount of virtual currency USDT equivalent to 1,089 billion VND. Tradenew.io appropriated the total amount of more than 5 billion VND from the victims.
Cris said that the virtual currencies of these companies are not actually a cryptocurrency. They are a system designed to deceive investors who lack knowledge in this industry. This fraud is emerging not only in Vietnam, but also in Southeast Asia because of a lack of legal framework in this field to protect investors. When the regulations and the measures are available, it is possible to supervise and punish these businesses accordingly.
According to Ms. Lynn, the most common method these digital currency exchange platforms use is the Ponzi scheme. The most obvious sign is their commitment to pay really high interest rates. Therefore, investors need to equip themselves with knowledge about finance and cryptocurrencies as well as choose the popular, reputable, well-informed cryptocurrencies that are published internationally. Moreover, they have to choose the reputable trading platforms, with a large number of users and have been operated stably in years. Those are some tips that investors can protect their assets.