Investor That Can See The Future

Chapter 68

A transaction is an act that benefits both parties.

In the past, transactions were made through barter. It was a direct exchange for a loaf of meat and a sack of rice.

However, as the size of the transaction increases and the number of participants increases, there is a limit to only barter exchange. So everyone started to trade using things that could be appreciated.

The advent of real money.

Because it had to have value in itself as real money, jewels and metals were mainly used.

People carried money made of gold or silver to trade. To make a big deal, you had to carry a cart full of gold and silver coins.

Then someone thought.

Wouldn’t it be better to leave the gold coins in a reliable place and carry a certificate that can be exchanged for them instead of carrying them around every time?

Banks were created, and people traded with certificates issued by them.

Since then, money has been completely separated from its real value. The deed has no value on its own, but whenever you take it to the bank, you give the amount of gold it says on it. Because of that belief, the deed was like a gold coin.

The advent of fiat money.

Each country printed and circulated as much money as it had gold, and when they brought money, they exchanged it for gold.

Similarly, $35 was exchangeable at the rate of 1 ounce of gold.

This gold standard system continued into the 16th century. However, in 1971 the United States abolished the convertibility of the dollar to gold. Now they could freely issue money regardless of the amount of gold they had.

The fiat currency, which has lost its convertible function, has maintained its value only through the issuer’s credit. It was the US government that guaranteed the value of the dollar.

Trust in the state was belief in the value of money.

However, this belief was shaken. In the face of an unprecedented crisis called the financial crisis, the United States implemented quantitative easing in the name of revitalizing the economy, printing virtually unlimited money and releasing it to the market.

This showed that the value of money can be changed freely by government policies.

When they could no longer trust the government to issue money and guarantee its value, investors began to look for alternatives.

At this time, an alternative that has emerged as an alternative is the cryptocurrency represented by Vantcoin.

The characteristics of cryptocurrency can be summarized in several ways.

First, neither cloning nor hacking is possible.

First of all, cryptocurrencies are not computerized by a central server, but blocks in which information of each user are gathered are connected. This is called a blockchain, and it is impossible to change the previously generated information unless more than half of the blocks are hacked at the same time.

Therefore, duplication and hacking are virtually impossible. In the case of the Mountain Hill hacking that occurred the other day, the exchange was hacked and BANT Coins were stolen, not the BANT Coins themselves.

Second, there is no management and issuance subject, and only a certain amount is issued by a set algorithm.

Unlike existing currencies issued and controlled by the government, cryptocurrencies cannot be controlled at will by developers, and only works according to a predetermined algorithm.

It is automatically issued when the encryption problem is solved with a computer, which is called mining by comparing it to mining minerals in a mine. As time goes by, the mining difficulty increases, and it automatically ends after a certain amount is issued.

Third, remittances and transactions are not subject to government control and regulation.

During Brexit, the British government halted the exchange of the pound. This shows that the government can freely control the currency in emergency situations.

Even if you have billions of dollars in your bankbook, if the bank suspends your account, withdrawal and remittance are impossible.

However, cryptocurrency is free from these regulations. Transactions are possible as long as you are connected to the network.

If a war breaks out, there is no need to bring cash, just the encryption key and get out is enough.

These advantages can also be disadvantages.

As there is no management body, there is no way to be compensated for any problems. If the bank had been hacked and money was taken out of the account, the government would have stepped in to compensate for the damage. However, those who lost all their fortunes during the Mountain Hill hacking were not compensated anywhere.

After the popularity of BANTCOIN, hundreds of cryptocurrencies have been launched on the market.

I asked Sangyeop, thinking about Yeji I had just seen.

“You know what Ethereum is?”

Sangyeop senior nodded his head.

“uh! I know. I thought about it a while ago.”

The core technology of cryptocurrency is blockchain. As a distributed server storage method, it is currently being used in various IT fields, not just cryptocurrency.

Ethereum just appeared on the market about a year ago. The blockchain of Vantcoin, an early cryptocurrency, only stores information about payments and transactions, whereas Ethereum can store information about contracts as well as information as money.

In other words, it can be programmed to automatically make a transaction when certain conditions are met.

“You can think of it as a form of cryptocurrency that has evolved from BANTCOIN.”

“How big is it?”

“The market cap is less than a tenth of that of Vantcoin.”

Cryptocurrencies can be created and issued by anyone as long as they have the ability to create them. However, not all cryptocurrencies are valued in the market. While Vantcoin is already appreciated by a large number of people, other cryptocurrencies do not.

BANTCOIN was created as an alternative currency. Institutional banks had to pay huge fees when exchanging small amounts or sending money overseas. BANTCOIN allows free exchange and overseas remittance with a much lower fee.

However, apart from these conveniences, the current market is in the form of a speculation board. Even if something big like Brexit doesn’t happen, it’s not uncommon for it to go up and down by tens of percent in one day.

Even if BANTCOIN went up to $700, the current market cap would be around $10 billion. All other cryptocurrencies combined are less than $15 billion.

Since the market itself is small in the first place, it is bound to show rapid volatility depending on the movement of the investment.

Money should be stable in value.

A currency that was 10 dollars yesterday, 5 dollars tomorrow, and 20 dollars the next day is difficult to function.

A contradiction arises here for investors who invest in cryptocurrencies. It is hoped that cryptocurrency will be recognized as a currency and at the same time that the price will skyrocket.

There are places that accept BANTCOIN online or offline, but it is very limited. For this reason, it is often approached as an investment object rather than money.

So, is cryptocurrency a good investment?

Stocks pay dividends, bonds pay interest, and real estate pays rent. However, currency and commodities do not generate any added value. For this reason, investors should only look at price fluctuations caused by external variables and invest.

How much more can we grow in the future?

I thought carefully.

Does what Yezi showed mean that Ethereum is worth mining and holding? Does that mean that the cryptocurrency market will grow bigger in the future?

“Do we have a cryptocurrency exchange?”

Sangyeop senior nodded his head.

“Huh. It’s called Bansom. You told me to invest in the past.”

In the early days, Bantcoin was easily obtained by mining. However, after several halvings, the difficulty has risen to a level that is currently impossible to mine with a personal computer.

For this reason, those who want to invest in BANTCOIN usually purchase it through an exchange. Exchanges connect people who want to buy and sell cryptocurrencies, and receive a fee between them.

The founder of Bansomem was originally a cryptocurrency investor. However, after losing all of his VANT Coins due to the bankruptcy of the Mountain Hill Exchange, he decided to create his own exchange and started a business.

“How many shares does K Company have?”

“Now 63.5 percent.”

When the size of the cryptocurrency market grows, the exchange can unconditionally benefit regardless of fluctuations. Exchanges have a characteristic that the more people trade, the more people flock.

“Strengthen your investment in Bansome. Increase your shares when you issue a rights issue. In order not to fall behind in competition with other exchanges, we need to increase our size.”

“Okay.”

“And buy Bantcoin and Ethereum separately.”

Currently, BANTCOIN is playing the role of a key currency in the cryptocurrency market. If the value of Ethereum went up, it was highly likely that the value of Bantcoin would also go up.

“It would be okay to mine it yourself.”

“I think mining is difficult in Korea.”

Most cryptocurrencies are already impossible to mine with a personal computer. For this reason, professional miners are setting up factories with hundreds of computers dedicated to mining.

In this case, the problem is the electricity bill. If you do it wrong, you may end up spending more on electricity than you get from mining.

“We can build it in another country where electricity is cheaper. Or is it a cold place at all?”

In a cold place, there is no need to run a cooling fan, so electricity bills can be saved that much.

Senior Sangyeop nodded her head and said.

“Do you think you will be okay?”

“Probably for the time being, the market is likely to grow.”

Whether this will end in the bubble of the century like the Dutch tulip bubble or it may settle in the market as an alternative currency, but it is clear that a new investment market has been created.

If you invest now, wouldn’t you be able to see huge profits?

“Doesn’t OTK Company invest?”

I said with a smile.

“The market size is too small for that.”

$30 billion in cash alone. In order to invest, you need a suitable market.

I asked Sangyeop senior.

“Did you find the office building?”

The current building is too small and the security is poor. So, I had to quickly find a suitable place to move.

“I’m looking into it, but I don’t like any of the buildings that are for sale. I looked at a few sites, but the location is not good and it takes a long time to build a new one.”

It is not easy to trade mega buildings because there are limited sellers and buyers.

“The amount doesn’t matter, so buy it at the best possible place. It’s a hassle to move again later.”

Senior Sangyeop nodded her head and said.

“By the way, what are you going to do with the money you earned this time?”

“I’m thinking.”

The common people made a huge amount that could not be imagined.

As Taek-gyu said, the more money you have, the better. However, no matter how much you earn, it is difficult to spend it until you die, and it is not something you can buy and go after you die.

Could you do something better than just make money?

“For the time being, I have to go to school quietly.”

“Is it worth going to school?”

“not too bad.”

Senior Sangyeop said it was a pity.

“I would graduate in just one more year.”

“You don’t want to go back to school?”

At my words, Sangyeop-senpai smirked.

“What is recovery? I’m too busy with what I’m doing right now. And because I couldn’t pay the leave of absence and quit, I’m probably expelled now.”

“I think so.”

Suddenly, I remembered the days when I was active in a club. It seems like just yesterday that he invested 1 million won with trembling.

The person who was the club’s president at the time has now become a representative of one of the most successful investment companies in Korea.

And I became the owner of the company.

“It was really fun in our club.”(Read more @ wuxiax.com)

Senior Sangyeop nodded his head as if sympathizing.

“right. Around this time, we all went to the Han River and had a drink.”

Fortunately, there are still many good people around me.

“When Hyunjoo noona and Eli come over later, we have a chimaek at the Han River.”

“good.”

* * *

After the issue of K Company and Sangyeop senior swept through.

The biggest issue on campus right now was the final exam.

When she first returned to school, she was full of confidence. However, theory and practice are different laws. If you do well for a hundred days in practice, that doesn’t lead to grades.

Fortunately, even if you don’t get good grades, you won’t have any problems.

Professor Myung-Jun Kim, who was teaching management science, his major, said while looking around the students.

“Did you know that Golden Gate is establishing a Korean branch this time? Everyone should get good grades and enter the company.”

Establishing a branch in Korea was also an issue within Hankuk University.

The office building was solved by hiring out the tenants of the existing buildings, but the problem is the manpower.

First, the Asian branch and other branches will recruit the necessary manpower and send them to Korea. The rest of the workforce will be hired from Korea as soon as positions become available.

I don’t know how much Golden Gate will invest in the Korean market, but I was expecting at least 500 to 1,000 people to be hired.

Golden Gate is a dream job for those who want to work in the financial sector. Naturally, the Department of Business Administration and the Department of Economics welcomed it with open arms.

“However, there are some peculiarities here. The first is that the establishment of the branch was done very quickly. Usually, a project that would take more than a year after the announcement is done within a month. Another peculiarity is that the location was decided in Gangnam. In general, private equity funds are located in Gangnam, and Korean securities firms are located in female

By the way, foreign brokerage firms are concentrated in Gwanghwamun. The large building where the Gwanghwamun branch is currently also belongs to Golden Gate, so I think it would be right to enter there.”

Yeouido is the financial center of Korea that everyone knows. The headquarters of major domestic securities companies are all there. However, foreign securities firms prefer Gwanghwamun. The reason is that the embassy is concentrated there.

It is convenient to have an office near the embassy for smooth business processing and for foreign nationals to evacuate to their home countries in case of emergency.

However, contrary to everyone’s expectation that Golden Gate would enter Gwanghwamun, Gangnam was chosen.

Professor Kim Myung-jun looked at me as if he suddenly remembered.

“Ah! After Kang Jin. What do you know?”

For a moment, I was perplexed.

“Yes? What do I hear?”

“Your friend’s older sister works at the Golden Gate Asian branch. Just in case you heard anything.”

“I do not know. I haven’t really heard anything…”

When I heard it, I had my doubts.

Why is the branch establishment proceeding so quickly, and why do they come to Gangnam?

“·················ogue.”

Maybe it’s not because of me?