Investor That Can See The Future

Chapter 218

Revenue is the money a company earns from selling goods or services.

For example, if you sell a 100 won ballpoint pen, you get 100 won as sales, but if you spend 90 won for raw materials, labor costs, and distribution costs, the actual amount left is 10 won.

This $10 is just a profit.

Under normal circumstances, profits can never exceed sales. In the case of industries with relatively low cost, such as games and software, profits may exceed tens of percent, but most manufacturing industries are around 10 percent.

Fortunately, this is also the case for large companies, and the number of small and medium-sized enterprises is less than 5%.

I asked absurdly.

“How can profits be greater than sales?”

Sangyeop senior answered.

“That is the novelty of this market.”

Cryptocurrency exchanges also receive commissions just as securities firms receive commissions from stock trading.

Although each brokerage company is different, the stock transaction cost is about 0.4%. But bansom is 1%.

If you look at it this way, it seems that the difference is about 2.5 times, but there is a trap hidden here. 0.3 percent of stock transaction costs are taxes paid to the government, and brokerage commission fees are less than 0.1 percent.

On the other hand, since there is no tax on cryptocurrency trading, the transaction cost is entirely the exchange’s profit. In fact, cryptocurrency investors are paying 10 times more fees than stocks.

In fact, it was no different, but there were no complaints. The reason is that the coin continues to skyrocket.

You make a ton of money just by buying it, but what does that matter, no matter how much the fee is?

“You don’t get the commission in money, but it is deducted from the coins you trade.”

For example, if you buy and sell 1 BNT, the exchange deducts 0.01 BNT, and so on.

Most of the operating costs of the exchange are labor costs and server operating costs. As the cost is low, the operating profit margin exceeds 50% even under normal circumstances. However, recently, the price of cryptocurrency has risen sharply.

I received 10,000 won worth of coins as a fee, but when I settled down, it turned out to be 20,000 won. So, even after deducting various expenses, the profit outweighed the sales.

Taek-gyu heard the story.

“It’s a crazy market.”

* * *

After hitting $10,000, Vantcoin surpassed $15,000 in just a few days, and is now predicted to exceed $20,000.

It is no exaggeration to say that the cryptocurrency market has been engulfed in madness since the end of last year. Because of this, there were many opinions that the bubble would burst, but on the contrary, the size of the market doubled.

Governments, financial institutions, and financial companies around the world have been busy preparing countermeasures.

We also got together and held a countermeasure meeting. The meeting was attended by me, Taek-gyu, Hyun-joo noona, Eli, Sang-yeop senior, and Henry.

Hyunjoo’s older sister smoked a cigarette and said.

“After listening to you, you did a good job of investing even 30 billion won. It’s more than five times higher now.”

Taehyung nodded his head.

“Look. I told you to listen to Jinhoo.”

Money goes wherever it is profitable. However, even hedge funds have taken a cautious or negative attitude towards cryptocurrencies. This is because the risk associated with the investment is too great.

said Ellie.

“Not long ago, Warren Boat. Cryptocurrency is like rat poison, and it will surely come to an end. He also said that he would be willing to invest if there was a five-year put option for Vantcoin.”

Not just cryptocurrencies, Warren Boat doesn’t really like investing in commodities.

Stocks pay dividends, bonds pay interest, and real estate pays rent. But if you buy 1 ounce of gold, 1 year later, you still have 1 ounce of gold.

It is only expected that the value will rise due to inflation or supply and demand factors. In other words, you can only make a profit if someone buys it more expensively. This is also true of cryptocurrencies.

I nodded.

“It seems to be a bubble.”

Taek-gyu also helped.

“I think so.”

Although many financial experts are gathered here, it is none other than Taek-gyu who first encountered cryptocurrency and made a huge profit from it.

Hyunjoo’s older sister said.

“It’s a good thing it’s small for a bubble.”

“It is.”

The biggest bubble in human history was, of course, the global financial crisis in 2008. The crisis that began with the collapse of real estate in the United States quickly spread around the world, causing enormous damage.

The second is the Japanese real estate bubble that occurred in 1991. At the peak of the bubble, it was said that if you sell Tokyo, you can buy the United States. However, the bubble burst in an instant, and Japan entered a long-term recession for 20 years.

There is one big difference between the bubbles that have occurred so far and the cryptocurrency bubble. It is just whether or not to integrate with the existing system.

The worst is for the government to step in and grow the bubble.

At the beginning of the 18th century, a financier named John Law appeared in France. He founded Bank General with the government’s permission, and the French government accepted only the currency issued by Bank General as tax.

After that, John Law established Mississippi Corporation and continued to increase the issuance of money by exchanging stocks for government bonds.

However, the Mississippi Corporation was nothing more than a non-profit offshore company, and the money supply rapidly increased, causing huge inflation.

Eventually the bubble burst and the French financial system was completely shattered.

If the government had stepped forward and offered to receive taxes in BANTCOIN like it did then, it might have exceeded $100,000.

Existing bubbles have arisen within the institutional framework, whereas cryptocurrencies are the opposite.

The government cannot welcome cryptocurrency that aims for decentralization and decentralization. Thanks to this, a bubble that shook the financial system did not occur.

I asked.

“How much more will we go up from here?”

Hyunjoo’s older sister said.

“There was talk that it would go up 30 times more in the future.”

“why?”

“The market capitalization of gold is $6 trillion, so Vantcoin should be like that.”

Currently, the market cap of BANTCOIN is about 3-4% of that of gold. So, the logic is that to replace gold, it should rise 30 times in the future.

If you think about it coolly, the premise that BANTCOIN will replace gold was wrong, but investors who actually invested in cryptocurrency believed this story. If it’s on the upswing right now, it seems like it might be possible.

Originally, the bubble feeds on dreams and grows.

Sangyeop senior said.

“The investment frenzy is a global phenomenon, but Korea is particularly severe.”

Previously, Korea had a higher cryptocurrency market price than other countries, and this was called Kimchi Premium. However, until recently, it was around 5-10%, now it has risen to 30%.

Since the market price is not linked to each exchange, it is not uncommon for exchanges in Korea to have quite a price difference. That’s a difference of 1 or 2 percent, though.

Theoretically, it means that if you buy Vantcoin on the US exchange and sell it directly on the Korean exchange, you can earn 30% immediately.

Of course, doing so is not easy because it involves complicated procedures such as opening a US account and remittance overseas, and costs are incurred.

Taek-gyu narrowed his eyes and said.

“In other words, if you buy on the Korea Exchange and sell it on the US Exchange, isn’t it that you lose 30%?”

Surprisingly, you got the point right.

If the price of the same good is different, selling the expensive one and buying the cheaper one is the basis of arbitrage trading.

In Korea, however, the situation is the opposite. Even though the same coin was as expensive as 30%, the purchase process did not stop.

said Ellie.

“Actually, that happened a while ago.”

Some Japanese entered Korea with Bantcoins purchased from the relatively cheap Japanese exchanges and sold Bantcoins on the Korean exchanges. After that, he bought gold bars with the sale price of 10 billion won and returned to Japan.

In conclusion, BANT Coins flowed into Korea and gold flowed out. Can digital gold be exchanged for physical gold? Is this the 21st century alchemy?

Bubbles increase in volume as the price rises. In order for the price to continue to rise, investment money must be constantly flowing in from the outside. Fortunately or unfortunately, individuals came in with money.

The people who watched the price skyrocket will jump in before the price rises further. I even felt a sense of crisis that I could not live without now.

It doesn’t matter why it rises or what its actual value is. When the price goes up, the buy follows, and when the buy catches up, the price goes up.

Taegyu said.

“At this point, it’s like gambling.”

Whether gambling or investing, the one with more capital has an advantage.

The big players in the cryptocurrency market are called Whales, and in the case of Bantcoin, about 1000 whales hold 40% of the total coins (we are also one of those whales).

It is a game that an individual cannot win from the beginning because a small number of forces can control the market.

Of course, someone will make a lot of money, but that’s very few. Most of you will lose the money you invested.

As the cryptocurrency market continued to grow and the number of investors increased, governments around the world also struggled with how to respond.

The United States defined cryptocurrency as a commodity and even allowed futures trading on the Chicago Exchange. Japan also introduced the exchange into the system by accrediting exchanges, establishing a supervisory authority, and collecting taxes.

Most countries are in the mood to allow trade, but China has implemented a total lockdown. All exchanges were suspended and the operation of mining farms was also banned. Small exchanges were closed due to strong government regulations, and large exchanges were moved to Hong Kong or Singapore.

So what about Korea?(Read more @ wuxiax.com)

did nothing

There are several reasons for this, but the biggest is the regime’s lame duck. Currently, the administration is virtually on closure. You can continue to handle existing business as usual, but you have not touched any new pending issues.

After all, after a change of government, something can be expected to be done. By then it will already be too late.

“I checked before coming, and the coin price that K Company currently owns is $13 billion.”

We were surprised by Sangyeop’s words.

I knew it went up, but it must have been this much!

“Wasn’t it 2.5 billion dollars last time?”

K Company invested 1 billion dollars. Sangyeop senior was in charge of investing in cryptocurrency, and the investment was made in three forms.

The first was to increase the stake to 85 percent by purchasing an additional stake in Bansomem, and the second to purchase Bantcoin, Ethereum, and newly issued altcoins from overseas exchanges. Finally, he set up a mining farm abroad.

Tens of thousands of computers are lined up endlessly in the mining farm. I’ve only seen it in pictures, and it’s pretty spectacular.

Just as a miner mines gold in a mine, a computer mines coins in the digital world. Literally, it is mining. Currently, the mining volume itself is decreasing due to competition among companies, but profits are continuously increasing due to the price increase.

These coins are assets that are not held in the ledger. If you turn this into cash, you will have to recalculate the value of K Company.

said Henry.

“The valuation is the same, but if you actually sell it, you won’t be able to get even half of it.”

Senior Sangyeop agreed.

“At least, Vantcoin and Ethereum will be consumed to a certain extent, but altcoins with small market caps will plummet as soon as they are sold in large quantities.”

No matter how large the cryptocurrency market cap, it is not comparable to the stock or bond market. If K Company disposes of the coins it owns, the entire market will falter.

Hyunjoo noona said as she turned off her cigarette.

“The only chance a whale has to escape a pond is when it rains.”

When a large whale tries to escape from the pond on a sunny day, the water level drops sharply, which is dangerous. So when it rains and the water level rises, you have to get out.

There is no doubt that the current situation is a bubble. The important thing is the timing to get out.

At that moment, something flashed in front of my eyes.

When I woke up, everyone’s eyes were on me.

“What are you thinking about?”

I said calmly as if nothing had happened.

“I will dispose of it from now on.”