Most people have rushed to the market due to its high profitability or generally for speculation (Photo: AFP/VNA) Hanoi (VNS/VNA) - Investors ofbitcoin in particular and cryptocurrencies in general should be aware of thepossible risks involved in addition to rapidly increasing profits, experts havewarned.
Speaking at the bitcoin and blockchain wavetalk show held in Hanoi on December 20, experts agreed that State managementagencies should not restrain the market but cannot “ignore” this activity. TheGovernment should quickly complete a legal corridor to deal with its negativeimpacts on the economy.
Nguyen Duy Hung, chairman of Saigon SecuritiesInc (SSI), said bitcoin has been mentioned everywhere, not only in Vietnam orthe US. Statistics from brokerage firms show that the number of people openingbitcoin accounts has increased sharply alongside the four-fold increase inprices in just three months.
“Surging profits from investing in bitcoinhas attracted speculators, but creates possible risks,” Hung said, adding thatthe number of people wanting to invest in bitcoin is increasing continuously.
Blockchain is a disruptive technology thatwill fundamentally change banking as well as many other industries. Bitcoin isan electronic currency that uses blockchain to transfer funds from one party toanother.
Dominik Weil from Bitcoin.vn said theBitcoin Vietnam Company was established four years ago and purchases bitcoin inthe domestic market.
In terms of investment, bitcoin is similarto other investment tools as a form of new asset – investors buy low and sellhigh.
Most people have rushed to the market dueto its high profitability or generally for speculation. They only want to buyand later sell it for higher prices, he said.
Truong Thanh Duc, chairman of BASICO LawFirm, said in theory, bitcoin could collapse overnight as it has no foundationto rely on.
Lawyer Duc said bitcoin is not money. Thereare no specific laws regulating bitcoin. It is not a payment tool, document orlegal asset for payment.
Talking about the bitcoin trend in thefuture, Nguyen Viet Bach from bitcoin.vn said prices would continue upwardsover the next one or two years to reach even 50,000-100,000 USD each.
“However, it could not continue to rise forthe long term as there could be other cryptocurrencies attracting attention.Bitcoin itself could also be divided into different cryptocurrencies,” he said.
A legal framework
Tran Huu Duc, a member of Fintech VietnamClub’s management board, said it was hard to predict the market as it has beenmanipulated. Currently, there are many financial institutions joining themarket, thus making its unpredictable. Bitcoin’s prices totally depend on themarket.
Lawyer Truong Thanh Duc said speculationinto bitcoin has encouraged development of blockchain technologies which haveenormous potential.
Duc did not support the application ofcriminal law onto such speculation.
“People should be aware that investing intobitcoin is extremely adventurous. The Vietnamese laws do not officially allowbitcoin transaction floors at brokerage firms and financial institutions.Bitcoin is prohibited in payment activities,” he said.
Hung from SSI agreed, saying that bitcoinhas not been considered as money as it must be recognised by countries and havean exchange rate. Most people consider it a speculation product.
“The Government should have solutions todifferentiate genuine investors from people taking advantage of the system toturn bitcoin into a multi-level marketing scheme or anonymous money transfer,”he said.
He also suggested having State managementon activities to prevent possible risks, because if the bitcoin bubble bursts,it could adversely affect the economy.
This is also a financial trading activitywhich requires conditions. When foreseeing risks, the State should enhance itsmanagement. If the Government does not have a legal framework, it may not beable to protect people from possible fraud, he added.
Bitcoin and cryptocurrencies have been ahot topic among investors this year. The trend has sparked a fever worldwide,attracting thousands of new traders every day and pushing the market scale intohundreds of billions of US dollars.
Vietnam is considered one of the mostcrowded bitcoin markets in the world. - VNA
Speaking at the bitcoin and blockchain wavetalk show held in Hanoi on December 20, experts agreed that State managementagencies should not restrain the market but cannot “ignore” this activity. TheGovernment should quickly complete a legal corridor to deal with its negativeimpacts on the economy.
Nguyen Duy Hung, chairman of Saigon SecuritiesInc (SSI), said bitcoin has been mentioned everywhere, not only in Vietnam orthe US. Statistics from brokerage firms show that the number of people openingbitcoin accounts has increased sharply alongside the four-fold increase inprices in just three months.
“Surging profits from investing in bitcoinhas attracted speculators, but creates possible risks,” Hung said, adding thatthe number of people wanting to invest in bitcoin is increasing continuously.
Blockchain is a disruptive technology thatwill fundamentally change banking as well as many other industries. Bitcoin isan electronic currency that uses blockchain to transfer funds from one party toanother.
Dominik Weil from Bitcoin.vn said theBitcoin Vietnam Company was established four years ago and purchases bitcoin inthe domestic market.
In terms of investment, bitcoin is similarto other investment tools as a form of new asset – investors buy low and sellhigh.
Most people have rushed to the market dueto its high profitability or generally for speculation. They only want to buyand later sell it for higher prices, he said.
Truong Thanh Duc, chairman of BASICO LawFirm, said in theory, bitcoin could collapse overnight as it has no foundationto rely on.
Lawyer Duc said bitcoin is not money. Thereare no specific laws regulating bitcoin. It is not a payment tool, document orlegal asset for payment.
Talking about the bitcoin trend in thefuture, Nguyen Viet Bach from bitcoin.vn said prices would continue upwardsover the next one or two years to reach even 50,000-100,000 USD each.
“However, it could not continue to rise forthe long term as there could be other cryptocurrencies attracting attention.Bitcoin itself could also be divided into different cryptocurrencies,” he said.
A legal framework
Tran Huu Duc, a member of Fintech VietnamClub’s management board, said it was hard to predict the market as it has beenmanipulated. Currently, there are many financial institutions joining themarket, thus making its unpredictable. Bitcoin’s prices totally depend on themarket.
Lawyer Truong Thanh Duc said speculationinto bitcoin has encouraged development of blockchain technologies which haveenormous potential.
Duc did not support the application ofcriminal law onto such speculation.
“People should be aware that investing intobitcoin is extremely adventurous. The Vietnamese laws do not officially allowbitcoin transaction floors at brokerage firms and financial institutions.Bitcoin is prohibited in payment activities,” he said.
Hung from SSI agreed, saying that bitcoinhas not been considered as money as it must be recognised by countries and havean exchange rate. Most people consider it a speculation product.
“The Government should have solutions todifferentiate genuine investors from people taking advantage of the system toturn bitcoin into a multi-level marketing scheme or anonymous money transfer,”he said.
He also suggested having State managementon activities to prevent possible risks, because if the bitcoin bubble bursts,it could adversely affect the economy.
This is also a financial trading activitywhich requires conditions. When foreseeing risks, the State should enhance itsmanagement. If the Government does not have a legal framework, it may not beable to protect people from possible fraud, he added.
Bitcoin and cryptocurrencies have been ahot topic among investors this year. The trend has sparked a fever worldwide,attracting thousands of new traders every day and pushing the market scale intohundreds of billions of US dollars.
Vietnam is considered one of the mostcrowded bitcoin markets in the world. - VNA
VNA
