Chapter 68

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Translated by Heavenly Cat

Read it only at Novelbyu.com & Utoon.net

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“Wow.. $700.”

“If someone bought at $300, they’d already have more than doubled their money.”

“This is really insane. Isn’t this madness?”

The number of bitcoins mined so far is 15 million.

The issuance limit is set at 21 million.

“Then only 6 million are left now?”

“Yeah. But they say it’ll take at least until 2140 to mine them all.”

“What? That long? When only 6 million are left?”

“Halving, I think? That setting is included together, so the more they mine, the slower the speed becomes.”

At first, employees were also full of negative views about Bitcoin.

But once they looked into it, the system was better made than expected.

To preserve scarcity and prevent inflation, they limited it to 21 million, and even added halving to prevent all the supply from being released at once.

Also, Bitcoin’s blockchain system was designed not to be breached by hackers.

However, occasionally stories are heard that exchanges got hacked and had bitcoins stolen. This isn’t because Bitcoin itself was hacked, but because the vault of the exchange storing that Bitcoin was robbed.

In other words, if you thoroughly secure the exchange, it’s safe.

“Plus though 15 million were released, only about 7 million are actually in circulation.”

Bitcoin had far fewer numbers circulating than expected.

Some people are holding long-term, and above all, many forgot and threw away bitcoins they mined long ago, or lost their Bitcoin holding keys and can’t do anything either way.

“When the exchange first opened, employees were also extremely anxious. Wondering if the exchange would close soon and everyone would get fired.”

After KW Exchange opened.

The number of new signups on opening day was only 100.

That day, KW Exchange employees trembled in fear.

Because it looked like not even their salaries, let alone server costs, would be covered.

But starting with India’s rupee reform, as currency changes occurred in various countries, the situation changed.

As currencies used as black money changed in value or were blocked from further use, people who managed black money with various currencies and assets started looking for new alternatives.

And their target became exactly Bitcoin.

Trying to dig up black money only to make the money bury itself in an even deeper place.

But people handling black money also didn’t predict one thing.

That as black money concentrated in Bitcoin, prices would naturally rise, and that would become the fuse for a Bitcoin boom.

“But Bitcoin. It’ll smoothly break $1,000, right?”

“$1,000 will just happen. Look at the trading volume now. It’s insane. Moreover, our KW Exchange membership already broke 1 million.”

KW Exchange, which until now had no new signups and no one trading, was now flooded with people to the degree the server might burst.

“But did the president know it would turn out like this?”

“Of course. The president told us to make as many servers as possible before creating the exchange. Thanks to that, even with 1 million people flooding in short-term, the servers are stable.”

With the sudden Bitcoin craze, everyone rushed to exchanges.

But they all couldn’t handle that much demand and servers died.

However, KW Exchange, which had servers robustly prepared even before opening, had no problems.

So even more members increased in a short time.

“Is that all? Through partnerships with overseas exchanges, there’s nowhere domestically selling hundreds of coins like us.”

Plus what made KW Exchange attractive was the far greater variety of coins compared to other exchanges.

“Ah. Should I buy some even now?”

“That won’t do. The president already issued guidelines. Employees working in our group absolutely cannot buy Bitcoin.”

Bitcoin exchanges outwardly look like complete lawless zones.

But to open an exchange requires going through quite complex screening processes.

Also, since internal employees could use the exchange to manipulate prices, related employees absolutely cannot buy Bitcoin.

That was a clause that comes with opening an exchange.

“But if the president predicted Bitcoin would rise like this, wouldn’t buying Bitcoin rather than an exchange have been better?”

“Well, there’d be several reasons. First, before Bitcoin rose this much, the supply wasn’t that large either. It’s a place where absorbing even 1 trillion won was difficult.”

Though the Bitcoin market is suddenly growing, even now it’s a place where handling 1 trillion won is difficult. But if you combine Bitcoin and altcoins, the story changes again.

“If they had bought up all Bitcoin and altcoins, prices might not have risen like now.”

“That’s true too.”

“And how could ordinary people like us fathom the president’s intentions? He surely saw something we can’t see and opened the exchange. Look even now. We’re not doing anything, but commission fees are pouring crazily into the exchange, right? We even only invested 100 billion won.”

Employees who trembled wondering if the exchange would close on first opening are now working frantically.

Rather, talk is coming out that they need to hire additional personnel here.

At this rate, the investment seemed like it would be recovered quickly.

“But other securities firms also are putting all their money there because the Bitcoin craze is stronger than expected.”

“Honestly, except for our Gwangwoon, all other securities firms are probably putting money in.”

Securities firms that smelled money already started putting money into Bitcoin.

Also, asset management firms were releasing products keeping pace with this trend.

But because Gwangwoon operates an exchange, products and investments related to that are completely prohibited.

Other securities firms keep creating products with Bitcoin, yet Gwangwoon itself can’t do anything.

“Hey. I said earlier. The president has everything thought out. Ordinary people like us can’t know even if we die and wake up.”

***

“…”

It hurts.

My stomach hurts.

Bitcoin that went down to $300 exceeded $700 and finally reached $1,000.

At this momentum, it looked like $2,000 was sufficiently possible.

Plus since the leader called Bitcoin is rising, altcoins below it are also rising together.

So I felt a bit regretful.

Should I have put money into Bitcoin rather than opening an exchange?

Though the market was small to put in large money at that time.

But at that time, my intuition didn’t react to buying Bitcoin.

So I didn’t buy it.

Because of that, while other investment companies all have feet in Bitcoin, only our Gwangwoon can’t.

But such regretful thoughts were brief.

“President! Did, did you see the news!”

Employees gathered in the president’s office.

“Yes. I’m watching now.”

[The market is excessively overheated, showing a whopping 20-30% or more price difference compared to overseas, and for investor protection and market stability, we felt financial regulation is absolutely necessary.]

Currently the Bitcoin price being traded at our KW Exchange differs by a whopping 30% from overseas prices.

The so-called kimchi premium.

Moreover, the government wasn’t just watching as money excessively concentrates in Bitcoin and black money is focused there.

[From now on, to trade cryptocurrency there must be a real-name verification deposit/withdrawal account system, virtual accounts are prohibited, and minors and foreigners are also prohibited from trading. Also, tax audits on cryptocurrency exchanges will be fully implemented.]

Up to here was actually okay.

Even if they conduct tax audits, what would they squeeze from a place that just opened?

The next part was the problem.

[Also, we plan to simultaneously halt cryptocurrency trading by our country’s financial companies.]

This was the decisive blow.

They completely prohibited our country’s securities firms and asset management firms from entering a market with no safety measures whatsoever.

“What’s the market situation now?”

“Everyone’s panicking. Because the announcement came suddenly without notice. Financial firms that put money into Bitcoin all have to throw away their holdings, so they’re resisting, but the government’s stance right now is firm.”

The Bitcoin craze was also a big controversy in our country.

Whether it’s okay to view virtual currency with no financial safety measures as real financial products, whether to view this as a scam, etc.

Voices saying financial regulation is absolutely necessary were also high.

So everyone thought the government would regulate to some degree, but didn’t know they’d suddenly impose regulations like this.

Plus from now on, Bitcoin futures trading is completely prohibited.

You can’t even go short with leverage.

They’re regulating so you can only go long.

“The price already dropped 20%. The kimchi premium attached will all disappear with this incident.”

“No way. They’re normalizing it like this.”

“But if they block shorting, won’t there be damage to us too? Like using other overseas exchanges..”

To some degree there could be defectors.

But not using the officially permitted won market in Korea and using overseas exchanges is quite cumbersome.

Moreover, going short with leverage is really gambling that can go straight to the Han River, so it’s better not to even dip your feet in.

“At this rate, Bitcoin $2,000 is out of reach.”

“Who knows. Even if the kimchi premium drops, trading is still active overseas.”

“I heard not only our country but overseas will also have Bitcoin regulations soon. Won’t that brake prices?”

“Ugh. That won’t do. Then our exchange will just make money briefly then have only flies buzzing again.”

That was a bit worrying.

Even though Korea is so sensitive about finance that they hurriedly issued regulations, other countries also had high possibility of doing that.

Because everyone knows black money is gathered in Bitcoin.

In other words, Bitcoin that broke $1,000 now could fall back to $100 anytime. If that happens, our exchange that’s thriving would likely return to a level where server costs aren’t even covered.

“President, what do you think is Bitcoin’s appropriate price?”

Employees all looked at me in unison.

“I..”

Honestly in my personal opinion, $1,000 was already a very high price.

But what I learned living in the world is that something’s price is often divorced from my rationality.

“…”

I tried writing Bitcoin prices one by one.

Two thousand, three thousand, four thousand, five thousand.

No matter how much I raised the price, there was no feeling.

When I thought maybe I set it too high.

“..?”

At $10,000, a very slight feeling came.

‘Over $10,000?’

That can’t be.

Even reaching $10,000 would be fainting material, yet getting such a weak feeling here means an even higher price.

‘Then maybe up to $20,000?’

I raised the price greatly once more.

But this time too, my intuition gave weak feedback.

30,000.. 40,000.. 50,000..

The feedback strength was still the same.

So now I was scared to write the next amount.

‘H-how far will it rise?’

***

Bitcoin’s untimely craze.

To mine Bitcoin, you need GPUs.

So GPU production companies naturally had to smile.

But Amvidia, which dominates 80% of the global GPU market, was smiling outwardly but crying blood tears inwardly.

“We’ve really reached the limit. At this rate, producing the new Exforce series to be released will be impossible.”

The Bitcoin craze caused a GPU crisis.

Accordingly, Amvidia’s stock price soared, and products all sold out.

The problem was that they couldn’t make existing series and next series products.

“TSNC absolutely can’t hand over products?”

“The loss at Tianjin Port once was big, and above all, the Chinese government continuously threatening air routes also played a big role. Plus sea routes are also completely blocked.”

Amvidia CEO Tony Huang was having headaches.

To make graphics cards, TSNC must make semiconductor chips and hand them over.

Taiwan being TSNC’s roots, and being a place that only does foundry, until now there was never disruption in product production.

But from one day, suddenly connection with TSNC was cut.

They’re somehow sending products, but can’t even meet 50% of orders.

“They’re rerouting various ways to send products to us. But right now Gwangwoon Shipping is intentionally cutting off all shipping volume going to TSNC, so TSNC wants to make semiconductors but can’t produce because there are no raw materials.”

TSNC making semiconductors and sending them is somehow solvable.

Though China is threatening flight paths, they don’t actually shoot down planes.

The real problem was raw materials.

To make semiconductors requires various raw materials: silicon wafers, special gases, chemical substances, photoresist, etc.

And to obtain these, they must import raw materials from many countries including America, Netherlands, Japan, Germany.

To receive those requires using sea routes, and exactly that path got blocked. Because of a company called Gwangwoon that’s dominating all shipping business.

“Rumor has it that Kangsung Group joined hands with Gwangwoon to intentionally dry up and kill TSNC. Plus the Chinese government is even helping behind the scenes.”

“Even the Chinese government? Why on earth?”

“Well, there’d be various reasons. Taiwan’s president rejecting One China would be one reason. Above all, talk keeps coming since the Tianjin Port explosion that there’s some cooperation between Gwangwoon and the Chinese government.”

China the sky, Gwangwoon the sea.

And Kangsung new foundry business.

As these three forces combined power, even the giant foundry company TSNC couldn’t breathe.

This isn’t only TSNC’s problem.

Ampl and Quincom, which cooperate with that place to produce products, also got fire on their feet.

At this rate, those two companies seemed to need to change their stance of pushing out Kangsung and insisting only on TSNC until now.

In other words, the ironic situation comes where they must reluctantly entrust semiconductor chips to competitors.

“CEO. You really should have a conversation. Already talk is spreading that AMC’s graphics cards have better efficiency than our products for Bitcoin mining.”

AMC.

The world’s second-largest GPU company.

But though called second, with Amvidia already dominating 80%, it’s at a negligible level.

AMC even has considerable deficits, so it wouldn’t be strange if they closed tomorrow.

But you never know about world affairs.

If TSNC can’t escape that pressure and closes doors like that, Amvidia, which has everything aligned with them, will also receive tremendous damage.

Then even if not right now, they could gradually lose pie to competing companies and eventually be overtaken.

“We must prevent that.”

So Tony Huang had to resolve this matter even by stepping forward himself.

“Who should I go to? Kangsung?”

“Shouldn’t you visit Gwangwoon rather than Kangsung?”

“Gwangwoon?”

“Yes. The reason Kangsung can come out like that is ultimately because they established a European foundry company, which was possible because Deutsche Bank went bankrupt. And talk is also circulating that Gwangwoon played a decisive role in that bankruptcy.”

In other words, behind all these events is Gwangwoon.

What kind of company is it that its influence reaches Asia, Europe, and even America?

“Phew.”

Actually he didn’t want to go to Korea directly.

In the early 2000s, when Amvidia was struggling.

Because the memory remained like trauma that he went to Korea pleading for investment but everyone refused.

So resentment toward Korea still remained.

Yet having to go to Korea again and bow his head.

“Contact Gwangwoon. Say I’ll personally fly to Korea to meet.”

Whatever bastard is grasping and shaking the semiconductor market.

He really wanted to see that face.