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A blast

Vietnamese Tet: Don’t take out the garbage!

February 11, 2021 by tuoitrenews.vn

Each year, the Lunar New Year creeps up on us, slowly bubbling up to a dramatic apex, then, just like that, the new moon begins, signaling the start of a fresh chapter. Last year was definitely the Year of the Rat, sneaky, slimy, and carrier of scary diseases.

Phew! How glad we all are to see that water buffalo coming at us for this year.

And it’s a golden buffalo to boot!

Through some nuance between the zodiac signs and their complementing elements, this year represents metal, specifically gold, so, sit back and relax, we’ll all finally become wealthy this time around.

As Tet looms nearer, it’s a game akin to musical chairs, the music suddenly cut off when one business after another bangs down its shutters to begin preparation for the big event.

We sense it and feel it; as traffic picks up, the general level of intensity grows, the card games in cafés are more numerous and raucous, and people shop until they drop.

It makes perfect sense that it’s such an epic event – it’s Thanksgiving (celebrated in various forms in some countries), Christmas, and New Year (per the Gregorian calendar) all rolled together, and don’t forget to toss in Valentine’s Day this year since it’s right after Tet.

I usually duck out of the country as Tet looms, mainly because I don’t have family obligations, and, I confess, because by the time it rolls around I know I’ll scream if I see one more orchid or cherry tree. It’s also nice to get out of the way so Vietnamese people can enjoy the celebration to the max and take time off after a year of hard work.

It took me several years to get ahead of the game for my annual exodus abroad. I cut it close a few times, then allocated more time, arriving at the airport over three hours before take-off, yet barely making my flight. Lesson learned, since then I leave a full two weeks before and return at the earliest two weeks after, but this year, of course, there’s no such overseas trip.

One of the signs indicating it’s time for me to hit the road is when half of the motorbikes have some sort of foliage hanging off them – flowers, trees, shrubs, bushes, you name it. Toss on a sack of rice, some of the trendiest fruits, and you’re good to go.

Kumquat tree farm

Kumquat tree farm

Offerings include plants, fruit, flowers, and trees, and there are lots of them, all with particular nuances and purposes, most of which escape me.

Gift baskets – now that’s tricky business to say the least – akin to going on a package vacation where meals are included. You never really know what you get until it’s too late, but for sure the baskets look flash, and that’s half the battle right there.

Tet gift basket

Tet gift basket

Debts are cleared, bills are paid, families remember deceased relatives by cleaning up and decorating their resting places, and parts of the house you never visit are scrubbed spotless where they will sit idle collecting dust until the same time next year.

Cupboards are stocked up to the rafters. I’ve seen more boxes of Choco Pies and huge bags of rice over the last week than during the prior three months combined. Judging by the strained expressions on people’s faces as they haul those heavy sacks, the traditional acupuncture specialists must be making a killing.

Tenuous relationships are cobbled back together (or not, depending on the gravity of the tiff), ensuring a peaceful holiday season for all. Oh, how we all know the tension around the holiday table – so thick you could cut it with a knife – that’s a universal one. There’s  a dreaded family member in every clan  that drives the whole gang crazy, that’s just part of the deal.

The entire celebration is masterfully orchestrated with no loose ends left because there is no room for procrastination, the hourglass runs dry. All must be done, on time, and impeccably.

Seasonal tasks are carefully allocated one of two time slots for completion:  BT and AT (Before and After Tet), with tasks designated as BT mandatory for completion by the big day, or there’s hell to pay.

AT is another attribute altogether, a vague reference to a point in time after Tet at which time tasks may be due, but then again they may never be completed, or even started, perpetually retaining the status of ‘to do soon.’

Each day leading up to Tet some facet of our daily life – a shop, restaurant, or a service – disappears into thin air without warning. The other day I wandered off to coffee headquarters only to find it shuttered and abandoned, the staff having bolted for their hometowns for the holidays.

I recoiled in horror, then gingerly pulled myself together, and headed down the street to Backup HQ, which I had scouted out for just such a rainy day.

Everyone forges ahead, giving gifts to neighbors, preparing festive goodies, and generally being downright chummy all around. Most of the goodies are familiar, such as ‘banh tet,’ the savory sticky rice-based treat wrapped in banana leaves, but each year a new one pops up.

Check out this ‘chuoi chanh len men’ (fermented lemon and banana), not a Tet specialty as such, but such a concoction fits well with this season dedicated to preparing foods that fester, foam, and gurgle for weeks until they reach their peak.

Scary fermented lemon and banana

Scary fermented lemon and banana

My friend prepared that concoction, waiting the mandatory 21 days before letting me near it, and when the lid was unscrewed a pungent aroma similar to rocket fuel blasted out of the jar and filled the room in no time, forcing me to flee the scene. I’m an adventurous eater, but sometimes there is a cost involved when it’s food, so I had to pass on that one.

When the big day finally rolls around, the family gathers, following many rituals, prayers, a visit or two to the temple, and eats enough food to sink a ship. The day features continuous eating, drinking, playing cards, peppered with the rekindling of an old family argument or two since the gang is finally under one roof.

There are some important rituals to be followed, such as avoiding being the first person to enter someone’s house on the first day of the new lunar year. Be careful, this one’s a bomb waiting to go off, because if you’re first to arrive and the house owner has a bad year, you’ll never hear the end of it.

It is a judgment call to some degree because should you bring the owner good luck, then you’ll get all the credit, at least in theory, plus, maybe a reward or gift, so size it up, roll the dice and hope for the best.

I’ll soon find out, because I received an invitation to visit friends during the ‘afternoon’ of New Year’s Day. You can imagine I’ll be showing up late just to be safe, maybe at 5:00 pm, to be completely certain I’m not the first guest.

Otherwise, this whole Tet celebration is clearly a ‘lead, follow, or get out of the way’ situation. That’s an easy choice as a foreign guest, so I bolt the door and relax, while bearing in mind to not take the garbage out or sweep the floor, at least on the first day of the New Year, according to tradition of course.

Filed Under: City Diary Vietnam Life - Vietnamese Tet: Don’t take out the garbage!, TTNTAG, vietnamese tet 2017, Tet Vietnamese

Celebrating Lunar New Year as a foreigner calling Vietnam second home

February 11, 2021 by www.vir.com.vn

celebrating lunar new year as a foreigner calling vietnam second home
Visiting flower street to enjoy the festive atmosphere

I always enjoy Tet (Lunar New Year) in Vietnam and I have spent Tet, here in Vietnam, for most of the 28 years I have been living here full time. It is a time of enjoyment for all Vietnamese and I also enjoy the atmosphere and the customs associated with Tet and family.

I like the flower streets that spring up and in particular, the Nguyen Hue walking street, so much thought and work go into the brilliant displays. I enjoy the special food, which are treats for Tet, particularly the bánh chưng, bánh tét and Xoi plus the various candies and fruits. I also enjoy soaking up the family atmosphere and watching the kids in their new clothes and the general excitement that goes with the first day of the Lunar New Year.

celebrating lunar new year as a foreigner calling vietnam second home
Tet Holiday is a special time for family

Normally, we have a fairly set routine for Tet which includes watching the New Year’s Eve fireworks with friends at our apartment, where we have always enjoyed a view over District 1 and or Landmark 81 (in recent years).

On New Years’ day after opening the office with a traditional Vietnamese altar table, we drive to my wife’s parents in Hoc Mon and celebrate with the family which has grown over the years. We make a few temple and family visits and inevitably play cards with the karaoke at full blast (of course!!).

celebrating lunar new year as a foreigner calling vietnam second home
Get together with friends to watch the New Year’s Eve fireworks

Prospect for New Year

As far as concerns for business generally, in 2021 it is the unknown impact of the continued COVID-19 pandemic and when the tourism and hospitality industry will see light at the end of the dark tunnel. For our business, so far touch wood, we have been largely unaffected. Although some service lines have been adversely impacted, others have performed better than expected, so overall our business has performed in line or ahead of budget and we do expect this to continue. Of course, we have to monitor trends very closely and there is no room for complacency.

The Vietnamese economy in 2020 was a standout performer and I fully expect there to be more of the same this year. Most financial commentators are forecasting growth higher than the government’s 6-6.5 per cent, including the World Bank (6.8 per cent), HSBC (7.5 per cent), and Standard Chartered (7.8 per cent).

There are a number of factors that I expect to drive this growth, which include continuing and increased foreign direct investment (FDI), export growth, and recently signed free trade agreements (FTAs).

According to a recent Economic Intelligence Report, Vietnam has emerged as an attractive FDI destination in Asia, recording a better performance than China and India when measuring FDI as a percentage of GDP. Vietnam has become a new hub for low-cost manufacturing in Asian supply chains, the report says.

Factors that make Vietnam better than its peers are the incentives for international firms for setting up units to manufacture high-tech products, the pool of low-cost workers, and the proliferation of FTAs.

The recent FTA between Vietnam and the European Union has benefitted the country, as the EU lifted 85 per cent of its tariffs on Vietnamese goods in 2020 and socio-political stability and population structure has helped win investors’ trust in the Vietnamese market. More recently, the signature of the UK Vietnam FTA will continue the benefits previously enjoyed under the EU Vietnam FTA. Again of course, COVID is still very much in evidence and may pose some challenges to the forecast growth.

Filed Under: Uncategorized Grant Thornton Vietnam, lunar new year, FDI, investment, Society, Lunar New..., chinese lunar new year, the lunar new year, lunar new year 2018, lunar new year 2017, lunar new year korea, lunar new year stamps, lunar new year overwatch, mongolian lunar new year, celebrate chinese new year, how to celebrate chinese new year, Lunar New Year Food

Visitors can visit One Pillar Pagoda in Hanoi via virtual reality technology

November 25, 2020 by hanoitimes.vn

The Hanoitimes – The exhibition will last until November 30 at the Vietnam Fine Arts Museum, Hanoi.

Visitors to Hanoi have the opportunity to see the One Pillar Pagoda – Dien Huu in the Ly dynasty (1009-1226) through virtual reality (VR) technology at the Vietnam Museum of Fine Arts in the frame of an ongoing exhibition there.

An image of One Pillar Pagoda restored via VR

The exhibition was jointly organized by the Vietnam Fine Arts Museum and SEN Heritage in celebration with 75 years of anniversary of President Ho Chi Minh’s signing Decree No. 65/SL on the preservation of national cultural monuments and heritage (November 23, 1945 – November 23, 2020).

Visitors at this exhibition will see ancient French photos of the architecture of One Pillar pagoda in the Nguyen dynasty, pictures of the pagoda collapsed in 1954 and restored in 1955 by architect Nguyen Ba Lang, images of national treasures such as the statue of Buddha at Phat Tich Pagoda (1057), the replica of Dam Pagoda (1094) pillar, Sung Thien Dien Linh epitaph (1121) and artifacts excavated at the Thang Long Imperial Citadel.

In addition, the event exhibits a number of objects and scale models of architectural works of the Ly dynasty. including the One Pillar pagoda and Dien Huu Ly pagoda dynasty through 3D pictures, 3D movies, virtual reality technology (VR3D) products.

Speaking at the opening of the exhibition, Mr. Nguyen Anh Minh, director of the Vietnam Fine Arts Museum said that One Pillar Pagoda is a unique architectural work of Vietnamese Buddhism, the most famous symbol of Thang Long -Dong Do-Hanoi millenary culture.

Vietnamese and international visitors are familiar with images of One Pillar Pagoda that was reconstructed in the 1955 by architect Nguyen Ba Lang with the Nguyen dynasty style, after the pagoda was blasted on November 9, 1954.

The One Pillar Pagoda image at the Vietnam Fine Arts Museum

This display at the Vietnam Fine Arts Museum is a research result of the SEN Heritage group, inherited the pagoda studies from senior scholars. The group has constructed the whole Dien Huu pagoda and the architecture of One Pillar Pagoda in the Ly dynasty using virtual reality technology (VR3D).

Dien Huy Buddhist Temple and its One Pillar Pagoda were built in 1049 and significantly restored in 1105 under the reign of King Ly Nhan Tong. This is a unique religious architecture of the Ly dynasty (1009 – 1226) and a symbol of the thousand-year cultural history of Thang Long – Hanoi.

From hundreds of art artifacts remaining after many ups and downs of history, for the first time, the VR products will help visitors experience the ancient images of One Pillar Pagoda, and the golden architectural heritage space 800 years ago.

However, according to Mr. Minh, the research results and 3D rendering of the Ly Dynasty pagoda of the SEN Heritage group is just a hypothesis, it should be studied in a methodical and prudent manner to know the exact architecture of the construction.

In the framework of the exhibition, a seminar of discussion about the form of one pillar and the architectural mandala of the Ly dynasty will take place on November 26.

Filed Under: Uncategorized One Pillar Pagoda, VR

September 7-13: Top leader orders careful preparations for Army’s 11th Party Congress

September 14, 2020 by en.nhandan.org.vn

Top leader orders careful preparations for Army’s 11th Party Congress

Party General Secretary and President Nguyen Phu Trong, who is also Secretary of the Central Military Commission, asked the Standing Board of the Central Military Commission to make meticulous preparations for the 11th Party Congress of the Vietnam People’s Army (VPA).

He made the statement while chairing a working session between the Politburo and the Central Military Commission’s Standing Board in Hanoi on September 12. Also attending the event were Prime Minister Nguyen Xuan Phuc, National Assembly Chairwoman Nguyen Thi Kim Ngan, and Permanent Member of the Party Central Committee’s Secretariat Tran Quoc Vuong.

Giving comments on the draft documents and personnel work preparations for the VPA’s 11th Party Congress for the 2020-2025 period, the top leader said he highly appreciated the quality of the documents. He spoke highly of the VPA’s efforts in implementing its entrusted missions, including public mobilisation, foreign relations and successful business operations.

However, the army should have better management in land use as well as closer coordination with the police force to outline better strategies to protect the nation, he said, hoping the VPA will make further contributions to the building of the Party and political system.

AIPA 41 successfully wraps up after three working days

National Assembly Chairwoman Nguyen Thi Kim Ngan speaking at the opening ceremony of AIPA-41 (Photo: VGP)

The 41st General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA-41) wrapped up in Hanoi via teleconference on September 10 after three working days. The event, hosted by Vietnam under the theme of ‘Parliamentary Diplomacy for a Cohesive and Responsive ASEAN’ from September 8 to 10, marks a significant milestone in the 14th National Assembly’s foreign relations during its term as the AIPA chair, as the COVID-19 pandemic rages on in the region and the world.

2020 marks the third time that the Vietnamese National Assembly has assumed the chairmanship of the AIPA and organised its General Assembly. This is an occasion for Vietnam to perform its role and responsibility in the AIPA and for the country’s NA to enhance its reputation as an active and responsible legislative body. It also promotes Vietnam’s position in the region and the world, especially in the context of the unprecedented pandemic.

NA Standing Committee’s 48th session opens

The 48th session of the National Assembly (NA) Standing Committee opened in Hanoi on September 10 under the chair of NA Chairwoman Nguyen Thi Kim Ngan.

During the session, the committee scrutinised five draft laws, comprising the amending and the supplementation of some articles of the trade union law, the law on forces safeguarding security and order at the grassroots level, the revised law on drug prevention and control, the revised law on road traffic, and the law on road traffic order and safety.

27th ASEAN Regional Forum adopts important documents

Deputy PM and Foreign Minister Pham Binh Minh at the ARF meeting (Photo: VGP)

The 27th ASEAN Regional Forum (ARF), as part of the 53rd ASEAN Foreign Ministers Meeting (AMM 53) and Related Meetings, has adopted several important documents, including the ARF Hanoi Plan of Action II, setting out cooperation priorities and directions for ARF activities in the 2020-2025 period.

The forum, which was held via video conference on September 12 under the chair of Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh, was attended by foreign ministers from 27 ARF member nations and organisations along with ASEAN Secretary-General Lim Jock Hoi.

Vietnamese ambassador selected as new Deputy Secretary-General of ASEAN

At the 27th meeting of the ASEAN Coordinating Council on September 9, ASEAN foreign ministers agreed on Secretary-General Lim Jock Hoi’s proposal regarding the appointment of Tran Duc Binh at the Committee of Permanent Representatives to ASEAN (CPR) as the new Deputy Secretary-General.

Accordingly, he will be Deputy Secretary-General of ASEAN for Community and Corporate Affairs for the February 2021 – February 2024 period. He will be responsible for the implementation of corporate support functions, including administration affairs, human resources, finance and budget, information technology, information resource management, protocol and formalities, legal affairs, and management of cooperation programmes and projects.

Vietnam ships first batch of shrimp to EU under new trade pact

Shrimp processing at Thong Thuan Company

Vietnam has exported its first shipment of frozen shrimp to the EU since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect in August. The seafood was produced by Thong Thuan Company and the shipment left the factory in the south-central province of Ninh Thuan on September 11.

Under the trade agreement, the EU will eliminate tariffs on 86.5% of Vietnamese seafood over the next three years with a zero tax rate expected after seven years. The EVFTA is expected to create a great opportunity for the export of Vietnamese seafood, said agriculture deputy minister Phung Duc Tien at a ceremony held to send off the shipment.

Vietnam exports S95 construction material for first time

The Hoa Phat Dung Quat Steel Joint Stock Company shipped the first batch of S95 ground granulated blast furnace slag to Australia on September 10, where stern standards and stringent requirements are applied. Comprising 2,500 tonnes of S95, the batch was produced at the Hoa Phat Dung Quat Iron and Steel Integrated Complex.

The granulated blast furnace slag is a by-product of the iron and steel production process using closed blast furnace technology. Due to the extremely rapid cooling with high pressure water, the granulated blast furnace slag is good for cement and concrete and has been used for a long time around the world as well as in Vietnam.

Vietnam’s forex reserve sets new record

Vietnam’s foreign exchange reserve has hit a new record high of US$92 billion, a significant expansion from US$84 billion which Governor of the State Bank of Vietnam Le Minh Hung revealed in April. At a recent Government meeting, Prime Minister Nguyen Xuan Phuc said the country’s forex reserve was expected to hit US$100 billion by the end of this year, five times higher than the level recorded at the beginning of his term.

Statistics of the General Department of Customs showed that August saw a trade surplus of US$2.5 billion and a surplus of US$10.93 billion in the January-August period, providing a plentiful supply of foreign currencies which has enabled the central bank to purchase foreign currencies from the beginning of this year.

Vietnam’s oldest Covid-19 patient, a centenarian, is discharged from hospital

Five Covid-19 patients in Quang Nam Province are discharged from hospital.

A 100-year-old woman in Quang Nam Province, Vietnam’s oldest Covid-19 patient, has been declared free of the coronavirus and was discharged from hospital on September 12 along with four other patients in the same province.

Known as patient 592, she was admitted to Quang Nam Central Hospital on August 1 after testing positive for the virus, technically known as SARS-CoV-2.

Filed Under: Uncategorized vietnam news, vietnam business, vietnam travel, vietnam culture, vietnam sports, vietnam politics, hanoi, saigon, ho chi minh city, apec, da nang, hue, hoi an, ...

World News in Brief: February 16

February 16, 2021 by en.nhandan.org.vn

* The World Health Organization listed AstraZeneca’s COVID-19 vaccine for emergency use, while sources said the EU is in talks with Moderna on buying more vaccines.

* Japan will begin its COVID-19 inoculation drive on Wednesday, starting with 40,000 medical workers, Japan’s vaccination programme chief Taro Kono said at a news conference on Tuesday.

* The euro zone is likely to decide between March and May when and how governments would start tapering support to their economies as vaccination campaigns allow the lifting of pandemic lockdowns and economic activity picks up, top euro zone officials said.

* Most G7 economies such as Japan, Britain, the United States and France agree that now is not the time to withdraw fiscal support for their coronavirus-hit economies, Japanese Finance Minister Taro Aso said.

* US Secretary of State Antony Blinken and Turkish Foreign Minister Mevlut Cavusoglu on Monday discussed bilateral ties and regional issues in a phone conversation, the State Department said in a statement.

* Russia registered 13,233 COVID-19 cases over the past 24 hours, the lowest daily increase since Oct. 10, the country’s COVID-19 response center said Tuesday. The national tally has thus increased to 4,099,323, with 80,979 deaths and 3,624,663 recoveries, the center said.

* Since the coronavirus outbreak, France has reported a total of 82,226 deaths after another 412 people died in the past 24 hours, showed data from health authorities on Monday. To date, France has recorded a total number of 3,469,539 cases, the sixth highest in the world.

* Ongoing COVID-19 measures continue to weigh on the German economy in the first quarter of 2021, according to the monthly economic report published by the Ministry for Economic Affairs and Energy (BMWi) on Monday.

* Britain’s prime minister said that world powers should clinch a global treaty on pandemics to ensure proper transparency.

* Republic of Korea has arranged to buy vaccines for 23 million more people, a day after authorities decided to scale back initial vaccination plans, citing delays and efficacy concerns.

* Australia’s Victoria state is well placed to begin easing out of a snap five-day lockdown on Wednesday, Premier Daniel Andrews said.

* Malaysia will get its first batch of vaccines, produced by Pfizer and BioNTech, on Feb. 21, and kick off its inoculation drive five days after that.

* The Department of Health (DOH) of the Philippines reported on Tuesday 1,391 new COVID-19 cases, bringing the total number of confirmed cases in the Southeast Asian country to 552,246. The death toll climbed to 11,524 after seven more patients died from the viral disease, the DOH said, adding that 45 more patients recovered, raising the total number of recoveries to 511,796.

* Mexico began the task of vaccinating millions of senior citizens, with dozens of Mexicans aged over 60 years waiting in line for hours because of delays in administering shots.

* Britain’s drug regulator is auditing manufacturing processes at Serum Institute of India which could pave the way for AstraZeneca’s vaccine to be shipped from there to Britain and other countries, sources said.

* The Czech government plans to reopen schools for more students from March 1 with regular testing for infections, which remain at high levels.

* Colombia will begin vaccinations on Wednesday following the arrival of its first vaccines, from Pfizer.

* South Africa has asked the Serum Institute of India to take back the one million vaccine doses the company had sent in early February, the Economic Times reported.

* The Palestinian Authority accused Israel of holding up the delivery of COVID-19 vaccines into Gaza, where Palestinians have yet to receive any doses.

* Up to 2.5 million customers were without power in the US state of Texas Monday morning as the state’s power generation capacity is impacted by an ongoing winter storm brought by Arctic blast.

* South African Airways (SAA) has received a further ZAR5 billion (US$346 million) from the Department of Public Enterprises to complete severance payments that form part of its rescue plan, bankruptcy administrators said on Tuesday.

* At least 32 passengers were killed and several others missing Tuesday after a passenger bus carrying them skidded off the road and fell into a canal in the central Indian state of Madhya Pradesh, officials said. Seven people have been rescued.

* The Afghan National Army commandoes have freed 42 people, including two dozen militaries, from a Taliban detention center in the northern province of Baghlan, the country’s Defense Ministry confirmed on Tuesday.

* An earthquake with a magnitude of 6.7 jolted 58 km W of Port-Vila, Vanuatu at 0049 GMT on Tuesday, the US Geological Survey (USGS) said. The epicenter, with a depth of 14.0 km, was initially determined to be at 17.75 degrees south latitude and 167.759 degrees east longitude.

* Nigerian government planned to vaccinate approximately 109 million Nigerians that will be eligible for the COVID-19 vaccination in two years, a senior health official has said.

* The World Health Organization (WHO) on Monday expressed concern over the resurgence of Ebola in two African countries.

Filed Under: Uncategorized vietnam news, vietnam business, vietnam travel, vietnam culture, vietnam sports, vietnam politics, hanoi, saigon, ho chi minh city, apec, da nang, hue, hoi an, ..., ponca city news briefs, bbc news world news, bbc news world news today, bbc world news bbc world news, bbc world news breaking news, fox news world news, abc news world news, abc news world news now, abc news world news tonight, cnn world news headlines and breaking news, february 16 calendar, cnn world breaking news latest world news

Bitcoin goldrush sparks fears of speculative bubble

February 19, 2021 by www.vir.com.vn

bitcoin goldrush sparks fears of speculative bubble
Bitcoin goldrush sparks fears of speculative bubble

Investors and mega-corporations alike have been wooed by dizzying growth and the opportunity for profit and asset diversification.

The unit blasted past $50,000 on Tuesday following a week in which Tesla invested $1.5 billion in bitcoin and vowed customers could use it to buy vehicles and both New York bank BNY Mellon and credit card titan MasterCard announced plans to support bitcoin.

The cryptocurrency then vaulted higher, topping $52,000 on Wednesday after investment fund giant BlackRock also confirmed a push into the booming sector.

Yet this week’s astonishing ascendancy of bitcoin has sparked renewed fears of a big bubble which the market had last experienced four years ago.

– ‘Riding the crypto wave’ –

US software firm MicroStrategy meanwhile announced plans on Wednesday to sell convertible bonds in order to buy more bitcoin, raising eyebrows in some quarters.

“Suddenly it feels like 2017 again when everyone wanted (to) … ride the crypto wave,” warned OANDA analyst Craig Erlam.

“If companies’ fundamentals are going to become closely tied to movements in bitcoin because they have suddenly become speculators on the side, we are going to be in bubble territory before you know it.”

The unit had previously hit the headlines in 2017 after soaring from less than $1,000 in January to almost $20,000 in December of the same year.

The virtual bubble then burst with bitcoin’s value then fluctuating wildly before sinking below $5,000 by October 2018.

“Bitcoin is an asset that is incredibly volatile and is very risky,” said professor Matthieu Bouvard at the Toulouse School of Economics.

“At the same time, we have been saying for ten years that bitcoin will collapse — but it’s still there,” he told AFP, adding that the unit’s volatility would decline as its popularity broadens.

One bitcoin is currently worth five times more than a year earlier, while the combined value of all units in global circulation is almost $1.0 trillion.

– ‘Digital gold’? –

Industry professionals maintain however that bitcoin is a new and ground-breaking financial unit of the future.

Eric Demuth, chief executive of cryptocurrency broker Bitpanda, describes bitcoin as the “new digital gold” that is prized by investors who seek to diversify assets and guard against inflation.

“Bitcoin will soon be added to the balance sheet of central banks,” Demuth told AFP.

A number of central banks have indeed announced plans for bank-backed digital units, but are highly sceptical over bitcoin because of its shadowy nature — and the fact that it remains unregulated.

European Central Bank President Christine Lagarde declared this month that bitcoin was “not a currency” and was a “highly speculative” asset requiring global regulation.

At the same time, Europe represents just ten percent of bitcoin purchases from investment funds, according to cryptocurrency data provider ByteTree.

US companies have meanwhile been quicker than their European counterparts to embrace the unit.

“The difference between the US and Europe in that regard is the same with pretty much any kind of adapting to new technology. It always takes just a bit longer. In the US, they started two years ago,” noted Demuth.

AFP

Filed Under: Uncategorized Bitcoin, speculative bubble, Money

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