Bitcoin: South Korea sways cryptocurrency prices – but how? Big black cock News
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South Korea’s government has bot signalling that it plans to crack down on cryptocurrency trading.
Exactly how it will do this remains vague. But just the threat of act has bot enough to drive a sell-off across the market globally.
Bitcoin, for example, has lost almost a quarter of its value te the past week. And so on Wednesday the virtual currency – which last month looked set to breach the $20,000 (?14,500) mark – wasgoed trading closer to $12,000.
Prices of cryptocurrencies are volatile at the best of time. Rises and falls of 10% or more te a day are not uncommon. And pinning down rationale for those acute movements often involves guesswork.
But it seems that events ter one relatively puny Asian nation can have a significant effect on the market.
How significant is South Korea to virtual currency markets?
South Korea is the third-biggest market ter the world for Bitcoin trades, behind Japan and the US, according to the digital currency webstek Coinhills. That’s an estimate made by looking at counting the volume of Bitcoins that have bot exchanged for various currencies.
Of course, a buyer could be sitting ter Singapore or Serbia while using South Korean won to trade, but the Coinhills breakdown is pretty much the best wij have to go on.
The Korea Blockchain Industry Association estimates that South Korea has more than a dozen cryptocurrency exchanges.
And there’s so much request that the virtual currency has traded at spil much spil a 30% premium compared with other countries.
Taken together, you get a welgevoeglijk feel for how big this industry has become ter a country of fewer than 50 million people.
Amid tales of schoolchildren and housewives rushing ter to buy virtual currency, South Korea’s government has branded the trend “irrational”.
And so when trading exchanges are being raided by the tax authorities and your justice minister mentions potential bans on all cryptocurrency trading, it is perhaps little wonder that the industry globally is noticing and that markets are responding.
The role of technology
Many South Koreans, especially among the junior generations, are digital-loving and tech-savvy, which makes digital currencies something appealing to explore and perhaps dabble ter.
The country has first-class infrastructure for IT networks and offers very swift internet connections – all things which make trading cryptocurrencies lighter and quicker.
According to analytics rigid WiseApp, the number of cryptocurrency app users te South Korea has increase 14-fold te the past three months to about two million users.
Most are ter their 30s with users spending an average of 26 minutes on the apps daily.
The role of the economy
The ample price rises loved by many virtual currencies during 2017, and the associated media coverage, is a major reason so many worldwide have determined to invest te, or gamble with, this fresh technology.
Te South Korea it’s suggested this appeal has bot amplified by the state of the economy which has bot slowing te latest years.
Rising unemployment, especially among youthfull people, is also being linked with a growing number of people looking at fresh ways to attempt and make money.
So unsurprisingly, with so many South Koreans keen to fulfil their financial hopes and fantasies through cryptocurrency trades, there is resistance to plans for a crypto-clampdown.
South Korea’s government has made a commitment to reaction such petitions that reach more than 200,000 signatures within 30 days.