Bitcoin Explodes, Trades Above $4,000 In South Korea

[Y_Participant 4591]

Bitcoin Explodes, Trades Above $4,000 In South Korea
by Tyler Durden for ZeroHedge
25th May 2017 8:10 AM

In recent weeks it has been Japanese demand (and notable premia) that has driven the exponential rise in Bitcoin, but recently, as CoinTelegraph reports, it has been South Korea. Overenight saw Bitcoin prices explode once again, smashing through $2500, $2600, and $2700 for the first time…

As CoinTelegraph.com reports, South Korean Bitcoin traders are facing asking prices of $4,500 as the virtual currency’s price continues to surge.

Order books from domestic exchange Coinone list a current price of 4,254,000 won ($3805), with a 24-hour high of 5,025,000 ($4494).

As Bitcoin.com reports, the region has also been blossoming with startups dedicated to bitcoin remittance and financial tech advancement.

The South Korean government has been very friendly towards digital currencies, and the country is steadily becoming a technology hub. Just recently the government lowered the equity capital requirement for bitcoin companies working with remittances. The new statutes will begin on June 18 with a reduction of required capital to 1 billion KRW in contrast to the prior requirement of 2 billion KRW.

Additionally, researchers from the South Korean central bank recently released a report that detailed that virtual currencies like bitcoin can “coexist with fiat.”

“The recent emergence of digital currency opens up a new type of dual currency regime in which digital currency, which has no intrinsic value and a government-issued fiat currency coexist,” explained the researchers from Seoul’s Hongik University and members of the Bank of Korea’s (BOK) report.

The wide spreads are unprecedented even compared to other recently inflated markets such as Japan, local exchange bitFlyer listing a price of 333,200 yen ($2980).

On Coinbase, one Bitcoin is currently selling for $2667.53 as of press time on Thursday.

Users have presented various theories as to why South Korea’s exchange market is so varied, these ranging from capital controls to en masse arbitrage and even a “debt-fuelled bubble” economy.

Bitcoin itself, meanwhile, is continuing to produce new price highs, flying in the face of those concerned that a new bubble has formed.

<<Y

Bitcoin is a cryptocurrency and a digital payment system[ invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009.

The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network groups and recorded in a public distributed ledger called the blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.

Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.

As of February 2015, over 100,000 merchants and vendors accept bitcoin as payment. According to a research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users actively using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin is not considered as fuly convertible currency as it cannot be traded for US dollars (World Reserve Currency) so banks and financial institutions will by default not accept them unless this is allowed by a country’s Central Bank and only in that country’s currency.

Y>>

Citation
http://www.zerohedge.com/news/2017-05-25/bitcoin-blows-throuigh-2500-2600-2700-overnight-south-korea-demand-soars
https://en.wikipedia.org/wiki/Bitcoin#Acceptance_by_merchants

[Manspread MansplainerParticipant 4222]

Yumbo, should I be picking some up right now? People are saying 100$ in 2010 would be worth $75 million now.

I first heard about it in 2013 reading about that Silk Road blackmarket site.

It can be traded for goods (buy property with it one day?) but what is your opinion on cyberhacking or EMP weapon knocking out the internet. Could we lose everything?

I understand currency fairly well, interest rates capping inflation, effects of economic health/human development etc.

I’ve got some physical precious metal but is it wise to diversify into bitcoin too? Can it be a scam for lack of a better term?

What is driving the surge? Loss of faith in currency? people wanting a new fad?

Sorry for so many questions but feel I’m missing out here. Some say either get some now, or else when the public undersrands it will be too late.

Can you help an aging guy here too busy working like a slave to understand new technology please.

If women ran the world = It would become the shithole you are seeing.

[Jan SobieskiParticipant 28791]

Why? What is different today?

Love is just alimony waiting to happen. Visit mgtow.com.

[clint englandParticipant 341]

I had 5k worth of bitcoin until the other month when it tanked over the fork fiasco. I still came out ahead but after watching vention on youtube i decided to get out.

They would have been worth 18k by now!

Lesson? Make your own decisions off the back of of your own research, that way you only have yourself to blame if things go south. Personally i do only blame myself here and bitcoin may go up to 100k a piece, who knows.

I won’t be buying again unless it tanks again and then it would be a conservative investment as it was before.

[BeerParticipant 11832]

Jan Sobieski wrote:

Why? What is different today?

This is what scares me with Bitcoin. I’d expect to see this sort of explosive growth from some startup that just put some amazing new product on the market and is kicking ass…not from speculation in a “currency” that has absolutely nothing backing it.

There is going to be a lot of pain for a lot of people when this one comes tumbling down and thanks to its anonymous nature there won’t even be anyone to point a finger at lol.

[clint englandParticipant 341]

Beer wrote:

Jan Sobieski wrote:

Why? What is different today?

This is what scares me with Bitcoin. I’d expect to see this sort of explosive growth from some startup that just put some amazing new product on the market and is kicking ass…not from speculation in a “currency” that has absolutely nothing backing it.

There is going to be a lot of pain for a lot of people when this one comes tumbling down and thanks to its anonymous nature there won’t even be anyone to point a finger at lol.

Very true! It may make a few people rich (has already i guess) or bankrupt. I always watched the opinions of some top money people/hedge fund manangers and most of them are not convinced which is a red flag. As with any speculation only put in what you afford to lose that doesn’t take your shirt with it if it goes t~~~ up!

[Y_Participant 4591]

Manspread Mansplainer wrote:

Yumbo, should I be picking some up right now? People are saying 100$ in 2010 would be worth $75 million now.

I first heard about it in 2013 reading about that Silk Road blackmarket site.

It can be traded for goods (buy property with it one day?) but what is your opinion on cyberhacking or EMP weapon knocking out the internet. Could we lose everything?

I am not a bitcoin user (unfortunately) and there are men on this site who are experts in bitcoin. I hope they can get you started if you want to. But I can answer your questions on WHY this happened – as these are based on economics and politics and hindsight.

Note one thing before we start. If you are buying bitcoin or other cybercurrencies there is no predictability what might happen in the LONG TERM. No one knew the price would go up this fast even six months ago. It was a complete shock to many including myself.

Similarly the price can suddenly drop but we can reasonably look at the next few months to see the expected trend – just like stocks!! Think of it as a stock. That is all that cam be done. You place your bets on what you know and cross your fingers.

Let us look at these reasons to see why this happened and what we can expect in the short term ( a few months)

1. The more volatility in real currency markets means bitcoin moves up.

The US dollar is in bad shape and the Fed is tightening – meaning higher US inflation vs declining dollar value. Trump wants a weak dollar and will get the Fed to print more. If this continues bitcoin and cybrcurrencies and gold move up.

2. US Stocks are pushing at a ceiling and the ‘Trump effect’ on stocks is gone. People are scared about stocks and are prepared to imvest in bitcoin or gold.

3. In China, South Korea and Japan cryptocurrencies are now valid currencies – therefore the buying will continue and expand. China especially is in a bad way with its debt and there is a major panic there that the market may devalue hugely and most Chinese see bitcoin as the only way out.

4. There is a possible US led war situation and also terrorist attacks that people are afraid will devalue markets. So bitcoin goes up again.

5. In the EU Italian banks may collapse and Greece can no longer pay their debts. The Euro inflation is starting and is 2% now – at the target rate and is expected to go higher. Bitcoin moves up.

There is a perfect storm that keeps the cryptocurrencies going up. All these factors are not expected to ease anytime soon. So bitcoin is expected to rise further as a safe haven.

Therefore my prognosis is that bitcoin and other crypto will keep moving up in the short term for at least a few months.The driving force at the moment is the heavy buying from East Asia and rising inflation elsewhere.

However note that these situations may ease or reverse after a period of time and the price of bitcoin can fall. In the long term no one knows. You need to read the market and be bitcoin savvy.

There is also the danger of US or other government intervention in bitcoin as this affects the dollar value. At the moment the total value of the cryptocurrency market is small about US $50 billion. This may change and laws put in place.

Cyberhacking – this is a possibility but at the moment the system appears to be generally stable. If there is a hack it will target larger users like hedge funds. The threat level is low on this at the moment.

EMP – this is an extreme event. Prep and forget about bitcoin!

Remember bitcoin can also be carried around in ‘wallets’ outside the internet for safety.

So if you buy do it with cash that you can afford to lose. Once you are more confident you can take more risks.

Bitcoin is currently limited in use. You buy and sell it for US dollars or such on the free market. It is not widely regarded as ‘money’ in the US more like a stock at the moment.

The threat of an internet shutdown is real – however it would be more a US government shutdown of bitcoin. That being said as long as the internet is up you trade it internationally. No one can stop you. In East Asia it is real money now. There is this risk but not anytime soon. There is still time to make some money.

I hope this helps and others help you out on specifics on how to trade and what to look out for.

I also believe in PM’s – this is your wealth of last resort. Keep it safe.

[BoneAshParticipant 109]

Damn I just had a meet with a bitcoin guru a week ago who was all about it and I told him I wouldn’t own any due to the high liquidity and uncertainty and the fact that largely its used for criminal activities like cryptolocker extortions… Anyway he told me he knows some bitcoin millionaires personally who reinvested their dividends in bitcoin. Maybe they were right, I still feel that you need to diversify. If I would be bitcoin millionaire Today I would roll that down bitcoin <50k and but real estate instead. You want to own something whats real not virtual BS. Just like you own Facebook shares for example and somebody comes up with fb2 crashing the stock. With real estate it will not happen.

[Neon_PhoenixParticipant 136]

This is totally off topic, but BoneAsh, what is your avatar? That looks like a poor kitty to me!! I have a huge soft spot for animals and i think most of the guys here would agree animal cruelty is definitely not cool. Not accusing you of it, but your pic makes me curious.

Having said that, i am gonna say screw it and put a couple Gs into Litecoin, like the rest of them, it has nowhere to go but up.

Neo: "Why do my eyes hurt?" Morpheus: "Because you have never used them before"

[Manspread MansplainerParticipant 4222]

The fact all purchases are made in US Dollars is telling. Seems like a stable reserve currency to me. Anyone who f~~~s with the petrodollar gets nuked.
I can’t see Chinese Yuan becoming a reserve currency, the Euro was once seemingly powerful but now.. Not so much.

Might pick some up just to say I have some. It’s like going to a casino. Walk in with 10 bucks walk out with a million is good. Walk in with a million bucks walk out with 10 not so good.

Thanks for posting this Yumbo.

If women ran the world = It would become the shithole you are seeing.

[Y_Participant 4591]

Manspread Mansplainer wrote:

The fact all purchases are made in US Dollars is telling. Seems like a stable reserve currency to me. Anyone who f~~~s with the petrodollar gets nuked.
I can’t see Chinese Yuan becoming a reserve currency, the Euro was once seemingly powerful but now.. Not so much

The dollar is now on top and for the last 40 years – but the time is not very far away when it will lose reserve status. There is a reason for this that is why we hold gold and silver. The signs are already there.

The new reserve currency will be IMF SDR which is backed by a basket of world currencies and most likely will be linked to a gold standard in some way. The US dollar will probably replace the Fed Reserve Note you are holding – they are not the same thing. We will have to see what happens.

Manspread Mansplainer wrote:

Might pick some up just to say I have some. It’s like going to a casino. Walk in with 10 bucks walk out with a million is good. Walk in with a million bucks walk out with 10 not so good.

Casino is right. You need to know when to hold and when to fold.

You can start a new post to find out from our bros how to do the buying and what to look for – many will respond and take you through the process.

Good luck.

[Y_Participant 4591]

BoneAsh wrote:

Damn I just had a meet with a bitcoin guru a week ago who was all about it and I told him I wouldn’t own any due to the high liquidity and uncertainty and the fact that largely its used for criminal activities like cryptolocker extortions… Anyway he told me he knows some bitcoin millionaires personally who reinvested their dividends in bitcoin

Bitcoin is not a long term investment – it is a short term money-making opportunity just like shorting real currencies. When the going is good – like now – guys can make some money but remember to get in and get out while the going is good.

BoneAsh wrote:

Today I would roll that down bitcoin <50k and but real estate instead. You want to own something whats real not virtual BS

Agreed. There is no long term future in anything that is not physical. Anything can and will happen to non-physical assets.
That is why gold silver real estate etc. are the real deal.

[Y_Participant 4591]

Neon_Phoenix wrote:

Having said that, i am gonna say screw it and put a couple Gs into Litecoin, like the rest of them, it has nowhere to go but up.

Again I always urge to know the game and the risks. Good luck bro.

[Anonymous 11]

I did not fall off the back of the turnip truck yesterday. Whenever a commodity, bond, currency, or equity has a parabolic rise like Bitcoin is experiencing, then look out below.

Bitcoin is a great concept and quite useful for many situations. The volatility makes it a useless as a store of value.

Be prepared for a flash crash to $900-$1100.

[Y_Participant 4591]

Anonymous wrote:

I did not fall off the back of the turnip truck yesterday. Whenever a commodity, bond, currency, or equity has a parabolic rise like Bitcoin is experiencing, then look out below.

Yes – that is for sure.

[Anonymous 11]

Case in point though in US$:

[BoneAshParticipant 109]

There is too much bs happening in the bitcoin world, like the worlds biggest exchange goes bankrupt due to hacking and run by incompetent people like this guy:

The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster

Who cares more about his great idea bitcoin coffee than his company, losing 450million of other peoples money. Although I don’t know the full story that if those who had money at them eventually get it back through legal process or not.

Now I signing up on a second biggest exchange in my country:

https://www.bitstamp.net/

Probably won’t buy it tho over 2k. I still feel that this sudden peek will fall back to almost previous level and that is when I plan to get in for a ride. I made that rookie mistake with some stocks to invest when they were high then I got stuck with them in low for years (even tho some pays decent dividends I will not sell them because I don’t want to lose money on them).

@neon_phoenix sorry that this avatar offends you, I have nothing against animals. I spend a lot of time on the net and when I see funny pictures collect them together and reuse them later.

[Anonymous 11]

You know what bitcoin is great for doing. Leaving your oppressive home country and transferring wealth w/o declaring it on exit then reconstituting it upon arrival, well, that and ransomware.

Mt. Gox, who can forget them.

[Y_Participant 4591]

This is the US session. Looks like US markets dumping bitcoin?

It will reverse again when East Asia starts trading in the morning (their time). Korea still in a craze about it.
Better than K-Pop? LOL!

Again thanks for the updates. Lower level is good. And the bozo bitcoin entrepreneur should know better. All big operators are targets.

[Y_Participant 4591]

Anonymous wrote:

You know what bitcoin is great for doing. Leaving your oppressive home country and transferring wealth w/o declaring it on exit then reconstituting it upon arrival, well, that and ransomware.

Exactly what the Chinese are doing and they are scared stiff of a yuan devluation. That is why the price is expected to rise again when East Asia trades.

[Author]

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