Thursday, May 25, 2017

Bitcoin bonanza in Asia as rush to get out of fiat currencies drives price of cryptocurrency to a whopping $4500 per coin

It has not been difficult to figure out that as Asian economies have begun to show signs of recession and economic decline, the need for individuals and institutions to get out of their devaluing currencies is a must.  And by far the most liquid and primary asset in which most are going into over the past two months is Bitcoin.

A week or so ago we published an article showing that more than 48% of all Bitcoin transactions in recent days have occurred in Korean and Japanese exchanges, with most of these purchases being tied to institutional investors.  However it appears that the push to $2300 less than seven days ago was just the tip of the iceberg as Asian buyers, especially in South Korea, have now propelled the price of Bitcoin to over $4500, or a near doubling in less than a week.

As 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. - Zerohedge


From the Land of Oz:

This might trigger an attack on bitcoin exchanges.

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