Bitcoin trading in South Korea has been on a roller coaster ride in recent years. After peaking at over $1,000 per bitcoin in late 2013, the digital currency’s price fell to around $200 by early 2015. However, bitcoin prices have been on the rebound in recent months, climbing back above $1,000 in early 2017. You can also explore bitprime gold for gaining proper information about bitcoin trading
What’s driving this renewed interest in bitcoin? Several factors appear to be at play.
First, there’s growing awareness of bitcoin and other digital currencies among the general public in South Korea. This is thanks in part to the “Kimchi Premium” phenomenon, which refers to the tendency for bitcoin prices to be higher in South Korea than in other countries.
The Kimchi Premium was first observed in 2013 when the price of bitcoin was around $600. At that time, one bitcoin could be bought for as much as $900 in South Korea, while the same bitcoin was only worth $600 in other markets.
The Kimchi Premium has been attributed to a number of factors, including the relative lack of liquidity in the South Korean bitcoin market, and the fact that most trading is done via local exchanges rather than international ones.
In recent months, however, the Kimchi Premium has all but disappeared. This is likely due to the launch of several major international exchanges in South Korea, such as Bithumb and Korbit. These exchanges have helped to increase liquidity in the market and bring prices more in line with those in other countries.
Another factor that may be driving the recent surge in bitcoin trading activity in South Korea is the country’s ongoing political and economic uncertainty.
South Korea has been embroiled in a corruption scandal involving its president, Park Geun-Hye, who was impeached in March 2017. The scandal has led to widespread protests and calls for regime change, adding to the country’s political instability.
At the same time, South Korea’s economy has been struggling in recent years. The country’s exports have declined for 15 straight months, and its unemployment rate is at a five-year high.
In this environment of economic and political uncertainty, many South Koreans appear to be turning to bitcoin as a safe haven asset. This is similar to the way that investors have traditionally sought refuge in gold during times of turmoil.
The future of bitcoin trading in South Korea remains uncertain. However, the recent surge in activity suggests that there is significant interest in the digital currency among South Korean investors. Given the country’s economic and political woes, this interest is likely to continue to grow in the months and years ahead.
As the second-largest market for Bitcoin trading, South Korea has played a significant role in shaping the cryptocurrency landscape. In recent years, the country has been at the forefront of some of the major developments in space. From the launch of major exchanges like Bithumb and Upbit to the introduction of regulatory frameworks, South Korea has been a key player in driving adoption and innovation in the cryptocurrency space.
Looking ahead, it is clear that South Korea will continue to be a major player in the Bitcoin ecosystem. With a population that is highly receptive to new technologies and a government that is supportive of innovation, South Korea is well-positioned to lead the way in Bitcoin adoption. In addition, with a number of major exchanges already established in the country, South Korea is well-positioned to become a major hub for Bitcoin trading.
Bitcoin trading in South Korea is still in its early stages, but the country has already become one of the leading markets for BTC. Despite the volatile nature of cryptocurrencies, the Korean won (KRW) is one of the most traded currencies on Bitcoin exchanges.
The reason for this popularity:
South Korea has a very active and large digital currency community. In addition, the country’s government and financial authorities have shown a supportive stance towards cryptocurrencies.
This positive environment has resulted in a boom in Bitcoin trading activity in recent years. According to data from CoinMarketCap, Korean exchanges were responsible for around 20% of global Bitcoin trading volume in 2017.
Looking ahead, it is likely that Bitcoin trading in South Korea will continue to grow in popularity. This growth will be driven by the country’s favourable regulatory environment, active cryptocurrency community, and increasing public awareness of Bitcoin.