Presently, the prices of bitcoin have reduced greatly. This depreciation is due to the threats to ban trading on the digital currency by South Korean. The South Korean government is yet to act on this plan of action and draw up strategies to ban trading on the coin. Nonetheless, this has made several investors and financiers pull out from exchanging the cryptocurrency. Many investors are afraid that if the government gets involved, a lot of cryptocurrency’s traders may lose large amounts of money.
The digital currency markets
South Korea has the biggest market for trading cryptocurrency followed by the US and Japan. There are several online currencies exchange carried out in South Korea. They also have the greatest demand for the digital online currency. The excessive demand for the coin aided them to attain a sales profit of about 30% in contrast to other countries.
The prices of Cryptocurrencies are highly volatile as it rises and falls easily. As the coin prices remarkably depreciate and increase, the volatility is trailed back the government of South Korean for their threats to prohibit the cryptocurrency exchange and also ban all forms of digital currency exchanges.
South Korea and the growth of Bitcoin
Cryptocurrency has soared in South Korea as a result of great infrastructure present in the country. As a result, many South Koreans have gained access to the digital currency. This has lead to a massive increase (14%) of users within a short period time (about three months).
The interest by South Koreans to use bitcoin as a means of income is fueled by the dawdling economic growth alongside the growing rate of unemployment in South Korea. The rate of unemployment among the South Korean minority has reason to 9 % as indicated by Statistics Korea. To a lot of South Koreans, investing in the cryptocurrency is an easy, efficient, and advanced way of making added income.
Conclusively, South Korea owns an extremely large quota of its inhabitants investing in Bitcoin and several digital currencies. When the government of South Korean pressured to prohibit cryptocurrency exchange, the announcement has since affected the achievement of the cryptocurrency.
The possible decline in Bitcoin prices has motivated many other investors to pull out from investing in the digital currency. The withdrawal of the country’s population from cryptocurrency and the Bitcoin trade is certain to affect the digital currency trade worldwide.