South Korea Cryptocurrency: Government’s Support Leads to Bitcoin Volume Surge

The recovery of Bitcoin is following the “V-shaped” pattern of ups and down, he said. “Confidence can shift very quickly one way or the other”.

Bitcoin is up over 80 percent since it bottomed at $5.947.40 on February 6.

Now at around $10,000, both camps are taking a breather and it’s time to look at fundamentals again. He said, “Bitcoin has pretty much failed as a currency by standard benchmarks and is neither a store of value nor a useful way to buy items”.

Also, be aware that there’s a limited amount of the cryptocurrency.

Currently, there are over 100,000 merchants globally that accept Bitcoin as payment.

Belfort doesn’t see Bitcoin itself as a total scam, but he believes that it will never go mainstream either.

While Bitcoin is a currency created to replace government-issued currencies, Ethereum is a merely a token based on a decentralized platform that powers “smart contracts”. Therefore, “Don’t put in more money than you can afford to lose”. There were a few minor global headlines concerning bitcoin regulation. He also said that his kids prefer to invest in bitcoin rather than the stock market. “For now, a meaningful drop in cryptocurrencies’ market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate”.

With the way that the price of Bitcoin has swung over the past few months, it seems like everyone wants to get in on the action. There are only 21 million bitcoins, and more can not be produced. And it’s no wonder why: With the meteoric rise of cryptocurrency in the last two years, new investors are wondering if they can make massive returns and buy a castle in the Bay Area.

The price of bitcoin should be determined simply through supply and demand as is the case for usual stocks, but as Fortune magazine’s Jen Wieczner says – bitcoin is also affected by hype.

So what could push bitcoin prices closer to a competitive valuation versus gold and fiat? The country was thinking of banning all digital currencies and domestic exchanges, something that could have had a huge impact on the prices of Bitcoin and other major altcoins. Back in December 2017, he warned investors about bubbles and volatility in the high-flying digital currency market. Jung’s positions as the Head of Economic Policy involved integrating positions on cryptocurrency forwarded by different ministries, a high pressure role that directly influences South Korean government stance on digital currencies.

Is bitcoin going to $0?

Now with central banks tightening and long-term yields rising, these fundamentals have changed.

“Virtual currency cuts out the middleman and allows users to send money or pay for goods with essentially no fee”, Byrd said.