In 2009, when the cryptocurrency and a digital payment system Bitcoin was released as open-source software by an anonymous computer programmer/programmers under the pseudonym Satoshi Nakamoto, little did we know it would become a competitor to government-backed paper money.
As for the anonymous inventor/inventors of Bitcoin, they knew what their creation would bring forth, hence the need to hide their identities to avoid harassment – or even the possibility of elimination by the government.
Although Bitcoin is still not available in many countries, due to the lack of the technology involved in rolling out the digital currency, in the few countries it is available, the currency is growing remarkably.
East Asia is witnessing a digital revolution, particularly in Japan and South Korea. The digital revolution is affecting many aspects of citizens’ lives, including their finances. Many are shifting from conventional paper money to digital money. Recently in Japan, Bitcoin recorded an unprecedented sharp rise.
South Korea is also now feeling the imminent revolution of the internet-based currency.
Coin Telegraph reports that Bitcoin prices exploded in South Korea on May 25, reaching as high as over $4,000. According to the report, South Korean Bitcoin traders are facing asking prices of $4,500 as the price of the digital currency 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).
Bitcoin.com also reported the surge in the digital currency in East Asia is a result of emerging startups dedicated to Bitcoin remittance, as well as advancement of financial technologies in the region.
Unlike in some countries where governments are hostile to digital currencies, the South Korean government is very friendly towards such emerging currencies, hoping to seize on the opportunity to make the country a technology hub in East Asia.
Just recently, the South Korean 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.
Also, the South Korean Central Bank (BOK) and experts in academia also released a report explaining how digital currencies like Bitcoin can coexist with fiat in the country. The researchers who authored the report revealed there are huge potentials in such currencies for the overall development of the country.
“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,” researchers from BOK and Seoul’s Hongik University explained in the report.
Users of Bitcoin services have also presented various theories, including capital controls, en masse arbitrage and a “debt-fuelled bubble” economy as the reason South Korea’s exchange market is favorable to digital currencies such as Bitcoin.
Bitcoin is decentralized, which means it doesn’t need Satoshi to continue. It is an open-source technology, which means that anyone can suggest tweaks to the code — and over the years, many people have.
As the currency continues to produce new high prices in East Asia, commentators say new bubbles are forming, and it is just a matter of time before they explode around the world. Start learning about Bitcoin before the impending revolution of the currency happens in your country.
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