Bitcoin Explodes, Trades Above $4,000 In South Korea

Tyler Durden's picture

In recent weeks it has been Japanese demand (and notable premia) that has driven the exponential rise in Bitcoin, but recently, as CoinTelegraph reports, it has been South Korea. Overenight saw Bitcoin prices explode once again, smashing through $2500, $2600, and $2700 for the first time...

As reports, South Korean Bitcoin traders are facing asking prices of $4,500 as the virtual currency’s price 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 Live Orderbook


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.

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Arnold's picture

Paper Bitcoin.

Automatic Choke's picture

at least with tulip bulbs, you could plant the tulips.....

rrrr's picture

At least with bitcoin, today anyway, you can convert to dollars. Can you do that with tulip bulbs? Dollars are paper, that's true. But my local groery store accepts dollars. They don't accept tulips.

Harlequin001's picture

Last one in gets to keep it!

Took Red Pill's picture

Forbes says China is behind it. Whoever is, I missed the boat! I just never trusted it because it's all digital. You can't hold it in your hands. It could be gone in a flash!

Doña K's picture

how can i short this thing?

FrozenGoodz's picture

How can it trade $4k in Korea but be $2,700 in US atm?

Prisoners_dilemna's picture

High demand in a local market.


Give it a few hours and arbitrage will balance it all out.

Justin Case's picture

High demand in a local market.

I understood it as a global currency without a specific brand by country? Are there country specific markets that are isolated to traders by exchange in that country then? WTF moment.

el buitre's picture

The crypto exchanges are operating on a "fractional reserve" basis.  Just like bank deposits, they are selling cryptos which they don't own.  Like banks, they can get away with this shit until there is a "run," and people want to extract their cryptos to put in their wallets.  This is exactly what happened with the Mt. Gox fiasco and it probably will happen again.  Only question is what would trigger a run into wallets?

slimycorporatedickhead's picture

LOL I thought the whole entire point of BTC was that you couldn't sell it unless you owned it. The more I hear about this shit the more I think its worth fuck all.

My #1 argument is as follows read this list and try not to laugh:

Ripple, NEM, Litecoin, Dash, Monero, Bytecoin, Golem, Zcash, Augur, Stratis, Gnosis, Steem, Waves, Siacoin, Bitshares, Madesafecoin, Lisk, Ardor, Factom, Digibyte, Decred, Syscoin, Bitconnect, Aragon, Tether, NXT, Antshares, Byteball, Komodo, Reddcoin, Peercoin, Emercoin, Melon, Lykke, Storjcoin, Bitcoin Dark, Namecoin, Earthcoin, Ark, YBcoin, Humaniq, Gulden, Wetrust, TokenCard, Matchpool, Mooncoin, Edgeless, Infinitecoin, potcoin, navcoin, blackcoin, vericoin, bitbay, verge, Ubiq, Etheroll, expanse, Agoras Tokens, Merge Coin, Z Coin, Pepe Cash, Swarm City, I/O Coin, Nexium, Mona Coin, Digital Note, Clams, Bankcoin, Vertcoin, Gridcoin, Taas, Ecoin, Radium, Blocknet, Florin Coin, Fedora Coin


Plus 600 more that I dont have the time to add. Look at that list and tell me that any of these virtual coins are rare or scarce.

dark pools of soros's picture

Inputs jackass. Bitcoin is fast to travel but fiat is slow. Local cash is quicker than international... and a lot of exchanges have cash limits per week/day... you just figuring this out?

Justin Case's picture

For technical reasons the bitcoin network can currently only handle about 7 transactions per second. Visa, by comparison, routinely handles thousands of transactions per second and, in a pinch, can accommodate up to 56,000 per second. If bitcoin's true purpose is to be an electronic payment system, it is about to spectacularly fail at that mission. In fact, it already is; transactions that used to be nearly instantaneous and nearly cost-less are becoming slower (taking hours or even days to be confirmed) and more expensive.

So paper currency backed by government is amazingly stable, useful, and even in terrible times, still gets used. Bitcoin, sadly, has none of that going for it.

But what if the "value" of gold or bitcoin is not measured in government fiat, but in their own potential as monetary instruments? After all, the US dollar will not outlast the US government (in its current form, at any rate), but gold will and bitcoin might. And if these instruments are not investments but hedges, that changes the meaning of their "value," doesn't it?

It's a fascinating real-time economics lesson. The bubble mentality is just mesmerizing. If you remember the Yahoo Finance Message Boards back during the dotcom bubble, then the Bitcoin page on Reddit will seem very familiar. But little digital tokens backed by nothing but a hope that you can sell them to a greater fool tomorrow are not the future of currency, and have no intrinsic value.

There you have sonny boy.

fx's picture

It's amazing. I missed that party - been late a couple months. (or rather, years). Nobody buys BTC anymore for buying stuff with it. Only for holding and later on selling it at a much higher price. So exactly what a currency as medium of exchange is designed for. Wait, I may have mixed somethiung up here.

BTC has become a complete joke now with the recent blow-off , although one with a high payout for those who got in in time.

BTC has never been farer away from being a currency than it is right now. LOL!

Exponere Mendaces's picture


You just cut-and-paste the same old tired bullshit, eh?

Citing the TPS is a pretty technically ignorant move. You'd know if you followed such things that the Segwit/Lightning protocols are going to be enacted, enabling throughput that is competitive with anything Visa can do. But no, you are so CERTAIN and SURE that you are right, you just can't help but gargle your own foot.

Then the usual "government" blah blah blah... We get it, you want to take governments cock out and give it a good hand-job. Good for you. The rest of us want to free oursleves from the usual thinking that government needs to look out for us. But keep on using that fiat system, I'm sure that 19 Trillion in debt won't hurt you at all... LOL

You really are a card, I can tell you don't trade because if you put just one bit of energy into following a market instead of shitting all over it, you'd have some gains to show for it.

But for you, being an old geezer, this is all you can do -- and its pretty pathetic.


espirit's picture


Who’s going to be the first one here to buy a mega yacht?


AlaricBalth's picture

I can afford a virtual yacht. 

nmewn's picture

Don't forget to declare your virtual income  ;-)

Raffie's picture

I'll virtually declare you.



Exponere Mendaces's picture


You are so salty that your best counter-argument is "declare your income"?

I'd say declare yours from gold, but we all know that has-been hasn't done jack in a long time.

What a moron. But what else can you expect from some ZH commenter fossil.


TuPhat's picture

My thought exactly.  If it truly is international like its advocates claim, then the price would be the same everywhere.  The headline says it all.  Something is not what it claims to be.  I won't put my money in something that does not exist.  At least fiat is required to pay my taxes etc. so I have to use it but bitcoin can't even do that.

Mine Is Bigger's picture

It is due to the difficulty of opening an account overseas and sending money there, not because bitcoin cannot be moved across borders easily.

freedogger's picture

There's many services that let you do bill pay with bitcoin. One of the payee's is typically the IRS.

ZH Snob's picture

it is due to the currency differences of its price.

business as stusual's picture

What don't you understand about commerce? Someone has a product with the same price world wide. In some places demand is so great that outsized premiums are charged due to high demand. JUST LIKE THE GOLD AND SILVER MARKETS.

It is difficult to get a man to understand something, when his salary depends on his not understanding it.” 

Upton Sinclair-


Exponere Mendaces's picture

Do you trade? Because you sound like an idiot.

Are all markets perfectly efficient? And for that matter, are their bid//ask books exactly the same? Or how about local banking regulations and Wire/SEPA/ACH/SWIFT and other variables?

Because when any of those things are different, you get different prices from other markets.

Even in the world of stocks they aggregate exchange data to provide a national best bid/ask, because each exchange is DIFFERENT and offering different bids and offers at various prices.

But you clearly have some mental difficulties, so I won't go on and overtax your abilities.


(And saying Bitcoin has no utility because you can't pay taxes with it is probably the most retarded reply I've read about Bitcoin all day here. What a shill.)

Chuck Norris's picture

Where the hell is Fonestar?

Thought Processor's picture



By now I would imagine that Fonestar owns his own island somewhere.

Son of Captain Nemo's picture

"By now I would imagine that Fonestar owns his own island somewhere."

Wearin a Hawaiin shirt and sippin his Mai Tai(s) with his NSA buds Michael Hayden, Keith Alexander and James Clapper (when he's not testifying on Capital Hill)

Justin Case's picture

Where the hell is Fonestar?

Prison. IRS caught on to him from his posts on ZH. lol He didn't pay his taxes, cause nobody was supposed to be able to know how much money in capital gains he made. He's with Bubba and company.

sirsmokum's picture

You could take all the ETH they pay you to be an anti BTC shill and buy BTC with it.

Exponere Mendaces's picture

LOL, talk about a salty loser.

Suuuuure, he's in prison.... riiiight. I love how you craft these narratives for yourself, its like you're five years old hiding under the blanket during a thunderstorm.

Don't worry little johnny, big bad Bitcoin isn't going to hurt you...


Exponere Mendaces's picture

Laughing his ass off as his investment has returned hundreds of percent on average.

But of course, all the retards in the ZH comments section gave him shit about tulips too.... gosh, I wonder who is right... the losers, or the WINNERS?


Keep buying gold, you retards. Keeps you out of the way so there's more Bitcoin for the people who understand it.


silverserfer's picture

funny, you will soon truly understand what your "investment" truly is soon enough. You are allowed to think you got something by an entitiy that entirely intends on brainwashing you into thinking you have "wealth". But you already know this, otherwise you wouldnt be so pissy would you. Little fish, you're already in the whales mouth and you dont even know it yet.   

Exponere Mendaces's picture

Oh lordy, here comes the "serfer" telling me that I don't understand markets.

Guess what, we just had a healthy retrace. And it was glorious - it reset the curve we've been rallying on, which means it won't be going vertical too soon. That's important, and it matches behavior that Bitcoin has displayed throughout its trading history of eight years.

Its funny how the salty and bitter rationalize it. I'm "brainwashed" into thinking I have wealth? No, the market tells me I have wealth. I trade, ergo, I'm a trader. And when my P/L says I have a positive account, I know that I'm on the right side of the market. Your psuedo-jargon aside, that is how it is with any market. I fully expect this massive rally to conclude like it always has -- a substantial retrace that is above the prior all-time high. Every Bitcoin veteran knows it and expects it.

Its how we grow our wealth. And its happening for the fourth time, just like clockwork.

But keep telling me how my 600% on the year isn't "real".

I'll tell you what isn't real, the religious-zealot fascination with gold -- how's that been going for you? To me as a trader, it hasn't done jack shit. But maybe you deserve each other. You're both inert and lack any utility outside of hoarding. LOL


Al Gophilia's picture

The CBs better do something quickly about backing their currencies with something other than a jawbone or by using the tired gurantee of theiir cohorts in .gov, with their full faith and credit bullshit. The antidote to the abandoned currencies, because of the assurance of issuance limits of cyber coins, is to convince a faithless schlub saver, that they will reinstall a limit via backing it with you know what. They may have even pushed the barbarous relic thing just a little too far too, what with their confiscation threats via tax or physical theft. It all might be just a little too latye for the gang. Cyber coins may be all that's left.



Justin Case's picture

The CBs better do something quickly

Maybe they're working on a ransome ware to infect the block chain and encrypt the hard drive of the users. That way they can collect the taxes on everyone's good fortune, that thought they could hide from the IRS.

silverserfer's picture

only a fool would think that the CB's don't have control over and aren't already orchestrating digital currency flows with tracking. Wake up sheep! Its their little secret to follow money flosw for reasons other than you all making or losing a small amount of money. It is their tool of the future to control the masses just as fiat has been. Times are changing, game is the same.

Norwegianfish's picture

in 10 years bitcoin wille be worth $500k

Justin Case's picture

"in 10 years bitcoin wille be worth $500k"

or become the new history's largest scam next week. 50/50 odds.

affirmed_78's picture

At $2700 a coin, I'll take those odds.

Justin Case's picture

Mortgage the house too! Go big or go home honcho.

therover's picture

In 5 years we may all be dead.

David Bowie...5 Years

MadHatt's picture

you can do that at polonex I think...

lol... I dare you. :D

BTFDemocracy's picture

Short it on margin, see how that works out for you. Hahaha.

antaresteleko's picture

You will likely be trapped in a margin call. Be careful.

CJgipper's picture

Have the printing presses stopped?


Does your neighbor know what bitcoin is?  Ever even heard of it?


Then you haven't missed the boat.