As the heat builds up and the South Korean government approaches a decision on whether or not to ban local cryptocurrency trading, it’s important to remember this is only one part of the market.
Even if it bans this practice, other countries will march to the beat of their own drums.
At least it appears so, judging from what some of the executives participating in the North American Bitcoin Conference in Miami had to say.
“It’s impossible to ban Bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular,” declared Francesco Nazari Fusetti, CEO of Aidcoin and CharityStars.
The Bitcoin frenzy of 2017 appears to be over. The cryptocurrency surged during the year, smashing record after record, but it started 2018 in a downward spiral.
These events have prompted the South Korean government to put a lid on Bitcoin trading, thus hoping to end speculation from local investors.
Liquidity issues in the country’s exchanges coupled with restrictive forex rules have left the cryptocurrency trading at a 30% premium compared to the rest of the world.
Trevor Koverko, CEO of Polymath, said that South Korea’s intervention in Bitcoin might “squeeze the already heated […] market, further drive up spreads to other markets, and push order flow outside the country.”
This ban wouldn’t be the worst thing to hit Bitcoin, however. The hacking incident at Mt. Gox in 2014 threw the market into disarray although it started recovering in 2015.
Eran Eyal, CEO of Shopin, doesn’t think that regulatory actions would doom Bitcoin or other cryptocurrencies.
“You have to think of what the general trajectory is and the general trajectory is upward for cryptocurrencies and Bitcoin,” he said.
On the other hand, experts at Capital Economics believe that Bitcoin’s trajectory—at least for the foreseeable future—is downward.
“Most people are buying Bitcoin, not because of a belief in its future as a global currency, but because they expect it to rise in value. Accordingly, it has all the hallmarks of a classic speculative bubble, which we expect to burst,” the company said in a research note.
At this moment, Bitcoin is making anemic gains, but recovering nonetheless. This morning, it climbed 0.81% and is now trading at $11,880, an improvement over the $9,500 sinkhole it was in yesterday.