Korea’s Crackdown On Bitcoin Is Good For Global Cryptocurrency Market

South Korea announced this week that it would roll out new regulations to govern the emergency of the growing cryptocurrency industry in the country. Some cryptocurrency analysts are concerned about these new restrictions limiting the cryptocurrency industry but BitSpread founder and CEO Cedric Jeanson says that this is a positive move for the cryptocurrency market.

The South Korean government announced this week that it is planning to ban anonymous cryptocurrency accounts as well as close virtual coin exchanges. The government has made its stance very clear on cryptocurrencies and stated that it will not function as real currency.

The news of restrictions on cryptocurrency has not stopped South Korean traders though, as trends have shown that prices in that market are still higher than any other market in the world. Jeanson echoes these positive sentiments stating that whatever the South Korean government has rolled out is quite normal and there should be no concerns over what regulations are doing to ensure investors are dealing with an orderly market.

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Bitcoin, the most popular cryptocurrency is expected to have a wild ride in 2018 to say the least. According Nick Colas of Data Trek Research, Bitcoin is expected to have a large range of ups and downs in the coming year with values ranging from $6,500 to $22,000 per Bitcoin. The BitSpread CEO also believes that Bitcoin will continue to be volatile throughout 2018. In a statement, Jeanson said “You can see throughout the various waves, there is always a retracement of 30 percent for the price of Bitcoin. Like in any other market, we've seen that in equities, we've seen that in commodities, it's quite a usual kind of a pattern to be honest. I think there is going to be certainly some upside on this market”.

Jeanson also believes that cryptocurrencies such as Bitcoin could actually play a huge role in the global economy moving forward provided key issues are dealt with swiftly. The biggest concerns over Bitcoin becoming a viable means of exchange are with regards to the security of currency and transaction speeds. Bitcoin has come under fire in the past due to its slow transaction speeds and security issues. Experts also believe that the amount of time and money it takes to mine Bitcoin is a critical flaw that prevents it from becoming a digital substitute for government issued money.

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