The Bitcoin's Growth is Driven by Millions of Asian Investors
December 15, 2017
The Wall Street Journal has analyzed the trading volume and announced that millions of investors in Asia were the main impetus for Bitcoin's incredible growth this year. Japan, South Korea, and Vietnam were responsible for almost 80% of the trading activity worldwide by the end of November.
South Korea in particular has registered a few jumps of activity last week, therefore local trade volumes have surpassed the U.S. With a population of only 51 million people, South Korean Bitcoin investments account for a quarter of the world’s trading. The demand among citizens has led to the fact that the values of the currency to peaks higher than those in the U.S. On one of the stock cryptocurrency exchanges, Bitcoin was traded at a price of almost $ 25,000. Meanwhile, prices in the U.S. have not yet reached $ 20,000 in most cryptocurrency exchanges.
What is more surprising is that apparently retail investors in Asia are responsible for recent growth of Bitcoins, rather than big investment firms and Wall Street workers who led past market rises like dot-com bubble.
Chris Weston, chief market strategist at IG Group, reported in the publication:
"It seems that this whole thing depends on the average user who most likely is not as financially literate as a professional fund manager."
It is reported that the "Asian wave" began in China, which was once responsible for large portion of the world trading volume. In the cryptocurrency heyday, the country was responsible for two-thirds of all Bitcoins daily released. One Chinese Bitcoin mining farm, based on thousands of computers, could account for almost one-twentieth of the daily production of cryptocurrency in the world. Nevertheless, the government banned the cryptocurrency exchanges and ICOs in September, although some exchanges still do survive in the "gray area" of the law.
A similar tendency for bans is also evident in other Asian countries. The top financial regulators in South Korea said on Monday that they were already considering a ban on Bitcoin transactions and were not going to authorize cryptocurrency futures trading that had been launched in the U.S. on Sunday. In addition, the country has already banned the ICOs.
Although Bitcoin is still legal in India, the country's central bank has already issued its third warning about the risks of investing in it. Market regulators in Hong Kong, where Bitcoin is also legal (since the region has separated laws from mainland China), said on Monday that some cryptocurrency exchanges might be illegally trading in futures.
Asia’s infatuation with Bitcoin is mirrored in the U.S., which is about one-fifth of the global trading volume. The app for Coinbase of the American Cryptocurrency Exchange was at the top of Apple's charts for the last week. Bitcoin futures soared, and then dropped off in the first couple days of trading at the Chicago Board Options Exchange. Nevertheless many market traders, who have profited from the cryptocurrency, seem to thank their counterparts in the East for this incredible growth.