Bitcoin Is Now Banned in South Korea By: Edward Schinik
South Korea has joined 7 other nations, which banned Bitcoin: Algeria, Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Morocco and Nepal. What does this mean for Bitcoin, which keeps on hitting new all-time highs?
South Korea Bans Bitcoin In December 2017, South Korea banned its banks from dealing with any cryptocurrencies, like Bitcoin. Experts estimate that 1,000,000 South Koreans own Bitcoin already. The country had accounted for 20% of global Bitcoin transactions. The South Korean Prime Minister’s Office banned initial coin offerings (ICOs). But, there still is a robust South Korean Bitcoin exchange, called Bithumb. Prices fell by 5% on this exchange.
Politicians Fear Bitcoin How can a nation ban an asset? Has South Korea banned paper cheques or gold? No. So, why would it ban all cryptocurrencies? Is it all over for Bitcoin? Out of fear. Unfortunately, nearly every old, outdated, crony political system has had the same exact response to cryptocurrencies: fear. Why? These politicians fear a currency that they cannot control. Fortunately, the 1,000,000 South Korean owners of Bitcoin have more freedom than the old politicians understand. Will South Korea turn off all of the computers in their nation and return to the Dark Ages? No. In general, South Korean politicians are demonstrating the failure of their government. A thriving government will incorporate new technology. It will help its citizens use any financial system that is deemed to be cutting-edge.
Bitcoin is hitting record all-time highs. Therefore, the vast majority of the world is showing that South Korea is behind the times. Modern American banks are using cryptocurrencies, such as Ripple, to complete their financial transactions.
Who Is Next? South Korea has banned its banks from taking Bitcoin. Isn’t South Korea, a Capitalist nation? Isn’t that why the Korean War was fought to contrast it with Communist North Korea? Communist nations own the banks, Capitalist banks are supposed to be free. Billionaire Marc Faber has noted that anyone who bets against markets, is the ultimate loser. Markets run circles around governments. Markets feed real supply and demand. A good example is the Black market. When South Korea or any government, artificially sets a benchmark for its currency, the Black market will create a real rate. People will ignore the government and sell merchandise based on the Black market rate. That is Economics 101. Trying to stop technology is like trying to stop a flood with a thimble. It simply doesn’t work. As Bitcoin increases in value to all-time highs, and even creates its scion, Bitcoin Cash, South Korea politicians quake in fear. So did American politicians. Years ago, American politicians quaked in fear of cryptocurrencies. But, instead of trying to stop the rain, American bankers got on board. Now, the rest of the world’s banks will gain a distinctive advantage over South Korea.
Can Bitcoin Be Stopped? Bitcoin can only be stopped by itself. Other nations might ban it, but that is unwise; you cannot stop the rain.