Summary:
3% premium on Bitcoin for South Koreans vs U.S. prices
Bitcoin priced at 145,000,000 won ($98,600) on Upbit
Political instability linked to the rise in Bitcoin demand
Won hits a 15-year low against the dollar
Impeachment of leaders raises concerns over democracy and trust
Bitcoin's Kimchi Premium in South Korea
As South Koreans face economic uncertainty, the Kimchi Premium on Bitcoin (BTC) has spiked, with locals paying 3% more than their U.S. counterparts. This premium reflects a growing desire for financial security amidst the plummeting won.
Currently, Bitcoin is priced at 145,000,000 won (approximately $98,600) on Upbit, South Korea's largest crypto exchange, compared to about $96,700 on Coinbase. This difference highlights the increasing demand for BTC as a hedge against the won's decline, which has hit a 15-year low against the dollar.
Political Turmoil and Economic Impact
The surge in Bitcoin's price correlates with a recent political crisis in South Korea. The parliament voted to impeach Han Duck-soo, the prime minister and acting president, just weeks after the impeachment of President Yoon Suk Yeol. This political instability is causing significant economic distress, as noted by Jeff Park, head of alpha strategies at Bitwise. He remarked that the situation illustrates the erosion of trust in South Korea's National Election Commission (NEC) and serves as a warning for democracies globally.
In summary, the Kimchi Premium is not just a financial anomaly but a reflection of the broader socio-political landscape in South Korea, driving citizens to seek refuge in cryptocurrency amidst turmoil.
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