The increase of the Bitcoin value and the huge amounts of money brought forward by investment funds and people hoping to get rich overnight has stirred authorities in South Korea who are afraid that the bubble might break and the losses will be felt in the economy.
Looking more and more like a Ponzi scheme, the transaction fever that makes people from all over the world invest their savings in buying virtual currency hoping to get rich is becoming more and more worrying. With a quotation of $17,000, the Bitcoin is 20 times more expensive than it was at the beginning of this year and the temptation of making money is attracting investors to buy, anticipating the opportunity of selling at a significant profit later.
If the Bitcoin increase is entertained by the availability of buyers to support the cost, logically the sale has the opposite effect and the perspective of a panic entertains the mass sale of the virtual currency can make it impossible to recoup the investment for those who failed to sell at the right time.
While the United States of America has accepted the Bitcoin on the stock market, the South Korea authorities are considering taxing virtual currency transactions. Considering that Bitcoin transactions in Japan and South Korea represent more than half of the Bitcoin transactions, the worry is justified as the appearance of some significant losses can drag down the economy.
Besides taxing the Bitcoin transactions, South Korean authorities are also considering an injunction to stop minors from creating accounts on trade websites. Moreover, virtual currency investors active in South Korea will be obligated to adhere to local regulations to protect investors and to reveal offers and amounts of money invested.