Bitcoin rise due to clueless noobs in South Korea and Japan, analysis confirms: Speculators all hope to buy low and sell high (and they will get burned badly)
by: Ethan Huff
NaturalNews.com
Monday, June 19, 2017
Asian investors are going haywire over the prospect of becoming independently wealthy from investing in bitcoin, the popular “crypto” currency that has risen in value by an astounding 150 percent since the beginning of the year. But this decentralized medium of exchange could be in the midst of a giant bubble, which means that many people could end up dead broke, should the bubble eventually burst (which many are suspecting).
According to reports, everyday folks like “Mrs. Watanabe” – a metaphorical name for the archetypal Japanese housewife who seeks to make the best of her family’s savings by investing it – are jumping on the bitcoin bandwagon by the thousands. Not only the Japanese but many South Koreans are investing their life savings into bitcoin, believing it to be the answer to low interest rate woes and flailing economies.
The surge comes after Japanese law was recently changed to recognize bitcoin as an official legal currency. Trading volume on all of the Asia-based exchanges took off after this move, which is driving the price of bitcoin to the upper limits. In South Korea, for instance, bitcoin has been fetching a $400 premium on top of its already inflated value in U.S.-based exchanges – with no end in sight.
“After I first heard about the bitcoin scheme, I was so excited I couldn’t sleep,” one woman by the name of Mutsuko Higo told Reuters during a recent interview. The 55-year-old social insurance and labor consultant from Japan recently bought about $1,800 worth of bitcoin to supplement her retirement savings, in the hopes that it will serve as a failsafe catch net.
“It’s like buying a dream. Everyone says we can’t rely on Japanese pensions anymore. This worries me, so I started bitcoins.” (Related: To keep up with the latest news on bitcoin and where it’s headed in the financial markets, be sure to visit Bitcoin.Fetch.News.)
Bitcoin shouldn’t be used as a speculation instrument
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