Bitcoin Is Surging as Asian Investors Climb Aboard
Money + Markets

Bitcoin Is Surging as Asian Investors Climb Aboard

Benoit Tessier





"There were some people that made a big profit in a short time and it got more media attention. Then even people that hadn't known about virtual currencies began coming in, thinking it can be a way to make big money in a short time," said Kim Jin-hyeong, an official at Coinone, a South Korean cryptocurrency services provider.

Bobby Lee, CEO of BTCC in Shanghai, one of the world's largest bitcoin exchanges, said the global macroeconomic environment, which has seen sustained low interest rates, was conducive to investments in alternative assets like gold, silver and bitcoin.



"In the past, bitcoin was traded only by the people who have been dealing with crypto-currencies. This year, regular people are starting to join, making trading so volatile," said one Japan analyst.


Bitcoins are created through a computing process known as "mining" but the total number of bitcoins that can ever be created is capped at 21 million globally meaning an inflow of new investors is able to dramatically inflate prices.


"Retail investors who might otherwise have traded stocks or an exchange traded fund are now trading bitcoins," said Leonhard Weese, president of the Bitcoin Association Hong Kong and a bitcoin investor.

"Suddenly everyone is realising that there will only ever be 21 million bitcoins and that this might be there last chance to get into the market - and that is what is leading to these huge price spikes."

(Reporting by Michelle Price in Hong Kong, John Ruwitch in Shanghai, Joyce Lee in Seoul and Hideyuki Sano in Tokyo; Editing by Simon Cameron-Moore)