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In South Korea, more than , people have now signed a presidential petition imploring the government to reconsider a proposal to crack down on cryptocurrency -— an extraordinary public outcry and a clear sign that in South Korea, the failure of a virtual economy would have very real consequences. South Koreans have good reason to fear any crack in the collective belief that keeps cryptocurrency values so high. Vicky Redwood of Capital Economics, a global economic research firm, says that cryptocurrencies are only popular because the prices keep climbing.
Most people are buying bitcoin simply because they expect it to go up in value further. In , the year of skyrocketing values, many young South Koreans became obsessed. They were called bitcoin zombies -- too mesmerized by the tickers, charts and promises of digital wealth to take care of real world stuff -- like sleep.
There were raids on cryptocurrency exchanges, and then last week Justice Minister Park Sang-ki threatened to ban trading altogether. On Tuesday, South Korean President Moon Jae-in cautioned his cabinet against voicing their personal views before the government has reached a position on cryptocurrency, but the damage was done.
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