[2018-01-01] Is Kim Jong Un Responsible For Bitcoin Price Gains?

[Terraformer]

Is North Korean dictator Kim Jong Un behind bitcoin's wild price swings? That's what some observers suggest.

Some of the biggest news in the cryptocurrency space is the spectacular recent price spikes of bitcoin and other digital currencies. Bitcoin climbed by about 20 times in value from the beginning of 2017 to its highest point, just shy of $20,000 per coin, toward yearend.

Although the price of bitcoin slumped into the start of 2018, it is nonetheless significantly higher in value than it was at this time last year. A number of factors may have contributed to the stellar gains, including the growing fervor among investors and anticipation of broader uses for digital currencies in the near future.

Possibility of Cryptocurrency Funding

TechCrunch speculates that because of massive international sanctions which have been put in place to deter North Korea from developing nuclear weapons, the regime has historically found "side businesses" to gain additional funding. One of these could be cyber-piracy. (See also: How the North Korea Economy Works.)

In this scenario, the regime gains access to digital currency holdings, work to pump up the prices of those assets, and then dispose of the coins to continue to finance its activities.

There are reasons to believe that North Korea may be behind several recent hacks aimed at stealing digital currency holdings. (See more: Can Bitcoin Be Hacked?) A spearfishing campaign which targeted bitcoin traders, a series of hacks on the South Korean exchange Youbit, and other hacks on South Korean targets may all have been orchestrated by the North Korean government.

TechCrunch says the regime is "actively hacking the bitcoin and cryptocurrency ecosystem in a push to gain as much cryptocurrency for the regime as possible."

Price Pumping

But there could be more to the story than just these thefts. Experts say the cryptocurrency gains in the past several months were fueled by a flurry of activity in Asian markets.

The rise of digital currencies in the region "is certainly fueled by a desire for quick returns, a lack of access to strong investment opportunities," and "the instability and uncertainty of North Korea," according to TechCrunch.

Through its actions – including the continued destabilization of international markets and the hacks of digital currency exchanges and traditional banks – the North Korean regime may be aiming to drive up the price of digital currencies so it can take advantage of the relative anonymity these investments (or illicit holdings, as the case may be) afford. (See also: Bot Activity Plays Major Role in Cryptocurrency Price Swings.)

https://www.investopedia.com/news/kim-jong-un-responsible-bitcoin-price-gains/

[richardsNY]

Theoretically, you can link everything to certain events or entities, but it's all meaningless since there isn't a way for anyone to come up with proof. I personally add more value to a wider field of adoption, plus the fact that the fear of missing out contributes to growth as well. Especially the latter has been a major reason as to why we went up so quickly to peak almost at $20k not that long ago. It's however no coincidence that if the price is going up, the growth is linked to illicit practices, where WannaCry was mentioned to be the reason for growth at that time. Some people don't believe that Bitcoin can actually grow without being linked to criminals and terrorists....

[1Referee]

It's however no coincidence that if the price is going up, the growth is linked to illicit practices, where WannaCry was mentioned to be the reason for growth at that time.

I laughed so hard at the time the mainstream media was stating that. According to them, businesses world wide were stacking up Bitcoin just in case a potential ransomware infection would strike them, which caused the price to increase exponentially. I don't even understand how these idiotic news sources don't hire people who are actually understanding how everything related to this market works. Bitcoin is either used by criminals, or a plain bubble, or a hype that will soon dry out. There is not a single thing in Bitcoin for them that gives them at least a slight clue of why people are investing in Bitcoin, and why it keeps gaining traction. Instead of always inviting traditional market analysts and other idiots, bring in knowledgeable individuals with a crypto backgroud who can explain how everything works, etc.

[gentlemand]

Surely the DPRK would be a net dumper, certainly a not a pumper. They want hard currency in their shell accounts and I'm sure they're out there somewhere. All of this hacking gives them crypto they need to sell.

[iamTom123]

Theoretically, you can link everything to certain events or entities, but it's all meaningless since there isn't a way for anyone to come up with proof. I personally add more value to a wider field of adoption, plus the fact that the fear of missing out contributes to growth as well. Especially the latter has been a major reason as to why we went up so quickly to peak almost at $20k not that long ago. It's however no coincidence that if the price is going up, the growth is linked to illicit practices, where WannaCry was mentioned to be the reason for growth at that time. Some people don't believe that Bitcoin can actually grow without being linked to criminals and terrorists....

We live in a world of information and data and yet we still love to speculate too and make some believable and unbelievable conspiracy theories. Of course, anything is possible but without solid proofs what we believe can just be speculative at best. I am sure that what happened with NoKor in 2017 contributed some to the rise of Bitcoin but putting more credit to that regime may not be acceptable. I am pinning more weight with the adoption and speculations that happened in 2017 to be the top factors for the rise of the coin. In 2018, we might see a sluggish Bitcoin in the midst of its continuing problems like the high transaction fees and clogged network.