Korean tech giants are also reportedly coming up with their own measures to incorporate cryptocurrencies into their business. Samsung Electronics, for example, has allowed consumers to conduct digital currency transactions on its Galaxy S10 smartphone.

Kakao, the country’s biggest mobile messenger app, also plans to create its own cryptocurrency called Klay. Developed by its affiliate Ground X, the coin will be available on its blockchain platform Klaytn, scheduled to be launched late next month.

Some industry watchers attribute the price surge to the escalating trade dispute between the US and China. They speculated that jittery investors are using cryptocurrencies as a hedge against growing market uncertainties.

“It’s certainly interesting that the (Bitcoin) price started accelerating when the trade discussions broke down,” Barry Silbert, CEO and founder of Digital Currency Group, said during an interview with Fortune’s Balancing The Ledger show.

Despite efforts by tech companies to build their own cryptocurrencies and launch projects using the underlying blockchain technology, some experts expressed caution against overheated enthusiasm.

According to In ho, who runs Seoul-based research institute Korea Society of Blockchain, the latest Bitcoin price surge had less to do with external factors. He said it was a regular price fluctuation caused by market principles.

Bitcoin was designed to slash its production in half to prevent inflation from eroding the value of digital assets. While the investors have to wait until next year for the next “halving,” expectations of reduced supply appear to be reflected in the latest surge, he said.

“Price fluctuation is part of the nature of Bitcoin. It has been volatile regularly since its creation,” the experts said. “Every time we wait for a halving, there are expectations of increased demand and reduced supply. It’s simple logic.” 

(jasonyeo@heraldcorp.com)