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By CNBCTV18.com Aug 4, 2022 9:15:28 PM IST (Published)
While Kimchi Premium generally refers to a difference in Bitcoin prices, it is also applicable on other cryptocurrencies. You should also know that this increased pricing phenomenon is not restricted to just South Korea either.
When something receives as much attention as Bitcoin has, even small intricacies surrounding the subject can turn into global phenomena; this is what happened with the term 'Kimchi Premium.' People were intrigued when the phrase first started making rounds within the cryptosphere in 2016.
Kimchi is the South Korean equivalent of a pickle that consists of salted and fermented vegetables. Kimchi is either mixed with curries and soups or served on the side with food. It is a well-known staple that has become synonymous with South Korea. But why does Kimchi have anything to do with Bitcoin? Let's find out!
What is Kimchi Premium?
Kimchi Premium is the name given to the price difference between Bitcoin on South Korean crypto exchanges and the world markets. This discrepancy usually ranges from 3 percent to close to 20 percent. It is called Kimchi Premium because the phenomenon is restricted to South Korea, which is known for its Kimchi. It could have been called South Korean premium too, but where's the fun in that?