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Kyoung Jin Choi
University of Calgary
2018
Bitcoin Microstructure and the Kimchi premium

Between 2013 and 2018, Bitcoin were in Korea on average 3.2% more expensive than in the United States, a fact commonly referred to as the Kimchi premium. The author argues that frictions within the microstructure of the bitcoin network as well as capital controls imposed by the Korean government limit the ability of arbitrageurs to take advantage of persistent price differences.