The cryptocurrency prices have been influenced mostly by extreme speculation in Asia, states Doctor Jack Rasmus, warning that a major correction will come in the near future.

“China and South Korea are aware of this; they know that bitcoin is a financial asset bubble, a classic bubble which is peaking out,” said Rasmus.

Rasmus, who is a professor of Political Economy at St. Mary’s College in California, said that a majority of the actions that involve cryptocurrency happen in Asia, particularly in Japan. This is because over 40% of all purchases come from this country. It is because of this reason that the crash will come from another part of Asia in the next 12- 18 months.

“China has always been opposed to bitcoin and Korea is now becoming increasingly concerned. Japan is going wild and I think the crash is going to come from Japan.”

He goes on to say that the forces of supply and demand that have taken the price of bitcoin to its all-time high at the end of last year are now disappearing.

“Those same forces that have caused speculative demand are now weakening and it looks very much like we are going to have a major correction with bitcoin and all the other altcoins as well.”

Cryptocurrencies are not subjected to taxation and regulation, which give speculators the opportunity to make special profits from pump and dumps. All those forces that have contributed to the rise in prices will now shift, Doctor Rasmus explained.

He added that blockchain technology is still relevant, seeing it as a real force which will grow and reduce corporate costs.

Rasmus views bitcoin as a commodity, rather than a currency.

“It’s not a currency; it’s a commodity like gold and gold futures. In my opinion, it will never become a true currency and if it threatens to become a currency you’re going to see the central banks issue their own digital currency as a way of driving down the price and taking the bubble out of commission,” he said.

Considering how the news about South Korea’s take on cryptocurrencies have influenced the market so far, it is not unlikely that Japan will have a similar effect in the future.