Most South Koreans seem to be smitten by Bitcoin and the concept of cryptocurrency at large, be it due to their passion for technology or becoming a millionaire in a short time.
It is no wonder that countries such as Japan and South Korea have always been at the forefront as far as cryptocurrency investments are concerned.
ICO Ban Does Not Seem To Have Affected Cryptcurrency Investments in South Korea
The interesting part is that in these countries it is not only millionaires who have invested in a number of cryptocurrencies but also salaried employees. And this is despite several debates over the risk of investing in cryptocurrencies, regulating them, and banning of ICOs in South Korea and China. All these developments gathered momentum over the last six months or so.
There are talks of bringing in regulation and transparency in cryptocurrency transactions in South Korea. More and more exchanges are agreeing to the terms by the Korea Blockchain Industry Association.
In fact, this will bring in security and consumer safety. So, in a way, this will be a boon to people dabbling in safe investment tools to give cryptocurrency investments a try. Most of these rules are said to be applicable from January 1, 2018. (Source: Moves in South Korea to make cryptocurrency trading more transparent, Reuters, December 27, 2017)
Possible Reasons for Increasing Number of Salaried People Investing in Cryptocurrencies
So, let us try and analyze the reasons why so many salaried people tend to invest in cryptocurrencies especially in South Korea and Japan. One of the obvious reasons is the tendency to make quick money among today’s youngsters.
A survey shows that out of 941 salaried people, 31.3% invested in various digital currencies. (Source: 31% of workers have invested in virtual currencies: survey, Korea Herald, December 27, 2017)
As mentioned above the regulation, identification of account users, and transparency efforts taken by the country’s exchanges and the Korea Blockchain Industry Association would definitely benefit this market and increase the number of skeptical users in the future. But the ongoing talks, debate, and implementation of bringing in the required transparency already seems to have encouraged a few new users to take the plunge.
A general human tendency is to create a bigger demand for something that already has a high value. What we mean is now Bitcoin has risen to astronomical heights, so more and more people are bound to invest in this cryptocurrency and further increase the demand. So, in short, it is all about masses turning towards popular alternatives for their own gains.
Another reason for an increased number of youngsters investing in cryptocurrencies could be the way they use technology compared to the older lot. Also, they tend to spread the word through social media, word of mouth, and other tools.
So, perhaps these could be a few reasons for the increasing number of cryptocurrency investors in the country. Bitcoin and Ethereum among other cryptocurrencies have already gained traction in the country.
So, to us, it looks like the virtual currencies market in South Korea is already thriving and is estimated to grow exponentially in the future. This would also be one of the first cryptocurrency markets with a regulatory body identified by the government of that country. The recent developments regarding transparency, especially, would only help it grow further.