South Korean millennials are keen to invest in cryptocurrencies more than any other generation presently, according to a new report by the Bank of Korea (BOK).
Not only are they interested but anxious to get in on the opportunity. Cryptocurrency trading has gripped the South Korean population and inspired a bandwagon effect in which the greater the hype surrounding a digital coin, the higher the number of locals who want in.
And it’s not just the young generation. Cryptocurrency fever appears to be spreading, as evidenced by support from the country’s baby boomer generation as well. The findings underscore the results from a recent survey done by local news outlet Yonhap, which revealed that the millennial generation was leading the way for bitcoin investing.
South Korea represents Asia’s No. 4 economy with a total population of approximately 51 million. It’s a unique cryptocurrency market and one to be reckoned with, reflecting approximately 12% of global BTC trading, as per Citi analysts, which also noted that bitcoin was “draining retail liquidity away from stocks.”
South Korea boasts higher premiums for cryptocurrencies versus exchanges in other countries. “The price in Japan and South Korea is higher due to local demand, so people from those countries are coming here to get a better price,” according to Aurélien Menant, CEO of Hong Kong’s Gatecoin exchange, quoted in the Financial Times.
The trifecta, or South Korea’s three largest bitcoin exchanges — Bithumb, Korbit and Coinone, represented more than half of XRP trading as of year-end 2017 and also dominate Monero volume. The regional market has such a hold on trading that a Ripple cross-border payments trial between Japanese and South Korean banks in December drove the XRP price higher by more than 70% in just 24 hours. The South Korean market had a similar impact on trading in Monero.
BOK polled more than 2,500 residents and found that more than one-fifth of them, or 21.6%, are hip to cryptocurrencies. If you ask young adults, they are more likely to provide a positive response, with about 29% and 40% of residents in their 20s and 30s, respectively, boasting knowledge of the market. Twenty-somethings were the most opportunistic, with 24.2% expressing a desire to invest compared to 20.1% of 30-somethings.
While only a small percentage of South Korean baby boomers know about bitcoin and altcoins, between 6.8% and 8.3% of residents in their 60s and 70s are supportive of the market.
A couple million locals are said to be invested in the leading digital coins, according to Yunhap.
Featured image from Shutterstock.
Last modified: May 20, 2020 8:56 PM UTC