1 out of 5 young Koreans is buying bitcoin. “Middle-aged people don’t let us speculate in real estate?”

I may never be able to buy a house without taking the risk.

Bitcoin plummeted, and perhaps the most painful are the young Koreans.

Since hitting a record high price of $68,928.9 per piece in November 2021, Bitcoin has entered a volatile downward channel and has fallen by more than 70% so far. In particular, the recent interest rate hike by the Federal Reserve has aggravated investors’ concerns about a recession, and the price decline of many cryptocurrencies in the market has intensified.

On June 18, Bitcoin once fell below $18,000 per piece (about 120,000 yuan).

And 1 in 5 young Koreans is speculating on coins.

According to the Korea Financial Services Commission (FSC), there are 3.08 million cryptocurrency holders aged 20-39, accounting for 23% of South Korea’s population of this age group (13.431 million).

Behind the prosperity of South Korea, one in five young people want to make a fortune through cryptocurrencies

Kim Ye-won, in her 25s, returned from studying abroad and worked for a large company, but her salary simply could not afford a small apartment in Seoul. She has invested more than 50 million won (approximately RMB 260,000) in the bitcoin market, checking the market on her mobile phone every day, and regards this as “the only way to get ahead”.

Now it seems that this dream is a bit far off.

“The recent blow has made me unbearable, but I can’t help it,” said Jin Yiyuan.

At 12:00 on June 20, Beijing time, the price of Bitcoin barely climbed to 20,051.7 US dollars per piece (about 130,000 yuan), but for young Koreans, this increase is not enough. If an investor bought 3 bitcoins at the high point at the end of last year (that is, $68,928.9 per piece), the loss has now reached 193 million won (approximately RMB 1 million).

multimillionaire

28-year-old Park Yuzhen lives with his parents. After graduating from college, he worked for a while, but soon quit his job to focus on bitcoin speculation at home.

Park Yuzhen did not dare to tell his parents that he had lost all his money recently, and the losses had reached tens of millions of won. In an interview with South Korean media, he had red eyes and disheveled hair: “It’s not fair that people call speculating money gambling, but I admit, they have some truth in what they say.”

Today, the cryptocurrency market in South Korea is full of young speculators like this: they are mainly 20 to 40 years old, many of them are highly educated, and they even quit their jobs in big companies to speculate on coins. life trajectory.

In the eyes of young Koreans, if you give it a try, maybe you will have a chance

In March 2021, 29-year-old Jiang Jitai, Ji Shiying, and Han Zhengzhu resigned from the big financial company. The three of them are good friends, and their family background is very average. When they just graduated from college, they were still carrying student loans.

The turning point in their lives came after investing in virtual currencies. After the 3 people worked, they loaned 100 million won together to speculate in Bitcoin. In 2021, when the market was booming, the three of them suddenly became rich with 3 billion to 4 billion won (approximately RMB 15.6 million to 20.8 million yuan). .

In particular, on the evening of October 20, 2021, the price of Bitcoin broke through the all-time high of $64,843 set on April 11, 2021, reaching $66,000, an intraday increase of 5.64%.

At that time, their parents and seniors in the company persuaded them: “Or continue to work and use the money to buy a house in the Gangnam district of Seoul.” All 3 refused. They even resigned together and continued investing in virtual currencies. Ji Shiying deposited 90% of her 3 billion won assets in bitcoin and ethereum. Jiang Jitai invested 60% of his funds in virtual currencies such as Alt, and also invested in NFTs and overseas stocks.

None of the three thought that a year later, Bitcoin would plummet in such a tragic way.

But there is too much investment in the early stage, and they dare not and cannot give up now.

Han Zhengzhu believes that we should take a long-term view and should not only focus on short-term investments. He said: “It is uncertain whether we can make money through virtual currency within 3 months. We have to look forward to the next 5 years or even 10 years.”

According to FSC statistics, as of the end of December 2021, the actual number of users participating in transactions on South Korean virtual asset exchanges reached 5.58 million, of which 30 and 20 years old accounted for the highest proportion, reaching a total of 3.08 million.

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The traditional path of happiness is out of reach

In the first quarter of 2021, according to Korean party statistics, there were 2.5 million new accounts on the four major cryptocurrency platforms in South Korea, of which 33% were in their 20s and 31% were in their 30s.

A survey of South Korean college students showed that 53% of them are positive about investing in cryptocurrencies, 33% believe that the high rate of return is the reason for their interest, and even more than 10% of the respondents believe that cryptocurrencies are the reason for their interest. The “last chance” to achieve a class transition.

“Learn from you”

Young people in South Korea are becoming more and more pessimistic about the traditional way of struggle.

Economic pressures have led young people to believe that the traditional paths to happiness that their parents took – getting married, buying a house and having children – are now largely unworkable. These young people found that South Korea is facing the highest housing price increase in the world. Even if they become the most talented people who have fought all the way to the top of the workplace, they cannot afford to buy a house with their income from work alone.

What’s more, in 2021, a report released by the Korea Economic Research Institute pointed out that in 2020, about a quarter of young people (15 to 29 years old) in South Korea will feel unemployed, which is the highest increase in history. In another survey, more than half of young people said they could not afford to buy a home without the help of their parents.

Investing in cryptocurrencies has become one of the few options that can reverse the fate of young people.

A young South Korean said in an interview: “I was indifferent at first, but the experience of my colleagues has completely changed my mind. If I don’t take risks, I may never be able to buy a house.”

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In the eyes of young Koreans, there is a high probability of losing if you try, but you will definitely lose if you don’t.

Another young man said: “I know that in the virtual currency world, there are a lot of premiums and bubbles. However, as long as I can make money, I really don’t care too much about this.”

According to the latest data from the FSC, the current value of the South Korean cryptocurrency market has reached 55.2 trillion won (about 290 billion yuan), and the total daily transaction volume is 11.3 trillion won (about 60 billion yuan).

Bitcoin is the most popular cryptocurrency here, but it accounts for less than 10 percent of virtual currency transactions in South Korea. More than 90% of the other currencies are altcoins, i.e. currencies other than Bitcoin — including some virtual currencies of unknown origin.

Across South Korea, there are 623 cryptocurrencies listed on local exchanges.

But the FSC warns that more than a third of these cryptocurrencies are down more than 70% from their all-time highs. South Korea’s financial regulator also reminded that there are a large number of virtual assets with large price changes in these local exchanges, and users should be cautious when investing. These virtual assets are only listed on specific exchanges, and the investment risk is high.

Previously, due to the collapse of the South Korean virtual currency Luna coin and the stable coin “TerraUS” (UST coin) (from a single currency price of up to $119.5 to less than $0.0002), more than 200,000 people in South Korea suffered losses, and the global virtual currency market was affected. Huge impact.

The regulator said it would implement and amend various bills to crack down on scams, money laundering and other illegal practices.

However, various measures and warnings are almost ineffective, and more and more young people are still investing in cryptocurrencies through debt and financing. The Bank of Korea said that among young people between the ages of 20 and 39, household debt has grown by more than 17 percent.

Kim So-young, an economics professor at Seoul National University, said: “The borrowing level of young people is not high, so the bankruptcy of this part will only have a slight impact on the financial system. However, young people who are about to enter the labor market are going bankrupt and cannot plan for the future. , which will take a toll on the entire economy.”

Eun Sung-soo, chairman of the FSC, harshly criticized these young people flocking to the cryptocurrency market at a hearing.

Eun Sung-soo believes that cryptocurrencies are “not securities subject to the Capital Markets Act, but virtual assets with no known content.” He declined to refer to people buying cryptocurrencies as “investors,” saying: “The government has no obligation to protect them. If they (young people) go astray, we adults must warn them that they are making a mistake.”

Eun Sung-soo’s remarks sparked fierce rebuttals from young people. A company employee in his 30s launched an online petition calling for Eun Sung-soo to resign.

“You people in your 40s and 50s are speculating in real estate, disrupting our national economy and people’s livelihood. What about our 20s and 30s investing in virtual currencies? We can also learn a lot from you adults. .” The young clerk quipped.

The sarcastic comment immediately received more than 200,000 likes online.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/1-out-of-5-young-koreans-is-buying-bitcoin-middle-aged-people-dont-let-us-speculate-in-real-estate/
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