Cryptocurrency booms in South Korea: What is PrivacySwap’s take on it?
South Korea is one of the world’s fast progressing countries. Being the home of Kpop, Korean drama, and famous brands such as Samsung, LG, and Hyundai, Korea is indeed one of the most influential countries to date. Aside from that, the country is also known for its primarily cashless system, from buses, markets to restaurants. South Koreans opt to use their debit and credit cards rather than cold cash on their daily transaction.
However, the advancements and great technology come with consequences: the cost of living. Living in South Korea is not as expensive as neighboring countries like Japan but not as cheap as in China and Laos. However, the unemployment rate for young adults has become one of the reasons why living in South Korea is quite challenging, especially in its capital, Seoul. It was reported in 2020 that the youth unemployment rate reached 7% to 11%, and they’re around the same numbers this year.
With that as context, cryptocurrency became a savior to most especially to the youth. South Koreans see cryptocurrencies as a way to better and faster financial freedom. In addition, cryptocurrency is known for its permissionless system that allows anybody to invest without undergoing strict verifications and requirements. So how does the crypto frenzy affect the locals’ lives?
The Crypto Frenzy: How does it affect South Korean lives?
Since the market bear season last 2018, South Korea has become one of the countries that trade cryptocurrencies. One factor behind the trend is people’s familiarity with micropayments. Micropayments are those commonly done online that is less than a dollar. In addition, people saw how others earn millions of won overnight from investing in cryptocurrency.
To give you an idea of how popular cryptocurrency is in South Korea, a survey of 1,885 workers said that 40.4 percent of them have invested in bitcoin. Also, 49.8 percent of South Korean workers aged 30 to 39 stated they had invested in cryptocurrency. Workers in their twenties came in second with 37.1 percent. Moreover, 53% of college students show a positive response in investing in Cryptocurrencies. These numbers made the country the 3rd largest cryptocurrency adopter in the world in 2019.
But these numbers come with upshots.
Computer shops, or what Koreans call “PC Bang,” are trendy in the country, so higher graphic chips that can support extreme gaming are necessary for computers. However, graphic cards are the hardest to collect as computer developers compete with crypto developers due to higher demand. Crypto developers also need higher graphic cards to encode thousands to millions of crypto investors’ information to the blockchain network.
Moreover, the crypto craze in the country leads to various downfalls that could affect Korean crypto investors in the future. Cryptocurrencies’ success is unbelievable, leading to skepticism and doubt for those unfamiliar with the system and the government.
What holds back the others from investing in crypto, though?
Despite how profitable cryptocurrency is to most Korean investors, many are still turning their heads away from digital currency. What’s holding them back, though?
We believe that it is not just South Koreans who think that crypto is just a mere bubble. Everyone does. However, these are the people who are mostly unfamiliar with the ecosystem or scammed by some platforms. In short, those who hold back in investing are unaware of the passive income crypto could offer.
Moreover, Asian Boss did a survey asking if Koreans invested in Crypto. Seventy-three respondents from 100 participants answered “No” to the study. Though it is greater than those who answered “Yes,” People who said “no” show interest in crypto, and some already tried investing in such currencies. Nevertheless, the interest respondents portrayed is a great sign that Koreans’ are really into earning money and are willing to learn more to invest in crypto.
Furthermore, Bank of Korea’s Governor Lee Ju Yeol said that cryptocurrency has no intrinsic value, and the main reason for the expensive price is unintelligible. Moreover, Lee added that he is not bullish about cryptocurrency, but crypto has excellent potential if this was done right.
Nevertheless, the cryptocurrency trend in Korea remains the same, and more people are still coming into the ecosystem.
Micropayment trends, online and cashless payments, unemployment rate, and a great source of passive income are the main reasons why cryptocurrency trends in South Korea. As we close this article, this is the best time to answer the question, “ What is PrivacySwap’s take on the trend?”
After analyzing the reasons behind the trend, PrivacySwap saw how important it is to have an extra income, especially during these times. The covid-19 pandemic dragged down the world’s economy, and South Korea is not excluded from such a dip. However, with the help of cryptocurrency, most people who engage themselves in the platform never lose hope, and most of them experience the greatest reward from digital currencies.
PrivacySwap also has the same vision to give the best return as soon as reasonably possible. PrivacySwap also finds it fascinating how the country mainly uses cards instead of cash in their daily transactions. This aligns with PrivacySwap’s mission, to create a seamless transaction of fiat to crypto and vise versa. That is why they introduce their PrivacyCard, which will do such a job.
The platform also aims to reduce the third parties behind every transaction, which will also eliminate costs. Therefore, investors will gain more from their investments.
Furthermore, it seems that Korean investors and the PrivacySwap core team share the exact visualization in the world of finance. It is to make earning money easy, swift, and passive.
Got any questions? Let us know.