New Nonprofit Organization Survey: Average South Korean Investor Bought $6,000 Worth In Crypto
Understanding the state of cryptocurrency starts with knowing how involved the public is in it. The Korea Financial Investors Protection Foundation (KFIPF) recently performed a survey to learn more about South Korean investors and their interactions with cryptocurrency, which is the second survey of its kind from the organization.
Though the survey in 2017 discovered that the average amount that investors purchased was around $3,660, the latest research shows an average of $6,000 spent with each investor.
Along with the growth of about 64%, the research showed that the demographics of the investors involved has changed a lot as well. Based on data from last year, the group of people that was most likely to purchase Bitcoin or crypto assets was in their 50s.
The groups that fell after that group were individuals in their 30s and 40s, in that order. Considering that the most popular groups in other areas are usually millennials and younger individuals, the fact that the older generation has been so involved is surprising.
According to Korea Financial Investors Protections Foundation, average amount invested in crypto by investors in their 40s and 50s doubled in South Korea.
It also found the number of investors invested in the crypto market increased from 6.4% to 7.4%.https://t.co/fg8dSU62jI
— Joseph Young (@iamjosephyoung) April 22, 2019
The KFIPF ultimately took a survey to 2,500 participants, though only 7.4% of those people said that they had invested in the digital asset market. In 2017, the numbers were a whole 1% lower, which suggests that the involvement of South Korea n citizens has not significantly increased, which coincides with the rough bear market until then.
Still, that 7.4% comes up to 3.88 million people in the country, so the involvement is still fairly substantial.
The individuals that are not involved yet in cryptocurrency are the ones that are still nervous about the market’s volatility. In order to pursue widespread adoption, there are certain challenges like this to face. Hacking is another major concern in the South Korean market for crypto, especially considering that the massive hack of Bithumb happened in their own country. The hack stole $20 million from the exchange this year, and another $30 million in crypto last year.
With all of the scandals to hit South Korea recently, the Coinnest crypto exchange decided to shut down their own business within South Korea. Everything from mismanagement of funds to taking bribes to even accidentally airdropping crypto to customers has plagued the exchange.
However, if the regulators in South Korea establish some stricter policies, it is possible that Bitcoin will become more popular for retail investors.