[The Return of Bitcoin] Sleepless Investment Fever... "Even Soldiers Busy Checking Prices on Phones"

Over 5-Fold Increase in One Year... KOSPI's Returns Far Surpass Nasdaq
Investment Fever Among 2030 Generation 'Heats Up'... "Institutional Measures Insufficient, Investment Caution Needed"

[Asia Economy Reporters Minwoo Lee and Byungseon Gong] #Office worker Kim Younghoon (36, pseudonym) recently helped his mother open an account at the domestic cryptocurrency exchange Bithumb. Kim said, "I heard from friends around me that they put in 5 million won and quickly doubled it to 10 million won, so my mother asked me to hurry and set one up for her as well." He added, "She has never invested in stocks or cryptocurrencies before, but I made the account so she could invest a small amount just for fun and to join conversations with friends."

The topic is also popular among public officials and soldiers. Public official Lee Sangjae (25, pseudonym) said, "From early 20s beginners to 50s senior secretaries, everyone talks about Bitcoin," adding, "I think they pay more attention to cryptocurrencies with high volatility because of low salaries." Soldier Shin Moonhyun (23, pseudonym), currently serving in the military, also said, "More soldiers have been boasting about making money with Bitcoin recently," and "During breaks, they are busy checking cryptocurrency prices on their smartphones."

Investor interest in the leading cryptocurrency Bitcoin is as hot as during the 2018 'coin craze.' Amid a low-interest-rate environment, people of all ages, occupations, and genders are rushing into Bitcoin, seeking higher returns despite its volatility. The number of new users at Bithumb, South Korea's largest cryptocurrency exchange, increased by 53% in November, 63% in December, and surged 760% last month compared to the same months the previous year. The number of users in 2019 was 318,003, which rose 23% to 391,004 last year. Notably, the share of users in their 20s and 30s is growing, increasing from 53.7% in 2019 to 61.3% last year and 62.0% in January this year.

With a surge in stock investment due to low interest rates, many are diving into the cryptocurrency market seeking greater volatility and returns. According to Bithumb, as of 10:11 AM on the 22nd, the price of Bitcoin was 64.66 million won. Compared to 11.49 million won on February 22 last year, it has skyrocketed more than fivefold in one year. Compared to the KOSPI's approximately 41% rise and the U.S. Nasdaq's 41.3% increase over the past year as of the 19th, Bitcoin's growth is overwhelming. On the 20th, it even hit an all-time high of 65.98 million won.

Investors explain that although it is high-risk and high-return, they have no choice but to pursue big profits amid the low-interest-rate environment. Office worker Choi Sungjun (38, pseudonym) said, "The cryptocurrency market is close to gambling, but it offers much higher returns than savings or stocks," adding, "I sold all my U.S. stock investments and put the money into cryptocurrencies."

The problem is that the high volatility and 24-hour operation without opening or closing times make it difficult to respond. For example, when Tesla CEO Elon Musk mentioned Dogecoin on Twitter on the 27th of last month (local time), its price surged 300% in one day but dropped about 40% two days later. University student Park Eunjin (25, pseudonym) lamented, "I reduced my sleep to check cryptocurrencies, but the price halved during the three hours I was asleep." Mr. Yoo (36) said, "Since the 17th, I have drastically reduced my sleep to focus on cryptocurrencies," adding, "It disrupts daily life, but when news leaks from overseas, prices plummet immediately, causing huge losses, so I have no choice."

Experts warn that caution is necessary as institutional measures are still insufficient and volatility remains high. Professor Inho from Korea University’s Department of Computer Science said, "Cryptocurrency investment requires special caution," and pointed out, "Virtual assets issued based on real assets like real estate and gold have the potential to develop into future digital asset industries, so regulatory frameworks need to be established urgently."

This content was produced with the assistance of AI translation services.