"Go All the Way" vs "Get a Grip": 'Investment or Speculation?' Heated Debate Among 2030 Generation

Unpredictable Price Volatility... Criticism of Speculation, Not Investment
"Experienced Both Crashes and Surges" Growing Experience of 2030s
'Cryptocurrency Investment Risks' Exist... Chinese Government Declares All-Out War on Cryptocurrency
Musk's Words Tip the Scale of Investment Sentiment

On the afternoon of the 24th, the Bitcoin price is displayed on the electronic billboard at the Upbit Lounge in Gangnam-gu, Seoul. On this day, the price of the cryptocurrency Bitcoin fell on domestic exchanges and is trading in the 42 million won range.
[Photo by Yonhap News]

[Asia Economy Reporter Han Seung-gon] "I just decided to go all the way," "I really hope it stops now, it's just speculation."

Cryptocurrencies, which had been plummeting for days, have successfully rebounded. However, some investors have already suffered losses, and especially since many coin investors are in their 20s and 30s, the impact of this coin crash is expected to be significant. As a result, some express the opinion of quitting coin investment, while others, having experienced both sharp declines and surges and endured extreme cryptocurrency price volatility, intend to respond appropriately and continue investing.

As of 2:15 PM Pacific Time (6:15 AM Korea Time on the 25th), Bitcoin recorded $39,274.66, up 15.29% compared to 24 hours earlier. Other cryptocurrencies also rebounded simultaneously. Ethereum traded at $2,665.79, up 26.39%, and Dogecoin at $0.36, up 16.35%.

The problem is the risk of a sharp drop. Although it has rebounded now, since the coin market operates 24/7, it is practically impossible to predict when the next sharp drop will occur and its scale, so investors have no choice but to constantly monitor coin price fluctuations throughout the day.

Kim, a man in his 30s who started investing in coins this January, revealed his ongoing investment plan. Kim said, "The volatility of cryptocurrency prices is very high, and I have to watch the coin market board all day, but I think I have somewhat adapted," adding, "Having experienced both crashes and surges, it has actually been a good experience, and I have no plans to stop investing."

On the other hand, some criticize the extreme volatility of coin prices, saying it is more like speculation than investment. Lee, a man in his 20s, said, "I don't know what will happen to cryptocurrencies later, but at least for now, it can only be seen as speculation, not investment," criticizing the market. He added, "I made some small profits with coins, but this doesn't seem right."

[Image source=Yonhap News]

As coin prices repeatedly plunge and surge, young people in their 20s and 30s appear to view the cryptocurrency craze positively.

On the 24th, Alba Heaven, a job and part-time job portal, conducted a survey of 1,750 university students, revealing that 52.9% viewed the cryptocurrency craze positively, and 23.6% were actually participating in cryptocurrency investment.

The biggest reason university students viewed the cryptocurrency craze positively was the high rate of return. They see it as an opportunity to earn higher returns compared to traditional investments despite the risks.

Conversely, 47% who held negative perceptions regarded cryptocurrency investment as speculation or gambling rather than investment, and they also felt burdened by the risks associated with price volatility and side effects from overheated investment.

Among university students investing in cryptocurrencies, 68.3% reported side effects from their investments. The most common was intensified emotional fluctuations due to price charts (35.3%), followed by decreased concentration in daily life activities such as studies and part-time jobs (14.1%), inability to maintain regular lifestyle patterns (12.0%), addiction symptoms (10.2%), excessive stress (9.5%), increased spending and impulsive consumption (8.1%), and insomnia (4.9%).

Meanwhile, amid extreme volatility in coin prices, so-called 'cryptocurrency investment risks' continue. The Chinese government has declared an all-out war on cryptocurrencies, and a single statement from Elon Musk, CEO of Tesla, continues to sway investor sentiment.

On the 21st, the Financial Stability and Development Committee of the State Council of China, chaired by Vice Premier Liu He, warned that to protect the financial system, "Bitcoin mining and trading will be targeted." This is seen as a reaffirmation by Chinese financial authorities of their policy to prohibit private cryptocurrency trading.

Additionally, Musk tweeted early on the 23rd expressing support for cryptocurrencies, which briefly pushed Bitcoin prices above $38,000, but the rally did not last long. Especially on the 12th, Musk announced that Tesla would no longer accept Bitcoin as a payment method for vehicle purchases, which put the brakes on the overall cryptocurrency market. Although Musk later clarified that "Tesla has not sold its Bitcoin," it was insufficient to reverse the market trend.

[Image source=Yonhap News]

The unique market of cryptocurrencies, characterized by crashes and surges, is also problematic. In early 2018, Bitcoin approached 30 million KRW (approximately $27,000). By the end of the year, its price had plummeted to the mid-3 million KRW range, effectively collapsing.

Amid this situation, interest in altcoins (all cryptocurrencies except Bitcoin) surged, and some unverified altcoins flooded the market. There are concerns about damage caused by so-called 'pump-and-dump coins,' which attract individual investors and repeatedly exit at high prices.

The situation remains the same today. According to CoinMarketCap, a global cryptocurrency market tracking site, the total number of cryptocurrencies worldwide has reached 10,000 for the first time since tracking began, now totaling 19,000.

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