"Why Do We Trade Coins?" The 2030s Crying and Laughing in Front of Coins

'Investment or Speculation?' Coins Attracting 2030s
Unstable Job Security... Sighs Over Homeownership Even After Crossing Employment Hurdles

On the morning of May 17, when many cryptocurrencies including Bitcoin showed a bearish trend, the cryptocurrency prices were displayed on the electronic board at Bithumb Gangnam Center in Gangnam-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Han Seung-gon] "I get mocked as a 'lightning poor' person, but I'm desperate, so I see it as hope."

Recently, as cryptocurrency prices have plummeted, criticism against the 2030 generation, which has many coin investors, has grown louder. Some even call them the so-called 'foolish generation' who do not work hard but only seek quick riches. However, young people argue that there are reasons why they have no choice but to flock to coins, such as unstable job security and the reality that they cannot save enough salary to buy a house.

According to the coin exchange Bithumb on the 27th, as of 7:31 a.m., the price of 1 BTC (Bitcoin unit) is trading in the 47 million KRW range. Ethereum is trading at 3.13% higher at 3,459,000 KRW per 1 ETH (Ethereum unit).

Bitcoin, which plunged 30% just last week, seems to have rebounded to 47 million KRW, but compared to last month's peak price of 81.69 million KRW, it is about half. Considering the potential risks of cryptocurrency regulations from China and the United States, for young investors in their 20s and 30s, it inevitably becomes a high-risk investment.

Nevertheless, young people unanimously say they have no choice but to invest in coins. Kim, a man in his 30s who said he started investing in coins for the first time this January, said, "I consistently use 30-40% of my salary for coin investment," emphasizing, "The risk is considerable, but considering current inflation and other factors, the profit from coin investment is at least somewhat acceptable." He added, "My ultimate goal is to save a lump sum, take out some loans, and buy my own house."

Park, a company employee in his 20s, has a similar goal to Kim. He emphasized, "People mock or point fingers at coin investment as if it were gambling, but among young people, it can be considered a minimum investment." He continued, "I wish the 40s and 50s generation would recall their 20s. Who was buying stocks and even overseas stocks? It's something done out of desperation."

On the afternoon of the 27th of last month, real-time prices of Bitcoin and others were displayed on the price board at Bithumb Gangnam Center in Seoul. [Image source=Yonhap News]

Summarizing the words of young people, their complex feelings about cryptocurrency include anxiety about losing their future and investment money on a single coin. Their investment scale is considerable as of the first quarter of this year.

According to the office of Kwon Eun-hee, a member of the National Assembly's Political Affairs Committee from the People’s Party, which obtained investor status data from the Financial Services Commission through major four exchanges?Bithumb, Upbit, Korbit, and Coinone?the total number of new subscribers in the first quarter of this year was 2,495,289. Here, new subscribers refer to users who newly linked real-name accounts during this period. Although the absolute amount of deposits from investors aged 19 (under 20) who just became adults is small, their growth rate in the first quarter surpassed all other age groups.

By age group, the '2030' generation had the largest share. People in their 20s accounted for 32.7% (816,039 people), the highest, followed by those in their 30s at 30.8% (768,775 people). The 2030 generation accounts for more than half of the total.

However, as cryptocurrency investment shows signs of overheating, there is also a view that coin investment is nothing more than gambling. It is pointed out as a kind of high-risk speculation rather than a positive phenomenon where future technology is attracting attention. A man in his 30s said, "Aren't people just staring at the exchange on their smartphones all day?" and criticized, "How can that be called investment? It's just speculation."

Meanwhile, amid the mixed fortunes of 2030's coin investment, the government has repeatedly emphasized that price fluctuations of cryptocurrencies like Bitcoin are not subject to protection.

On the morning of the 26th, Eun Sung-soo, chairman of the Financial Services Commission, met with reporters after the 'Korea Fintech Week 2021' event held at Conrad in Yeouido, Seoul, and said, "We have clearly stated that cryptocurrency price fluctuations are not something we can protect." He added, "However, regarding whether the money entrusted by customers is protected, the amended Special Financial Transactions Information Act has been in effect since March." He emphasized, "Cryptocurrency exchanges registered under the Special Financial Transactions Information Act naturally protect investment funds."

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