Cryptocurrency, the digital alternative to traditional currency, has become a global phenomenon these days. Even though it seemed unfamiliar and scary in the initial days, the term cryptocurrency has been rapidly gaining public attention these days. The recent upsurges in the value of Bitcoin have established Cryptocurrency as a viable investment. Whether the rate goes up or down, the cryptocurrency trend can no longer be stopped. Alongside the business people, South Korea is investing more bucks in Cryptocurrency. In fact, we can say that South Korea could be the first Cryptocurrency powered Nation.
Yes, what you read is true. Here we have briefed a few reasons to let you know why we South Korea is becoming a hotbed for cryptocurrency trading. Have a look through.
The capital city of South Korea, Seoul houses the major portion of the South Korean’s population. More than 90 percent of the South Koreans have high speed internet connection and 71 percent have a smartphone which enables them to hyper-connected to the world via social media. The rise of cryptocurrency popularity with the increased price of Ether from one Dollar to 40 Dollars just in a span of 4 months had influenced many people of the country to invest in next Bitcoin.
From salaried professionals to retired people and students, everyone saw it as the opportunity to make more profits when they came to know that the prices peaked at nearly 40 percent higher foreign exchanges. This resulted in the cryptocurrency infrastructure in Korea to manage the whole cryptocurrency transactions. According to the reports, more than 30 percent of working South Koreans own cryptocurrencies. And awareness of cryptocurrencies is practically pervasive and it is common to overhear people talking about their cryptocurrency investments at bars and cafes. This might justify our argument of ‘First Cryptocurrency Powered Nation Can be Korea.’
South Koreans love towards gambling has attracted them to the adoption of Cryptocurrency. Trading digital currencies and goods wasn’t a radical departure from their spending habits. They are more comfortable with purchasing digital goods long before Cryptocurrency came along. Despite its modest population and economy, South Korea achieved the 12th position in the world wide GDP ranks and spends more than $3 billion dollars on digital goods every year. The people of South Korea tend to spend most of their time gambling over various card games. Later, the government banned it. Most South Koreans viewed Cryptocurrency as a virtual casino that the government hadn’t outlawed and invested most of their hard earned money in it.
According to the reports, Cryptocurrency ownership in South Korea is more than 33 percent of the adult population. This adoption has made the country to place itself as the third biggest Cryptocurrency powered Nation market in the world. South Korea comprises more than 50 Blockchain startups, five publications that are totally dedicated to the Blockchain, 1200 plus social media groups to interact with people on Blockchain technology and around 60 Blockchain events monthly.
The ruling party of South Korea led by Moon Jae-in have more youth followers. On the other hand, more than 33 percent of South Koreas adult population is invested heavily in cryptocurrencies and they don’t want to miss the foreign currency exchange investment opportunities. If the government banned the ICOs, then the youngsters might shift to the opposition parties which would result in the fall of the government. So, the government won’t afford to ban the ICOs instead support it. As the major portion of the cryptocurrency investors are from South Korea, any decision of the government of South Korea will impact more on the cryptocurrency market.
This is the reason why there is a surge in cryptocurrency market value when South Korea’s government opined to ban on ICOs (Initial Coin Offerings). But, unlike the China which banned ICOs and ordered digital currency exchanges to shut down trading platforms by characterizing them as an unauthorized form of fund raising, South Korea informed lawmakers to impose value added tax, capital gains tax or both on traders who invest in foreign ICOs and digital currency exchanges.
Others reasons to say why First Cryptocurrency Powered Nation Can be Korea
China has notoriously prohibited its citizens from exporting more than $15,400 worth of cash. This is the reason why most Chinese citizens are looking for ways to invest in Korean businesses and thereby get the money out from China. A portion of the moved money is investing in Korea crypto-ecosystem. With the new sanctions on North Korea by Trump Administration, there are many rumors that North Koreans are being funneled through new innovative crypto channels that are difficult for Americans to track with the traditional means. Be it a cyber-theft or money laundering, the solutions need to pay to many dividends in other sectors down the road. This, in turn, lets the companies of South Korea test and redefine these systems and drive advanced understanding of cryptocurrencies.
Just we are saying that South Korea has experience on working with Blockchain, academic and technical talent to handle the cryptocurrencies, and South Koreans have awareness of this trending technology. Whatever be the case, we can’t say whether it would have come true in the near future or not. Here we have listed a few key ingredients of a country that runs on cryptocurrencies. If we consider all these factors, we can say first Cryptocurrency powered Nation can be South Korea.