Towards the end of 2020 and the start of 2021, Bitcoin and many other forms of cryptocurrency dramatically skyrocketed and investors were keeping a very keen eye on the market. South Korea was one of the most well-performing markets in all of the cryptocurrency world which led people to begin wondering why it was so popular there as opposed to other places around the world. In March of 2020, the South Korean National Assembly finally legalized cryptocurrencies and crypto exchanges under the new legislation.
Cryptocurrencies have been shown to be a very popular form of investment all across South Korea and continue to rise in popularity, it is mainly the young generation that is to thank for its popularity. It is said that the youth of South Korea see cryptocurrencies as the future of investing and as a path to prosperity. South Korea is known for its ability to adjust and adapt to any new technology or form of being, so given the chance, South Korea jumped on the cryptocurrency bandwagon.
South Korea seemed to readily adopt cryptocurrencies as a normal part of their society quite quickly and it seemed to take off almost immediately.
Why is it so popular in South Korea?
There have been reports, articles, and a plethora of research done to figure out what the reason for its popularity actually is, however, one could not be pinpointed. Instead, several potential reasons were thought out about cryptocurrency in South Korea. After many theories were put out into the world, there were a lot of responses that either rules them out or backed them. Luckily, a final answer was found.
All of these theories combined can basically come down to three key reasons as to the popularity of cryptocurrencies there. Let’s take a look at the three key reasons for the popularity of cryptocurrencies in South Korea.
- Economic conditions- One of the main reasons for cryptocurrencies success in South Korea can mainly be attributed to prevailing economic conditions there. One thing that South Korea suffers greatly with is the youth unemployment rates which is severely affecting the economy, however, cryptocurrencies have essentially ‘saved the youth of South Korea’ according to some sources.
- Micropayment transactions- Another great reason is South Korea’s familiarity with micropayment transactions. South Koreans have always been well-known for how well they adopt new types of technology and how willing they are to try new things. Along the way, they have even adopted some apps as well as some affiliate programs such as algo-affiliates.org which has further pushed the popularity of cryptocurrencies over there.
- Political uncertainty- Due to the amount of political uncertainty in South Korea, it is another reason cryptocurrency is so popular. This is because South Korea’s neighbour, North Korea, has been categorized as a ‘state of concern’. It is mainly attributed to the fact that Bitcoin is not attached to any particular state that South Koreans like it because investors are wary of North Korea’s intentions.