The recent pull and smash of 1INCH has also allowed everyone to see the pull ability of Koreans. Today I will discuss with you why Koreans are so keen on speculating in currencies.
In South Korea, almost everyone knows that Bitcoin exists.
In 2017, the country of more than 50 million people completed 20% of all global Bitcoin transactions, making it the largest market for Ethereum, a digital currency.
Students in South Korea can't help but check the price of Bitcoin during recess, while office workers conduct transactions while waiting in line to buy coffee. Even the elderly are participating in market transactions at home.
In South Korea, where the price of Bitcoin was once 40% higher than on U.S. exchanges, the frenzy was at its peak and people's enthusiasm for Bitcoin was at its peak. However, this situation came to be known as the “pickle premium.”
But by 2018, the kimchi premium disappeared as the government took steps to crack down on speculation. The government first mandated the use of real-name bank accounts for cryptocurrency transactions and then banned ICOs (initial coin offerings) outright that same year. While the pickle premium may no longer exist, enthusiasm for Bitcoin continues.
In 2022, South Korea ranked third in global Bitcoin transaction volume, accounting for 8.7% of the market share. The United States is the largest trading market, accounting for a full 69.8% share, followed by Japan, with a share of 11.3%.
The reason for this trend is not only the rapid acceptance of new technologies by Koreans, but also the influence of cultural and narrative factors.
Learn about Korean culture
During the Korean War from 1950 to 1953, South Korea suffered severe damage and became one of the poorest countries in the world. However, by 2023, it has become one of the richest countries.
There are several reasons for this rapid economic development. First, an important role was played by the rise of family business groups (chaebols), which played a key role in South Korea's economic development. Secondly, South Korea attaches great importance to the development of exports, which also provides huge impetus for economic growth.
This fast-paced mentality has been deeply integrated into Korean life. Every second counts. Food must arrive quickly, trains must arrive on time, and buildings must be completed in just a few weeks. Whatever you do, do it quickly and efficiently. Of course, getting rich quickly is also their goal.
However, becoming rich has become more difficult. Since 2012, South Korea's economic growth has slowed to about 3% from double-digit growth in the 2000s. Therefore, ways to get rich include investing in stocks or real estate, but this is not suitable for everyone and the market does not always go smoothly.
Lacking high-risk investments, real estate and domestic stocks become less attractive when real estate becomes expensive and interest rates rise. Derivatives trading has strict certification requirements, and the KOSDAQ index of overall technology stocks has barely grown since 2011.
Alternatives have long been a gamble. (hereinafter referred to as du)
ways to get rich quick du
In South Korea, gambling is strictly prohibited, including c-ticking, horse racing, boat races, bicycle races and gambling. Even Koreans traveling abroad cannot participate.
According to data from the Korea Du Problem Center, established by the South Korean government in 2012, South Korea's du addiction rate is two to three times that of other major countries. Although it is not sure how these data are calculated, there is a social theory that Koreans are particularly prone to being addicted to du, which also affects the formulation of relevant laws.
Cryptocurrencies are seen as a way to get rich quick because other investments are restricted. Koreans view cryptocurrency trading as a dud, trying to make a lot of money in a short period of time.
In the West, the dominant view of cryptocurrencies is that of “beyond the banks” or Bitcoin as digital gold. But in South Korea, people have higher trust in the finance and banking industry, so these claims have little impact on them.
The story of cryptocurrency being regarded as digital gold is not attractive enough in South Korea because gold cannot surge in price by 100% in one day. However, cryptocurrencies can. To attract traders and keep them excited, some exchanges become experts in meeting the demand.
For example, newly listed tokens usually attract the attention of retail investors, but in South Korea, delisting is also an opportunity. Delisting requires that deposits be stopped, so speculators will push up the price to obtain final profits before the new tokens can no longer be traded. Delisting notices receive as much attention from speculators as listing notices, if not more.
In some cases, an exchange may go "shutdown," halting deposits and withdrawals but allowing trading to continue. Trading in this situation has been described as a real gangster's feast, like a closed net filled with fish, where traders do not rely on external prices and cannot arbitrate.
To be fair, this type of internal market trading is also popular for stock trading in South Korea, and cryptocurrencies provide new opportunities for using this method.
Some exchanges don’t even offer cryptocurrency deposits and withdrawals from the start, instead focusing on internal market trading.
Another point
Class consolidation in South Korea has become very serious. Young people are under great pressure in life. The vast majority of people are unable to obtain the life they want step by step. Moving up and crossing classes is even more out of reach.
When the road is almost blocked, you need to think of other ways at this time.
The blockchain has been developing for many years, and both its size and consensus are gradually increasing.
They hope to complete the redistribution of wealth in disguised form through blockchain, even if it is limited, or to participate in the transfer of wealth within the circle. #BTC
