Retail Investors in South Korea Prefer Bitcoin
December 15, 2017
The largest South Korean cryptocurrency exchange Bithumb has increased its monthly amount of transactions by more than 182 times 2017. At the beginning of the year, the amount of monthly trading was $276 million, by early December it has increased to almost $52 billion. Such a stunning increase of investments in digital currencies is probably caused by the outflow of retail investors from the stock market.
The monthly volume of the Bithumb cryptocurrency exchange transactions is growing every month, while on KOSDAQ this indicator is dropping off: in April - $64 billion, by the end of summer - $54.5 billion.
The turning point is related to August 19. Then the daily volume of Bithumb cryptocurrency transactions was $2.4 billion, what was outperforming the adjusted trading volume on KOSDAQ -$ 2.2 billion.
A number of leading Korean economists agree that retail Korean investors choose digital currencies as short-term investments, and the development of this trend depends only on the actions of the state.