In the study, 23 percent of Hong Kong’s citizens will be contemplating for investing in cryptocurrency to survive the Financial trouble, that some respondents believe will come within a year.
The study was conducted by Hong Kong’s Blockchain Association (HKBA), according to the yahoo! Finance. In study, 46 percent of representative believes that economic trouble is about to due over a trade war that may happen between the US and China.
This trade war, per respondents, could have devastating effects in the stock market. To Hong Kong’s investors, cryptocurrencies could help hedge against an economic downturn as they thrive in uncertain times. As per the HKBA, investors are looking for “more investment channels to maintain capital growth,” which contributes to cryptos’ success.
Another factor drawing in investors is the market’s growth over the past few years. According to data bitcoin, the flagship cryptocurrency, was trading at about $1,000 in early 2017 and came close to $20,000 in December of that year. This year its price declined to under $6,000, but has since surged to $7,600.
The HKBA further pointed out younger generations are fonder of cryptocurrencies. This confirms data from a survey conducted by a real estate developer in the UK, that found 21% of UKs millennials prefer investing in bitcoin over real estate, an investment they deem “high risk.”
The survey also founded that the most investors want to see authorities regulate the cryptocurrency ecosystem, presumably in a bid to improve stability. As per the publication, 60% of respondents believe Hong Kong should issue licenses and supervise cryptocurrency trading platforms, just like the US, Japan, and Singapore do.
Hong Kong’s government has revealed it sees blockchain technology as a priority, while looking at initial coin offerings (ICOs) as an “efficient fundraising model.” The abundance of illicit schemes in the market has, however, seen investors look at ICOs as a high risk, high reward investment.