A recent survey of cryptocurrency investors by South Korean exchange Bithumb revealed that many intend to ‘hodl’ their funds over a long period of time, according to Bitcoinist.
The survey of roughly 2,500 investors showed a huge 42.8% were in for the long ride, with only 27% interested in short-term profits. It also revealed that13.% had bought cryptocurrency purely as investment, while another 10.5% were focusing on marriage and property-related goals.
This research is in keeping with general industry consensus that cryptocurrency holders, particularly Bitcoin, are moving into a protracted ‘hodl’ scenario, with coins currently in a buying market.
“As virtual currency continues to be recognized as an asset in major industrialized countries, the perception of virtual currency investment by domestic investors is gradually maturing,” Bithumb commented, as quoted by various Korean news outlets.
The figures varied according to age, but its clear that older groups were planning on holding their cryptocurrency for the future, with 49.1% of this group over 50 years of age. The figures show that only 30% of millennials were planning to hold their coins for the future.
It also appears that South Koreans are not overly concerned about paying tax on their cryptocurrencies. Some 39.5% would keep their investment even in the event of needing to pay capital gains tax – 11% more compared to last year – while only 13.1% said they would “stop investing” in the face of such obligations. Bithumb users also welcomed the South Korean government’s current moves to regulate the industry, including taxation, as they see regulation as the key to future cryptocurrency adoption in the future.
Bithumb has recently banned trading with 11 countries, including North Korea, considered by some to be a move towards improving its profile in the crypto world by adhering to global financial community norms. The South Korean company appears now to want to form associations with compliant members.
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