23% of HK Citizen Willing to Invest in Cryptocurrency During An Economic Downturn
According to a survey launched by Hong Kong Blockchain Association (HKBA), nearly half of the participants believe that Hong Kong economy, even the world economy will deteriorate in the following year. Approximately 23% of the participants said they are considering to invest in ‘virtual currency’ as an investment hedging tool to cope with economic downturns.
The HKBA indicated that this survey reflects the Hong Kong citizen’s desire to seek more diversified investment channels to keep their funds growing. Due to the effect of the trade war between China and the United States, 46% of Hong Kong citizens believe that the economy recession will take place in the near future.
The fear of economic downturns and the potential side effect on the stock market which will lead to significant losses. Under this circumstances, the HKBA pointed out that virtual currency may become another investment tool for the investors to get good profit.
Cryptocurrency market capital grows rapidly in recent years. The HKBA that can be one of the main reasons for the general public to consider invest in cryptocurrencies. The result of the survey also indicated that the younger generation have higher acceptance of virtual currency.
According to Yahoo Finance, HKBA’s survey also pointed out that up to 60% of respondents call for licenses and more clear regulation on cryptocurrency trading platforms. They suggested that Hong Kong should follow the example of the United States, Japan and Singapore to build a systematic fundamental regulatory structure for cryptocurrency regulation.
Hong Kong government considers the blockchain technology is a very high priority and the initial coin offering (ICO) is also a efficient model in fund raising. However, ICOs or cryptocurrency trading are always involved in cyber crime such as terrorism financing or money laundering activities. It has also been considered as a high risk and high returns investment while many investors are not prepared for a significant loss. The financial authorities emphasis that blockchain technology and ICO will not be intervened as long as they are operate under laws and regulations.