The Younger Generation Suffers from “Bitcoin blues” in South Korea
There is a new kind of cryptocurrency-related depression with symptoms of the “bitcoin blues” spreads in South Korea. Patients may have headaches, insomnia, a loss of appetite and other symptoms.
Cryptocurrency gets popular in South Korea quicker than anywhere else. The so-called 2030 generation (Koreans in their 20s and 30s) are willing to participant in this new high-risk but high-reward investment model. This is because in South Korea, hard work does not always lead to corresponding financial reward. In the extremely competitive environment, it’s still difficult for young people to pay off debt for a house.
South Korea is one of the most educated countries in the world, 70% of 25-34 aged Koreans have a post-secondary degree. However, according to Fendos, the underemployment rate reaches 38% among yang Koreans. In this condition, cryptocurrencies investments becomes the only way out.
Bitcoin fever causes certain social issues. Garrick Hileman, a researcher from the University of Cambridge concluded that, Korean’s social framework has been disrupted by cryptocurrency investment.
“A lot of Koreans are apparently losing motivation to go to work. They are watching their peers make 10 times what they are making in their day jobs just by speculating on cryptocurrencies,” he said.
Dr. Noh Gyu-shik, a well-known Korean adolescent psychologist also pointed out that,
“People are seeing relatively small sums of money rising 10 to 20 folds to the millions and they can’t just ignore it because the rewards are so large. It is also hard to not compare themselves to others. The feelings of missed out on their big chance may always exist.”
Korean government also noticed the “side-effect” brings by cryptocurrencies and has recently laid out new regulation rules to bring stability to the markets with a real-name policy and measures to crack down on related money laundering activities. The Prime Mister Lee Nak-yon emphasized that:
“Yong Koreans, including students, are jumping in to make quick money while virtual currencies are used for illegal activities includes drug dealing or multi-level marketing for frauds. This can lead to serious distortion or pathological social phenomena if left unaddressed.”
The regulatory measures have dropped bitcoin prices. The feeling of loss or inferiority may occur which leads to depression. There are several suicides believed to be linked to cryptocurrency trading losses in South Korea.
According to analysts, the government leads by President Moon Jae-in is basically rely on the support from the younger generation, they are also the mainstream in the cryptocurrency trading activities. Thus, it’s less likely that the Korean government would ban bitcoin and other cryptocurrencies.