Individual investors in Asia are pushing the growth of cryptocurrencies by adding fiat liquidity.
Millions of individual investors in Asia are keeping cryptocurrencies afloat in 2017, and may continue to build the momentum in 2018. Six countries control 55 percent of all the online Bitcoin trade across the world, and the majority of them are coming from Asia.
India alone has an estimated 333 million cryptocurrency users, making the country the second largest in virtual currency trade volume after overtaking China which has issued a stringent a cryptocurrency regulation in September, reported TradeRoom.
However, the attention has been shifting towards Japan and South Korea. Japan dominated Bitcoin trading, with a boost from Korea. In 2017, Koreans have deposited 64 times more fiat into exchanges, show recently released statistics.
Chris Weston, chief market strategist at online trade platform IG Group told The Wall Street Journal:
“Bitcoin is one of the few markets we’ve ever had in history where you’ve seen these astronomical gains around the world and the retail investors in Asia are the ones driving it. It feels like this whole thing is being driven by the average Joe, who isn’t nearly as financially literate as a professional fund manager.”
Rise in Individual Wealth Drives Cryptocurrencies Up
The rising individual wealth in Asia, particularly in China and South Korea is also driving the performance of cryptocurrencies. These individual investors are looking for alternative investment platforms that provide higher returns that are not usually found in traditional vehicles, such as stocks, bonds, and real estate.
Asian trading of Bitcoin balances the heightened interest of dollar-based investors.
More importantly, the millennial generation is easily attracted to the digital currency space having been brought up with the onslaught of newer technologies, internet, and smartphones.
Asian Central Banks Issue Rules
With the exponential growth of the cryptocurrency space, it is not surprising that central banks and other regulators in the region have issued varying degrees of warnings and regulations.
The swelling appeal of the cryptocurrencies amongst Asians has worried regulators in the region that from Southeast, Central, and East Asia, central banks there have issued warnings and notices to the general public, urging them to exercise caution before jumping into the cryptocurrency craze.