A study has shown that as many as 23% of Hong Kong’s citizens will “consider investing” in cryptocurrencies like bitcoin to hedge against a potential financial crisis that some respondents believe will come within a year.
According to Yahoo! Finance the study, conducted by the Hong Kong Blockchain Association (HKBA), found that 46% of respondents believe an economic crisis 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 on the stock market. To Hong Kong’s investors, cryptocurrencies could help hedge against an economic downturn as they thrive in uncertain times. 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 CryptoCompare 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 study, conducted by Get Living, read:
For Millennials the soaring performance of Bitcoin – followed by an almost equally profound correction – holds more intrigue than the prospect of steady growth in house prices.
The survey also found that most investors want to see authorities regulate the cryptocurrency ecosystem, presumably in a bid to improve stability. 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.
As CryptoGlobe covered, Hong Kong recently saw an asset management firm serving private Asian family businesses launch cryptocurrency custodial services, in an attempt to meet institutional investor demand. A potentially good move, as according to billionaire investor Mike Novogratz, a “herd of institutional investors” is starting to move into crypto.
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.
More information: www.cryptoglobe.com