A recent survey conducted by South Korean newspaper Segye Ilbo, in collaboration with research firm Embrain, revealed that a significant majority of citizens in South Korea view cryptocurrency as a form of gambling. The survey, which included 1,000 participants nationwide, took place from August 3 to August 8, 2024. According to the findings, approximately 80% of the respondents regarded crypto investments as a type of gambling.
More than half (53.2%) of those who considered crypto investments as gambling expressed concerns about the lack of real-world assets backing most tokens. They argued that this lack of underlying value made cryptocurrency investments similar to gambling. Additionally, around one in five respondents mentioned worries about rug-pulls, a deceptive tactic where developers abandon a project and take investors’ funds. Another 16% cited concerns about price manipulation, emphasizing the volatilities in cryptocurrency markets. Moreover, 5% of the respondents expressed apprehensions about weak regulation by financial authorities, suggesting a lack of trust in the regulatory framework. Interestingly, fewer than 2% of the participants mentioned hacking-related risks as a factor influencing their perception of crypto as gambling.
Despite nearly 6% of the respondents having invested in cryptocurrency, only a small fraction claimed to have a good understanding of blockchain technology. Less than 20% of the investors reported a solid understanding of blockchain, while slightly over half stated they had some understanding of the underlying technology. Surprisingly, more than 3% admitted to investing in crypto without any knowledge of blockchain technology. This lack of understanding highlights the need for improved education and awareness surrounding cryptocurrencies and blockchain.
The survey indicated that a staggering 76% of the respondents believed it was inappropriate for public officials to invest in cryptocurrencies. This sentiment reflects the ongoing Coin Gate scandal, which has undermined public trust in government officials’ integrity when it comes to cryptocurrency investments. The lack of faith in the regulatory and oversight capabilities of financial authorities also contributes to this skepticism.
The South Korean cryptocurrency market has been marred by price manipulation controversies, further fueling citizens’ concerns. The survey results exemplify the lack of trust in the market’s integrity and stability. This lack of confidence in the market is likely a significant factor behind the prevailing perception of crypto as gambling.
The survey also shed light on the gender disparity within the South Korean crypto sector. The data revealed that a majority of male respondents in their 20s and 30s had engaged in crypto trading. On the other hand, female participation seemed to be comparatively lower. This gender gap underscores the need for greater inclusion and diversity in the crypto industry.
When asked about their predictions for the Bitcoin market in 2024, a significant portion of the respondents expected prices to remain stagnant. However, an optimistic 21.3% of the participants forecasted an increase in Bitcoin prices next year.
The survey conducted in South Korea highlights the prevailing perception of cryptocurrency as a form of gambling. The concerns regarding the lack of real-world assets backing most tokens, potential rug-pulls, price manipulation, and inadequate regulation all contribute to this perception. Additionally, the limited understanding of blockchain technology among investors and the lack of trust in public officials’ crypto investments indicate the need for greater education and transparency. Addressing these concerns and promoting a more inclusive and diverse crypto sector will be crucial to fostering confidence and broader adoption of cryptocurrencies in South Korea.
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