Investing in a cryptocurrency like Bitcoin is a tempting option for young people today, including in South Korea. But it is also part of the cause of the rising debt between them.
The South Korean Financial Supervisory Service (FSS) revealed debt data for a generation born in the 1980s, which stands for millennials and Gen Z.
It has been noted that in 2019, the younger generation will account for 33.7% of all household debt in Korea. However, this percentage will increase to 45.5% in 2020 and 50% in 2021. This means that these young people are borrowing more money.
Not only that, the debt of the younger generation to banks has increased very high from USD 3.8 billion in March 2020 to USD 22.6 billion in March 2021. Han Jeong as a politician from the Democratic Party of Korea noted that high debt is related to cryptocurrency investments.
"They borrow large sums of money to buy real estate. This younger generation is also burying themselves by investing in stocks and buying cryptocurrency," he said in a statement.
He also asked for efforts to be made so that these young people are not stuck in debt and unable to pay it off. One of the reasons why young Koreans are eyeing stocks and Bitcoin or other cryptocurrencies is getting rich quick.
"In Korea, young people in their 20s have only two ways to get rich, which is to win the lottery or sell stocks. We know that we will never get rich with just a salary, not enough to buy a house," said a young man in very much.
Stocks as well as cryptocurrencies can indeed provide lucrative returns. However, Bitcoin and its partners are also at high risk because its price can go up and down very quickly.
Tags
CYBER LIFE
