“Bitcoin Zombies” overtake the world financial markets

Cryptocurrencies are going through a revolutionary boom and their impact is felt across the world financial markets. Bitcoin is leading and dominating the trades as the main reference exchange cryptocoin. While Japan has the largest share of the market, there is another country that leads by far through cryptocurrency investors per population invested in this – South Korea has 3 out of 10 employes with regular income invested in the market.

Unstable conditions in which either economics are changing or the new imposed regulation are affecting the markets determined trends to reverse, volume to rocket or stagnate, all showing the volatility of cryptocurrencies market. Just days ago Indian government declared Bicoin as a people enemy comparing it with a PONZI scheme, and declaring that the want to protect the people that they would forbid the activities of the exchanges in the near future. In other country – South Korea – officials declared they want to impose limits to the tradings that are done with cryptocurrencies aiming not to have so unexpected turn ups. With all these impediments and based on a S.Korean survey (941 people with 80% having ages between 20s-30s being interviewed betting December 19 and 20) concluded that who is involved in cryptocurrency about 80% had positive returns from it, while 20% made an average return of ~400% their initial investment. The common portfolio was ~5,000$ leaving some noteworthy returns in the end. Another fact is that the trading in South Korea became the 3rd market in the world per volume with more than 2 million investors involved reaching up 1/25 citizens with ownership of cryptocurrencies. And if that is not enough it also has Bithumb, the larges cryptocurrency in the world amongst others which dominate the market share.

And when we have such many investors in a limited space, all of them being under the cryptocurrency fever, they were soon named “Bitcoin Zombies” - considering that they would refresh the price of the cryptocurrency from hour to hour to see where they are standing and what they should invest more in. Seeing how all of this affected the society, the prime minster Lee Nak-yeon declared: “Young people and students are rushing into virtual currency trading to earn huge profits in just a short period of time … it is time for the government to take action as it could lead to serious pathological phenomena if left unchecked".

The concern expressed is for the society to turn its ways towards illicit activities, violence to increase and chaos to take over without government involvement and restraints. Still, as the negative aspects are yet to be seen the “Bitcoin Zombies” continue free as the fight would have won for now.

As to give some real life experiences, some students from the Sungkyunkwan University in Seoul gathered not for studying together for their coursed, but rather to exchange ideas and tips of investments in the cryptocurrency market. They all started acting as one entity, exchanging information all for the one scope alone to get more involved in cryptocurrencies. The only disruption was when someone from the group who was also watching over the market trends of his portfolio, broke the atmosphere shouting “there was just a big jump!”

And this is only the beginning... Eoh Kyong-hoon admitted that “I no longer want to become a math teacher” and he founded later on the Cryptofactor club "I’ve studied this industry for more than 10 hours a day over months, and I became pretty sure that this is my future." That looks like a plan, but what happens when the markets turn against all these investors...

Although the risks are the horizon and that the reversed trend of the market are examples of how things go wrong, due to the great unemployment rate 3X national average, determines the younger's to adhere to cryptocurrencies regardless of all this factor and to the alarms given by the officials. These social aspects led to the officials to take action and they're announcing specific measures and regulations regarding the cryptocurrency market and trading within its territory. Another matter impacting the investors was the hacking of South Korean Korean cryptocurrency exchanges which ended up in their closure and filling for bankruptcy

With all these concerns and factor, the path did not changed for the young Eoh that was not yet affected by the multitude of new regulations and while he already got 20X from his initial investment he can foresee either a continuance or diminishing of the gains in the future, but they still remain at high levels that keeps his motivation. He observed that many students were having laptops to the classes and while they might have been (or not) attentive to the lesson, for sure they would keep an eye on the movement of their investments and even to some trading and getting some action while there “Even when professors are giving lectures right in front of them”...

Considering that the so called investors are not some big players with consolidated balance and as the Bitcoin price rockets to the sky, it makes difficult for them to follow it anymore. Thus, they change their focus to alternative altcoins which are more acceptable and give great returns in short times – Ripple grow from 0.3$ to 2$ in about 2 months giving 600% investment return, IOTA was trading around $0.82 in November and today in December is about $3.89 giving 400$ positive returns and other similar examples.

“Since young people are more mobile-friendly, they can actually make more out of altcoin investments as long as they are able to discriminate gems from pebbles,” said Kim Jin-hwa, leader within the Korea Blockchain Industry Association, which compounds no less than 14 online cryptocurrency exchanges.

The daily/nightly routine has been changed within the young people as the market start to move more volume and there are trading opportunities at the horizon. They wake up or not sleep at all starting with 2 AM when the markets get active. Getting into this moment, the ZOMBIES organize themselves in investment guilds, they strategize together and plan future actions to strengthen their positions and future earnings. As part of the club they are chatting with each other, calling and discussion investment decisions, share opportune movements in the market and all have in mind the get rich fast.

Another example is given by Lee -Ji-woo, sports industry major having just 22 years who said that “I literally knew nothing about cryptocurrencies or the economy... Everyone here has taught me a lot... I can have two jobs maybe, one as an athlete and another as an investor.” Taking this thought one step further, Shin Dong-hwa, head of the Korea Blockchain Exchange, said that “Whenever they go onto social network services, they are easily exposed to so many examples of young people around their age earning huge money.” So all of this is like a social movement and not only just some making by the powerful companies, but by each one involved. But when there is high reward, there is also high risk.

Kim Yong-beom, vice chairman of the Financial Services Commission, expressed that in the beginning of the week the prices are moving up as each speculator waits for the next buyer to get in and thus pay more. “That really is a Ponzi scheme,” he concluded. Yun Chang-hyun, economics professor at the University of Seoul, observed this behavior and expressed his opinion in this regard that “There’s no way to measure their true value yet but students are just going for them, believing that they can earn a big fortune in just a snap.”

So far the millennials are still correct even the odds against stem. Of course there aren't the banks behind all this growth to sustain a crash of the market, but we need to move on from the traditional thinking and explore something that is new for everyone. If we are afraid, will not be able to make great things, we need some sort of craziness to make a big step for the humanity and for setting a new strength in the world.

From the craving to participate in the cryptocurrency movement, new things are evolving and a new bread of financial investors are born. Nonetheless, the model goes over any country constraint and grows universally. Kim Myung-jae, an arts student of only 19-year-old, emphasized that “I realized that I was actually speculating rather than investing before I came to this club... Now that I fully discuss which one to invest in with the members, I‘m actually looking at the true value." So, it is clear that traditional investors are slowly disappearing and a new energetic, young, invincible type of investor is gaining market share. And while what we don't know we tend to avoid or restrain from, the new generation comes and sees the true values offered by the cryptocurrencies and there's no way back from it. While that is certain, the only question that remains is...when?...

Sources:
https://www.zerohedge.com/news/2017-12-29/stunning-look-inside-world-south-koreas-bitcoin-zombies
https://seekingalpha.com/instablog/44592406-sleepless-in-the-alps/4912497-zirp-zombies-attack-photo-essay