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23% of investors in Hong Kong would consider investing in virtual currencies, in particular bitcoin, so as to protect their interests in case of a financial crisis.
According to a study carried out by the Hong Kong Blockchain Association, at least 46% of the respondents are expecting a financial crisis. They think the crisis will be triggered by trade wars between China and the US.
In their opinion, this trade war might severely impact the stock market. Cryptocurrencies, they feel, might protect them in case the economy goes into recession since they have a reputation for flourishing during difficult times.
More Investment Channels
The HKBA points out that business people are looking for “more investment channels to maintain capital growth” and this in turn contributes to the growth of crypto coins.
Notably also, the report highlights that the millennial generation has a higher level of interest in digital currencies than all other age groups.
This is similar to the data collected by a survey carried out in the UK, which showed that millennials in Britain prefer to invest in bitcoin rather than real estate. They consider the latter to be a “high risk” option.
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For Millennials, Bitcoin’s dizzying performance – followed by an almost as profound correction – is more intriguing than the prospect of a steady rise in houses prices,” said the UK survey in part.
Recently, Hong Kong saw the launch of an asset management firm developed to support family-owned businesses in Asia so as to launch crypto custody services. With this it would be possible to meet the demands of institutional investors.
The Hong Kong government has revealed that it considers blockchain technology a high priority matter. At the same time, it has termed Initial Coin Offerings (ICOs) as “efficient models of fundraising”.