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Hongkongers are among the most active investors in crypto - Visa study says. Photo: AFP

Hongkongers are among the world’s biggest investors in cryptocurrencies, Visa study says

  • The study found that 18 per cent of Hongkongers are active investors in cryptocurrency, while 13 per cent are passive owners
  • About two in three active investors were male, with the exception of Hong Kong, ‘where there is little difference in participation among genders’
Bitcoin

About a third of Hong Kong residents have invested in, or used, cryptocurrency as a medium of exchange, the second-highest engagement with the new asset class among developed markets surveyed by credit card company Visa.

Crypto or cryptocurrency is a digital or virtual currency secured by cryptography and is also used to buy products and services, but is not backed by a government authority, which potentially makes it a risky asset class.

The study found that 18 per cent of Hongkongers are active investors in cryptocurrency, while 13 per cent are passive owners, just behind numbers for the US, where 27 per cent of those surveyed were active investors and 9 per cent passive owners of cryptocurrency.

The Visa survey interviewed more than 6,000 respondents across eight markets, including three emerging markets – Argentina, Brazil and South Africa. Five developed markets were included in the study.

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For the developed markets surveyed, which also included Australia, Germany and the United Kingdom, active owners of cryptocurrency came in at 19 per cent and passive owners at 9 per cent. In emerging markets, 23 per cent were active owners of cryptocurrency while 14 per cent were passive owners.

Active owners are defined as consumers who have used cryptocurrency to send or receive money, buy goods or to accept payment at least once, while passive owners are those who have bought cryptocurrency as an investment but have neither transferred nor transacted with it.

“Crypto is gaining interest not only as a tradeable asset but also as a potential payment medium, with consumers rethinking the way they invest, spend and bank,” said Maaike Steinebach, general manager of Visa Hong Kong and Macau. “Crypto applications are emerging from the growing awareness.”

According to the survey, about two in three active investors were male, with the exception of Hong Kong, “where there is little difference in participation among genders.” Almost all adults who manage their household finances in Hong Kong are aware of cryptocurrencies, according to the study.

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The most cited reason for investing in cryptocurrencies among Hongkongers was the desire to take part in the ‘financial way of the future’ and to diversify their investment portfolio.

“I tried to invest in equities and the stock market, but cryptocurrency is so much more exciting,” said Alice Lau, a Hongkonger in her 20s employed at a cryptocurrency firm. “People think cryptocurrency is volatile and high-risk, but I monitor the market movement closely and I’m not worried about my investment.”

Many early adopters of bitcoin – considered the original digital currency – who maintained their holdings despite severe bouts of volatility, have been richly rewarded. In one case, a young Norwegian was able to buy a home from an US$850,000 windfall on a US$22 original investment.

Bitcoin is currently worth about HK$392,000 (US$50,264), up 72 per cent from the start of the year, but down about a quarter from a month ago.

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