Aussies are still keen to take a chance on cryptocurrency, with 3.3 million now owning one of the digital coins and almost half a million sinking at least $5000 into it, new research has revealed.
Research from online financial brokers Savvy found 15 per cent of Aussies had invested up to $5000 in cryptocurrency, 2.5 per cent had thrown in $5000 to $10,000, while 1 per cent went wild with an injection of $10,000 to $20,000.
This could mean over 500,000 Australians have invested at least $5000 to $10,000 in cryptocurrency, according to the research.
Savvy managing director Bill Tsouvalas said the public profile of bitcoin millionaires and other successful crypto investors has added to its allure for Aussies.
“We found 19.7 per cent of respondents said they have already bought into crypto. Just under a third of that cohort said they bought into crypto to make money fast, while 47 per cent of the same group said that they’d buy into crypto for the same reason in the future,” he said.
But the survey also found that 79 per cent of Aussies want to see cryptocurrencies more heavily regulated.
“Cryptocurrency may very well be the currency of the future. It’s time for the wider finance sector to embrace it rather than treat it as a fad, or they’ll be left behind,” Mr Tsouvalas said.
Who owns crypto
Meanwhile, comparison website Finder found 17 per cent of Aussies own cryptocurrency, which is the equivalent of 3.3 million, up from 12 per cent back in January in just six months ago.
Leading the charge are both Gen Z and women – the fastest growing demographics when it comes to crypto investing.
Close to a third of Gen Z now own crypto, a figure that has more than doubled since January. In comparison, the number of Millennials who own cryptocurrency has decreased from 33 per cent to 24 per cent over the same period, according to the Finder survey.
The proportion of women who own cryptocurrency has also jumped from 7 per cent in January to 11 per cent in June, while the proportion of men with cryptocurrency has fallen from 29 per cent to 23 per cent.
Kate Browne, personal finance expert at Finder, said cryptocurrency is starting to even the investment playing field.
“Even though bitcoin’s value dipped in recent months, Finder’s research shows that crypto adoption in Australia is continuing to grow,” she said.
“It’s great that we’re seeing more women and young people choosing to invest in cryptocurrency. Historically, the world of cryptocurrency has been dominated by men. With strong long-term growth predictions, a gender gap in cryptocurrency investing could have implications for wealth distribution.”
Reasons Aussies aren’t investing
Finder data shows that bitcoin remains the most popular cryptocurrency – but only just. Around 9 per cent of Australians own bitcoin, followed by ethereum with 8 per cent of people holding it. Other popular cryptos are dogecoin and bitcoin cash.
Among those who own crypto, close to one in three said they purchased it to diversify their portfolio, while 24 per cent purchased it because they believed it will go up in value.
But some Aussies are still hesitant to take the risk – given regulators have warned that people could lose all their money by investing in crypto.
For 43 per cent, they believe it is too volatile or risky, while on one in three haven’t bought cryptocurrency because they would rather have money in shares or savings, while a quarter of Aussies think it’s overvalued.