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While cryptocurrency is gaining popularity among Australians, the majority are still in it for the novelty
While more Australians are trading cryptocurrencies, the majority still view it as a 'very dangerous' investment, which is why they dabble.
Despite stories of early adopters amassing riches through cryptocurrency trading, the majority of Australians who invest in the digital currency do so for the sake of entertainment.
According to a survey conducted late last year by consumer group Choosi, about one in ten Australians are currently dabbling in bitcoin.
However, the majority stated that they did it for "joy and excitement."
Boredom from Covid may possibly have had a role, as 60% of Australians who trade cryptocurrency did so within the last year.
It is also significantly more popular among younger generations than it is among older generations, and males are three times as likely as females to be previously invested.
According to the report, 19% of Gen Y are involved, compared to 6% of Gen X and 4% of Baby Boomers.
In general, 60% of Australians believe cryptocurrency is a "highly dangerous" investment, while 51% believe there is a lack of transparency and regulatory responsibility.
Others are more concerned with the prospective benefits, with 46% saying their investments offer long-term growth chances and 32% citing short-term profits.
Additionally, privacy of transactions (21%) and faith in crypto over traditional financial assets (16%) were prominent reasons.
Meanwhile, those of us who are still unfamiliar with cryptocurrencies are not alone — even among those who have invested money in it.
Approximately 38% of cryptocurrency investors claimed to having little or no understanding of how it all works.
"It is troubling that many investors do not completely understand the investments they are making and lack the risk tolerance necessary to invest in such turbulent markets," said Whitely Bradford, a financial literacy specialist at Griffith University.
"Cryptocurrency is a highly speculative asset class, and investors should perform their own research and seek professional advice before investing."
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By Crypto PiratesWhile more Australians are trading cryptocurrencies, the majority still view it as a 'very dangerous' investment, which is why they dabble.
Despite stories of early adopters amassing riches through cryptocurrency trading, the majority of Australians who invest in the digital currency do so for the sake of entertainment.
According to a survey conducted late last year by consumer group Choosi, about one in ten Australians are currently dabbling in bitcoin.
However, the majority stated that they did it for "joy and excitement."
Boredom from Covid may possibly have had a role, as 60% of Australians who trade cryptocurrency did so within the last year.
It is also significantly more popular among younger generations than it is among older generations, and males are three times as likely as females to be previously invested.
According to the report, 19% of Gen Y are involved, compared to 6% of Gen X and 4% of Baby Boomers.
In general, 60% of Australians believe cryptocurrency is a "highly dangerous" investment, while 51% believe there is a lack of transparency and regulatory responsibility.
Others are more concerned with the prospective benefits, with 46% saying their investments offer long-term growth chances and 32% citing short-term profits.
Additionally, privacy of transactions (21%) and faith in crypto over traditional financial assets (16%) were prominent reasons.
Meanwhile, those of us who are still unfamiliar with cryptocurrencies are not alone — even among those who have invested money in it.
Approximately 38% of cryptocurrency investors claimed to having little or no understanding of how it all works.
"It is troubling that many investors do not completely understand the investments they are making and lack the risk tolerance necessary to invest in such turbulent markets," said Whitely Bradford, a financial literacy specialist at Griffith University.
"Cryptocurrency is a highly speculative asset class, and investors should perform their own research and seek professional advice before investing."
Support us!