- A quarter of Aussies see crypto as a good alternative to the property market
- Rising property prices could be a driving factor for the sentiment
- Younger Australians are at the root of the trend
Four million Australians say they are likely to invest in cryptocurrency in the next year while one in four Australians say they see digital currency as a “good alternative” to having an investment property.
This is according to a national survey that received 1,027 respondents and was conducted by YouGov, a global researcher. The research was commissioned by the cryptocurrency Kraken.
The data found 21% of Australians are ready to purchase some form of cryptocurrency. Among millennials, the percentage was higher at 34%, while 32% of Gen Z were interested.
Crypto more accessible than property?
“Property has been a cultural norm and high on the wishlist for most investors, but as [housing] affordability continues to be an issue, we’re seeing more young people looking for other options to grow wealth.”
Jonathon Miller, Kraken Australia managing director
While a quarter of respondents saw digital currency investment as a viable alternative to property investment, the view is held much more strongly among millennials (39%) and Gen Z (31%).
Only 24% of Gen X and only 13% of Baby Boomers agree with the sentiment.
As reported in other media, Mr Miller said, “It’s these younger Australians who are changing the dynamic and with more education we expect the broader market to come around to the idea of investing in cryptocurrency.”
However, we may not need to choose between digital currency and property investment in the future as digital properties join the market.
Bitcoin – the leading cryptocurrency – shot up to US$63,000 in April, but has since fallen back to settle around US$35,000. Great news if you bought in last year when it was around US$10,000, but not so great if you got in on the steep climb that preceded its recent peak.
A previous bubble in Bitcoin occurred in late 2017, when it shot up to US$18,000 from previous price positions of US$2,000. It has been hovering around US$10,000 until its recent climb.
Bitcoin Price, US$, since 2014
Allied to this year’s price rises has been the related interest and price rises in non-fungible tokens (NFTs).
Speculation or investment? You be the judge.