Australian investors are turning to cryptocurrency for long-term investing lieu of housing. mage – Canva
  • Aussies skeptical of long-term housing gains, amid belief nation is in midst of housing bubble
  • Instead turning to cryptocurrency, with millennials showing most confidence in the digital asset class
  • Research finds most are investors in for the long haul, encouraged by Dacxi CEO to diversify portfolio

New research by YouGov on behalf of Dacxi indicates Australians are turning to cryptocurrency investments amid fears of a housing bubble.

The research indicates that four in ten Aussies agree we are currently in the midst of a housing bubble, with this figure rising to 55% of those who have, or have had money invested in crypto.

Millennials & crypto-holders most optimistic

These fears of a looming bubble burst are driving doubt that real estate investment will carry long-term returns, particularly among millennials.

As a result, Aussies are increasingly turning to alternative investment options, with cryptocurrency soaring in popularity.

30% of Australians believe that over the next decade, cryptocurrency will generate more value than housing.

The generational divide in attitudes however, is stark when this figure is divided into age groups. Millennials are most optimistic with 45% agreeing, whereas this declines to 27% of Gen X’ers and 15% of Baby Boomers.

It seems overall, Aussies are putting their money where their faith is. 81% of those with current or previous cryptocurrency investments believe crypto will produce higher value long-term returns than real estate.

Portfolio diversification is key

Ian Lowe, Dacxi CEO, commended investment management company Vanguard for democratising access to traditional assets, but said crypto has been overlooked.

“The next generation is looking for an alternative asset class they can have faith in that will perform well over the long term and that is accessible to younger, less established investors,” said Mr Lowe.

While 17% of research respondents said they are considering crypto investment to assist them in funding a house deposit, 56% said their objective was to build wealth through long-term investment.

Mr Lowe advised that investors taking a long-term approach to cryptocurrency investment should consider diversifying their crypto portfolio.

“Going all-in on a single cryptocurrency such as Bitcoin is a higher risk play, even over the longer term, which is why we have created packages that include multiple different coins.”

Ian Lowe, Dacxi CEO

Dacxi’s Blue Chip bundle allows investors to acquire blue chip crypto currencies including Bitcoin, Ethereum, Litecoin and our Dacxi Coin in a single transaction.

Diversification, or a portfolio approach, has never been easier, and is an ideal entry point for first time and SMSF investors,” continued Mr Lowe.

Investors in crypto for the long haul

29% of Aussies have expressed the belief that crypto is an important aspect of an investment portfolio.

Young Australians are jumping on the bandwagon, with 46% of millennials agreeing on crypto’s importance and 31% already holding at least one coin class.

Mr Lowe said gone are the days of perceiving crypto as a volatile mid to long term investment, as investors continue to back the investment option.

“Bitcoin recently hit another all-time high of US$68,521, then dropped as low as US$53,701 over the following two weeks. Picking price peaks and troughs is nearly impossible, even for professional traders.

“However the 1 year and 3 year return on Bitcoin is 190.7% and 235.2% respectively, returns that have significantly outperformed even the booming equities market. And other headline currencies like Ethereum also continue to perform strongly.

“It’s not a surprise then to see that our survey found these two coins are considered the most likely to offer the best returns over the next 12 months, with 58% of respondents and 47% respectively,” said Mr Lowe.

Commonwealth Bank Australia
The Commonwealth Bank of Australia. Image – Canva

Mr Lowe added that the Commonwealth Bank’s announcement it will allow customers to trade in up to 10 currencies has further solidified the legitimacy of crypto.

He added that the research was commissioned as Dacxi saw discrepancies between media reports and actual crypto market trends.

The research was undertaken with the objective of discovering if Australians are using crypto for wealth gain to meet short term goals, such as a house deposit.

“Instead we are finding the vast majority of investors are looking long term, which is a healthy approach to a rising asset class like cryptocurrency.”

Ian Lowe, Dacxi CEO

“Cryptocurrency is truly on its way to the mainstream now, with 21% of adults or 4.2 million people already own crypto in Australia, while almost one in four (23%) say they are likely to purchase crypto in the next year,” Mr Lowe concluded.

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