According to a study, just over a fifth of Australians prefer to invest in cryptocurrencies rather than conventional asset classes.
Confidence in conventional forms of investment is declining worldwide. In particular, falling interest rates on savings accounts lead more and more people to look for alternatives. These include shares, real estate, or, for some years now, cryptocurrencies. Increasingly, cryptocurrencies are also being used to buy other asset classes such as real estate.
The crypto exchange Kraken has now conducted a study that examines the popularity of Bitcoin and Co. as a form of investment. According to the study, 22 percent of Australians believe cryptocurrencies would beat other asset classes.
Among millennials (born between 1981 and 1996), the trend towards cryptocurrencies is even more pronounced. Around 40 percent of this age group, for example, see the purchase of cryptocurrencies as a good alternative to buying real estate.
Also, 31 percent of Australians born between 1960 and 1980 see cryptocurrencies as the better investment option. For Generation Z — born between the late 90s and 2010 — on the other hand, it was only 24 percent — though this is also a good figure.
“Australians still have a conservative attitude to investing. Property is a cultural norm and high on most investors’ wish lists. Still, as affordability continues to be an issue, we are seeing more young people looking for other options to grow their wealth,” said Kraken Exchanges managing director Jonathon Miller.
He said they are confident that more and more people will also invest in cryptocurrencies in search of portfolio diversification. This should further strengthen the trend revealed by the new survey. However, it is necessary to educate people more about cryptocurrencies. Here, knowledge is often picked up from speculation.
Real estate is still the most popular asset class in Australia and many other countries, along with shares. But especially the younger population sees investments in cryptocurrencies as a great opportunity. The crypto market is also very volatile compared to the stock market. Double-digit price changes are quite common here.
This, in particular, often makes it difficult for newcomers to the crypto market to assess the market. In the hope of high profits, many crypto investors sell their holdings when a crash is approaching. This usually exacerbates the loss in value, as panic selling increases further as a result.
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