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December 12, 2023

The Growth of Cryptocurrency Interest in Australia

The Growth of Cryptocurrency Interest in Australia
Katya Richardson

Written by Katya Richardson

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2023 has seen a striking increase in interest from investors as a result of cryptocurrency’s ability to draw in investors from all around the world. investors are becoming more interested in this new asset class as digital currencies become more widely accepted and have the ability to generate returns

Why are more Aussies getting into crypto nowadays? Could it be because investing in Bitcoin is now easier, or there are heaps of apps and platforms that make dealing with digital money simple? This article will discuss the key factors that influence the increase of Australia’s Growing Interest In Cryptocurrency.

The Surge of Cryptocurrency Popularity in Australia

The latest Swyftx Australian digital assets survey shows that cryptocurrency adoption is still on the rise in the country. Australia now has the highest rate of cryptocurrency adoption among developed countries at 23%, and it’s the 8th highest globally. This is higher than the 16% in the USA and 12% in the UK, according to Statista.

Currently, about 4.5 million Australians own crypto, up from 4.2 million in 2022 and 3.4 million in 2021. There’s been a notable increase in female ownership of digital assets, from 11.9% to 16.1% over the past year.

In Australia, particularly among millennials, there’s been a huge surge in interest in cryptocurrencies. Millennial adoption has jumped from 35.6% to 40.7%. Overall, 32.4% of Australians now own or have owned digital assets. Ownership in Victoria has grown faster than in other states, with just over one in five Victorians (21%) now owning digital assets, a 6% increase from the previous year.

With the upcoming Bitcoin Halving in 2024, this could further influence the ease and potential returns of investing in Bitcoin in Australia. Learn more about what this significant event might mean for Bitcoin.

Key Factors Driving the Growth

According to the 2023 Swyftx Australian digital assets survey, the primary reasons Australians own cryptocurrency are:

  • Giving it a Go and Learning: A lot of Aussies are keen on cryptocurrencies because they’re new and exciting. They’re not just buying crypto to make money; they’re also keen to learn about this new tech. It’s a bit like getting hands-on to understand what all the fuss is about, whether it’s about how blockchain works or how crypto fits into the bigger picture of money and investing.
  • Chasing a New Investment: The second big reason is all about investment. Cryptocurrencies like Bitcoin have had some big wins in the past, which catches the eye of Aussies looking for ways to grow their money outside of regular options like shares or property. By putting some money into crypto, they’re hoping to see some strong returns, despite the ups and downs in prices. It’s a bit of a punt, but one that could pay off big time.

But there are also various reasons why people invest in cryptocurrency, including:

  • Appreciating Value: Many investors are drawn to cryptocurrency with the expectation that its value will increase, providing a profitable return on their investment.
  • Portfolio Diversification: Others invest in crypto as a way to diversify their investments, spreading them across different asset types to lower the overall risk of their investment portfolio. Ever wondered if your super can go digital? Here’s a deep dive into SMSFs and their growing relationship with cryptocurrency.
The Growth of Cryptocurrency Interest in Australia

Australian Market Trends in Cryptocurrency

The cryptocurrency market is seeing some significant trends in Australia. More Aussies are getting into cryptocurrencies, using them for both investments and everyday transactions. According to a study by the ASX, Australians are now investing an average of 15% of their money in cryptocurrencies.

At the same time, regulatory bodies are actively working to establish clear rules to protect investors and encourage responsible innovation. The government and regulators are striving to create a safe environment for those investing in cryptocurrencies. Many Australians view cryptocurrencies like Bitcoin and Ethereum as legitimate investment options. Interestingly, some businesses are even starting to accept cryptocurrencies as a form of payment. This is becoming easier due to the availability of apps and websites that make using cryptocurrencies more convenient.

This growing trend is expected to further boost the usage and acceptance of digital currencies in our daily lives. Additionally, educational programs are helping Australians better grasp the technology and understand both its potential benefits and risks.

Government Stance and Regulations

The current state of cryptocurrency in Australia, as of October 2023, indicates a significant shift towards regulation and oversight. The Australian government has outlined a plan to require cryptocurrency exchanges and digital asset platforms to obtain a financial services license. This will protect people from losing money if a crypto company fails. This is all to make the digital money world safer and more controlled in Australia.

In the shadow of new regulations, the dark side of crypto emerges. Arm yourself with knowledge to spot and sidestep cryptocurrency scams.

The Future of Cryptocurrency in Australia

In conclusion, Australia’s growing interest in cryptocurrency reflects a significant shift in both public perception and governmental approach towards digital assets. It shows by the recent announcement, that there will be regulations coming next year that could help steady the market by removing untrustworthy or unstable businesses. It will aid in making the crypto market more reliable and strong

The experts also predict that the cryptocurrency market in Australia will grow, and more Australians might start using it. The potential for profit and diversification of investment portfolios may drive interest among retail and institutional investors alike.

The information presented on this website is general information only. It should not be taken as constituting professional advice from the website owner – Hiddup PTY LTD (Hiddup). Any information regarding past performance and returns contained on this website should not be construed or interpreted as a prediction or opinion as to future performance and returns. Hiddup is not a financial adviser. All views and observations expressed by Hiddup on this website are for information purposes only, are general in nature and should not be treated as investment or financial advice of any kind.