According to one study, just over a fifth of Australians prefer to invest in cryptocurrencies over conventional asset classes.
Confidence in conventional forms of investment is declining around the world. In particular, falling interest rates on savings accounts lead more and more people to seek alternatives. These include stocks, real estate, or, for a few years now, cryptocurrencies. Increasingly, cryptocurrencies are also being used to buy other asset classes, such as real estate.
Crypto exchange Kraken has now conducted a study examining the popularity of Bitcoin and Co. as a form of investment. According to the study, 22 percent of Australians believe that cryptocurrencies would outperform other asset classes.
Among millennials (born between 1981 and 1996), the trend towards cryptocurrencies is even more pronounced. About 40 percent of this age group, for example, see buying cryptocurrencies as a good alternative to buying real estate.
Furthermore, 31 percent of Australians born between 1960 and 1980 see cryptocurrencies as the best investment option. For Generation Z, born between the late 90s and 2010s, on the other hand, it was only 24 percent, although this is also a good number.
“Australians still have a conservative attitude when it comes to investing. Property is a cultural norm and ranks high on most investors’ wish lists. Still, as affordability continues to be an issue, we see 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 pursuit of portfolio diversification. This should further strengthen the trend revealed by the new survey. However, there is a need to educate people more about cryptocurrencies. Here, knowledge is often obtained from speculation.
Real estate remains the most popular asset class in Australia and many other countries, alongside equities. But especially the younger population sees cryptocurrency investments as a great opportunity. The cryptocurrency 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 evaluate the market. Hoping for big profits, many crypto investors sell their holdings when a crisis is approaching. Usually this compounds the loss in value, as panic selling spikes even more as a result.
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