New research from consumer site Finder and cryptocurrency exchange Coinbase has revealed a notable shift in the financial habits of Australians, with more than a quarter (27%) of the population indicating they have owned or are interested in own cryptocurrencies in the last 12 months. This figure equates to approximately 5.6 million people, reflecting a growing curiosity and engagement with digital assets among Australians.
The Consumer Cryptocurrency Report 2024, which surveyed more than 3,000 Australians, provides a comprehensive look at the country's attitudes and behaviors towards traditional finance and cryptocurrencies. The survey sample is nationally representative in age, gender, location and income, making it one of the largest and most statistically significant explorations of the topic in the Australian context.
According to the report, younger generations, specifically millennials and Generation Z, are leading the adoption of cryptocurrencies, driven by their familiarity with digital technologies. High net worth individuals and professionals in the technology and finance sectors also show significant interest in cryptocurrencies. The high average cryptocurrency portfolio, valued at AU$21,426, indicates that those who engage in cryptocurrency trading tend to be sophisticated investors.
Despite this growing interest, Australia lags behind its global counterparts in terms of actual cryptocurrency ownership. Only 9% of Australians have owned cryptocurrency in the last 12 months, compared to a global average of 11%. Many cite a lack of understanding and trust as critical barriers. In fact, a significant proportion of the population consider cryptocurrencies to be too complex or are uneasy about the macroeconomic environment and associated cost of living pressures. This sentiment is shared by 35% of cryptocurrency owners and 34% of non-cryptocurrency owners who feel they do not have enough funds to invest. Furthermore, 30% of current cryptocurrency owners and 31% of potential investors are wary of market volatility.
John O'Loghlen, APAC Regional Managing Director at Coinbase, emphasized the need for regulatory certainty and trust to encourage more informed investment decisions. โAustralia is a cryptocurrency-curious country and most Australians believe that cryptocurrencies have an important role to play in the economy. However, many Australians still feel they do not understand cryptocurrencies well enough to invest in them or lack the confidence to do so in the current economic climate. โThe data shows that Australians need regulatory certainty, trust and confidence to make more informed decisions and take their first steps towards cryptocurrency ownership,โ he said.
The findings also highlight that wealth creation and portfolio diversification are the main motivators for cryptocurrency ownership. More than half of cryptocurrency investors trade at least once a month, with a notable 13% trading weekly or more frequently. A significant portion of cryptocurrency owners also own traditional investments, including stocks, suggesting a diversified asset management strategy. Around 76% of cryptocurrency owners also have investments in stocks, and 32% of stock owners have also ventured into cryptocurrencies.
Looking ahead, there is shared optimism about the future of cryptocurrencies among Australians. More than a third (38%) of cryptocurrency owners and non-owners feel positive about the outlook for cryptocurrencies over the next year. In particular, 48% of respondents believe that cryptocurrencies have a positive social impact, while 56% see them as the future of finance.
Security and regulatory clarity remain major concerns. Half of respondents rate security and exchange reputation as crucial considerations when it comes to cryptocurrencies. Some 43% favor government regulation, although 39% believe the government is slow to implement necessary regulations in a rapidly evolving sector. Looking globally, the examples of the EU, the United Kingdom, Singapore, the United Arab Emirates and Bermuda provide more defined regulatory frameworks for cryptocurrency operations, which could serve as models for Australia.
Graham Cooke, head of consumer research at Finder, underlined the importance of these findings. โWhether you are a naysayer or a HODLer, the research makes it clear that the crypto space in Australia is full of very committed participants. For many of those involved in the game, cryptocurrencies have evolved from a speculative investment to an important tool for wealth creation and diversification,โ he stated.
