In 2021, the Independent Reserve Cryptocurrency Index (IRCI) survey of more than 2,000 people found that the proportion of Australians surveyed who own or have owned cryptocurrency has risen from 18.4% in 2020 to 28.8%.
The results show that the growth of the industry is driven by the positive experience of people who own cryptocurrencies, with 89% of respondents saying they have made money or break even, up from 78% in 2020.
Independent Reserve Bank chief executive Adrian Przelozny told Cointelegraph that these results were not surprising to him, because in this environment, “getting a return on investment becomes very difficult.”
He stated that “in the past 12 months, cryptocurrency has easily outperformed any other asset”, and then added:
“I think it’s natural for more and more people to be interested in an asset class that is significantly better than other assets in the market.”
In October, Cointelegraph reported Bitcoin (BTC) is the official best performing asset class 2021.
Przelozny said that he expects this trend to continue as encryption technology matures and volatility decreases. He said that the “biggest ally” of cryptocurrency is “the longer it exists, the more it will be accepted.”
“Over time, I think you will see the volatility and perceived risk of this investment decrease.”
28.6% of those surveyed by IRCI who currently do not own cryptocurrency stated that they would invest if there were better consumer protection measures. Another 26.6% said that if industry regulation is improved, they will buy cryptocurrency.
Sustained growth requires regulation
Przelozny said, “The industry still urgently needs regulation to catch up and provide investors and cryptocurrency companies with greater security.”
“I do think that once the regulation takes effect, we will see new investors enter this field. I think this is what we see in other jurisdictions, such as Singapore.”
Przelozny told Cointelegraph that he expects that as these regulatory issues are resolved, Australians over 65 will become the next wave of investors.
“Before they are willing to venture into the cryptocurrency market, they are seeking consumer protection from the government.”
Unsurprisingly, the 24-34-year-old age group is the most trusted cryptocurrency. 27.6% of people said they bought it to get rich, and those who do not believe in the system are most likely to appear in the 65-year-old age group.
According to IRCI data, Bitcoin is still the most famous and popular cryptocurrency. 89.1% of Australians surveyed said they have heard of it, and 21.1% actually own Bitcoin. The second most popular crypto asset is Ethereum, with reported ownership of 11%, up from 5% in 2020.
IRCI is an annual cross-sectional survey of more than 2,000 Australians conducted by PureProfile. The independent reserve stated that its sample reflects the country’s gender, age, and geographic distribution.