In their latest research, global consumer insights company, Protocol Theory and cryptocurrency exchange, Easy Crypto, found that Australians are viewing crypto as a key to financial freedom, with many turning to digital asset investments instead of real estate.
The real estate industry has historically been a great sector to invest in – in fact, according to the research, 75 per cent of investors believe the sector has high returns. However, the high bar for entry makes it very difficult for new investors to get involved. As a result, they are looking for cheaper investments – one solution is crypto.
Examining the responses of 1,000 participants, the survey from Easy Crypto and Protocol Theory revealed that one in three Aussies own, have owned, or plan to own crypto. Compared to the estimated global crypto adoption rate of just 6.8 per cent, this puts Australia firmly in the ‘Early Adopter’ category of the crypto adoption continuum.
Digital assets’ popularity has soared as 68 per cent of respondents explained that their financial futures will be more challenging than they are today. As a result, 42 per cent expressed that crypto gives them hope for the future. Additionally, 40 per cent of Australian investors believe that crypto helps facilitate their financial freedom, with a further 40 per cent believing the digital assets deliver high returns.
What’s more, once they buy, they stay. More than 50 per cent stay invested in crypto despite market volatility, consolidating the trend that in 2024, crypto has now become a mainstream investment option.
Accessible investment
Ninety per cent of Aussies are concerned with the state of the economy, resulting in many looking to diversify their funds. Due to crypto’s cheap entry point, 64 per cent said they could afford to invest small amounts of money into crypto compared to just 22 per cent of Australian respondents who could confidently get into real estate.
Cryptocurrency has a wider appeal for younger generations, especially those Millennials to Gen Zs, as it is perceived as a pathway to financial freedom and more accessible than buying a house in 2024. It takes eight years on average to save for that first property deposit and by contrast, investing in crypto is easier with eight years equal to two crypto cycles.
“For many Australians, the dream of home ownership is at odds with their current economic reality. At the same time, crypto is seen as more mainstream – including by institutional investors – and our mission is to leave no one behind. The main goal of our research was to understand the next wave of cryptocurrency adopters and what we need to do to support them to make informed and smarter investment decisions,” explains Janine Grainger, CEO and co-founder of Easy Crypto.
She adds: “They are swapping lawns for ledgers. With the bricks and mortar becoming progressively challenging for younger folk – unless they have intergenerational wealth – and GenXers and Boomers looking to supercharge their retirement in an increasingly challenging economic environment, crypto has undeniable appeal.”
Achieving financial freedom
One in three investors believe that governments and banks are the top two things standing between them and financial freedom. As such, many have seen crypto’s attraction. Many Australian investors feel that cryptocurrencies enables greater equality for all, with up to 45 per cent of Aussie investors aged 39 or younger agreeing with this statement compared to 38 per cent for investment in property.
Investors want the industry to ‘level up’ in terms of providing a safe, secure investment environment; and one that is as safe as the traditional housing market for investors.
Driving adoption
Education will help make crypto even more appealing, with the survey revealing 70 per cent of Australians saying much of the information available is difficult to understand.
“While the consensus around confusion is disappointing, the findings are a clear call for the crypto industry to do a lot better when it comes to engaging with both existing and future investors,” says Grainger who believes that the trifecta that will drive adoption is investor motivation, opportunity and having a voice of trust.
“There is clear intent to invest and uptake is growing. What’s more, investors are disillusioned with current solutions and looking for alternatives. For them to close the value-action gap between identifying crypto as a way to create a better future for themselves – and acting on this belief – we need to ensure a much easier access to start investing in crypto,” believes Grainger.
Now is the time for products that address the biggest barriers to cryptocurrency adoption – volatility and complexity. These include user-friendly wallets that are suited to ‘beginners’. In addition, it’s time to prioritise ‘crypto for humans’, focusing our effort on a user-centred approach that simplifies all aspects of the crypto experience to accelerate adoption.
“Only by addressing these critical areas can the industry achieve the ‘trifecta’ needed for action,” concludes Grainger.
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