Australian Crypto Ownership Drops Following Market Fluctuations in 2022: Research
New research shows that fewer Australians are adopting cryptocurrencies (crypto) following their fall in value in 2022. However, the sharp price swings have not deterred some of the population from getting deeper into crypto.
According to a new report by digital currency exchange Independent Reserve, the Independent Reserve Cryptocurrency Index (IRCI), which measures the level of awareness, trust, confidence and adoption of digital currencies among the Australian population, rose from 54 to 45 in 2022.
The drop reflects lower ownership rates, fewer people making a profit, and lower confidence in the medium term, as the prices of Bitcoin and other digital currencies have fallen dramatically from their 2021 highs.
Specifically, overall crypto ownership by Australians has increased from 28.8% in 2021 to 25.6% in 2022.
The biggest drop was in the 18-24 age group, with ownership dropping from 55.7% to 33.3%.
However, contrary to the general trend, the percentage of Australians investing $500 (US$333) or more per month in crypto increased from 10.3% in 2021 to 17.3% in 2022.
Similar growth was also seen among those investing between $1 and $100 per month, with the proportion of participants increasing from 11.6% to 26.5%.
This suggests that some Aussies saw the fall in the value of crypto as an opportunity and decided to invest more to take advantage of lower prices.
“The results of our 2022 survey reflect the period of global market uncertainty we are currently experiencing,” said the CEO of Independent Reserve. Adrian Przelozny said.
“Despite this volatility, the IRCI 2022 data clearly demonstrates that Australian interest and investment in crypto remains high and continues to gain momentum.”
Older Australians are interested in crypto
While the 18-24 age group was driving the decline in overall crypto ownership, other age groups have shown increased interest in this type of digital asset.
Notably, ownership among respondents aged 35 to 44 reached 46% in 2022, up from 38% the previous year.
For those aged 45 to 54, ownership fell from 25.3% to 27%.
In comparison, 11.4% of 55-64 year olds reported holding crypto (up 1.7%), while the figure for the 65+ age group was 5.1% ( up 1.2%).
Crypto is becoming more popular among Australians
The report states that general cryptocurrency awareness increased slightly to 92% in 2022, with Bitcoin continuing to be the most well-known digital currency (91%), followed by Ethereum (43%) and Dogecoin (36%). %).
Meanwhile, family and friends remained the most influential factor affecting crypto adoption, with 49.2% of respondents citing this as the reason for their investments, followed by media coverage and portfolio diversification. .
Despite growing public awareness, Przelozny said regulations are struggling to keep pace and adapt to changes in the crypto industry, which is reflected in the attitude towards digital currencies of many Australians. .
The survey found that more than a third of respondents saw a lack of regulation and consumer protection as the main reason preventing them from adopting crypto, up from 24.8% in 2021.
“As more and more Australians invest in digital assets, it is essential that we have a robust and competitive regulatory, tax and policy framework that deals with these assets,” the report said.
Tens of thousands of Australians affected in FTXcollapses
The report came following the collapse of popular crypto exchange FTX, which put 30,000 Australian investors in a precarious situation.
Affected FTX clients have sought to recoup some of their losses, with many now facing significant financial difficulties.
The Australian Financial Review reported that KordaMentha, FTX Australia’s liquidation process administrator, received hundreds of emails from affected clients across the country asking for their funds to be refunded, with losses ranging from $40,000 to $1 million.
Administrators found $3 million in an FTX Australia account and another $39 million in an account linked to FTX Express, but warned that significant sums remained unpaid.
KordaMentha said the company has begun responding to inquiries from thousands of FTX customers and creditors it has received and advised affected parties to remain patient due to the complex administrative process.
The first virtual FTX creditor meeting will be held on December 1 at 11 a.m. AEDT, where KordaMentha will provide an update on the administrative process.
Creditors will also have to decide whether or not to appoint an inspection committee at the meeting.
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Alfred Bui is an Australian journalist based in Melbourne and focuses on local and business news. He is a former small business owner and holds two master’s degrees in business law and business law. Contact him at [email protected]
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