The Australian economy is moving from traditional finances and embracing digital currencies. The crypto experts believe the digital currencies would have taken over by 2029. This follows a new report by Finder that established that Australians have amassed over AUD 7 billion in crypto, with an average investor owning AUD2078. The charge towards crypto is fueled by Gen Z, with 31% of them owning crypto.
Overall, 17% of Aussies Own crypto, while a further 13% are looking to invest in them within the next year.
Bitcoin reigns supreme
While there are thousands of crypto investment options for the Aussies, the report established Bitcoin as the most popular. It is owned by 9% of the population. It is followed by Ethereum at 8%, Dogecoin at 5% and Bitcoin Cash at 4%.
The high rate of crypto ownership among Gen Z however remains quite eye-catching. While the rate of ownership among other generations has gone down since the start of the year, that of Gen Z has doubled in the same period. With the possibility of such patterns keeping on quite high, it is likely that traditional finance has no place in the future of the Australian economy.
Reasons for the crypto ownership increase
The high rate of crypto ownership among the Aussies is no accident. It is a result of the various market movements and strategic actions around the crypto economy. The first is access to crypto information. Aussies are more aware of crypto technology and how it works. They understand Bitcoin’s position as a hedge against fiat and inflation. They also understand the possibility of earning interest on the various cryptos assets like stablecoins and DeFi on the Ethereum platform.
The government’s positive approach to digital currencies has also led to the increased uptake. As one of the first countries to legalise cryptocurrencies, the country has clear regulations on digital currencies operations. This has led to a vibrant crypto world with multiple crypto-related services like the crypto exchanges such as Coinbase and BTC Markets.
The open crypto policy has made the digital currencies quote functional in the economy. Various merchants have integrated digital currencies as one of the payment methods for both online and physical shopping.
Cryptocurrency edging real estate as the ideal investment
The other finding that came out from the study is how the Australian investment market is changing. For the longest time, the Australian population had real estate as the most preferred investment option. However, the current trend is that they are now predominantly moving towards crypto investments.
A survey by Kraken in June established that 40% of Australian millennials prefer digital assets over real estate. The move is most probably due to the increasing costs of owning real estate. Given the economic decline over the coronavirus pandemic, the rates of real estate have gone up as the fiat currency declines leading to inflation.
At the same time, investments in digital currencies have been paying the best. Bitcoin for example has grown more than 300% since the start of 2020. Therefore, the future of the Australian economy is digital currencies, powered by Gen Z.
