Growing crypto popularity among Australian Youth

A recent survey conducted by the Australian Securities Exchange (ASX) reveals the growing popularity of crypto in Australia.

The study report reveals that nearly 1/3 of young Aussie investors aged 18 to 24 held crypto in 2022. For several crypto analysts, this trend goes against the image of financial caution often associated with young investors.

• In Australia, 46% of young investors prefer "stable returns," but 31% of them significantly invest in crypto.
• The average crypto holdings among investors in this "next generation" amount to $2,700, representing 6% of their total portfolio. This is twice the average allocation of 3% observed in other age groups.

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Median amount invested in cryptocurrency and proportion of total portfolio. Check the original document for full figures

This surprising trend is partly explained by the young investors' desire to differentiate themselves from their parents and do things differently. Additionally, many new investors are attracted to the technology behind crypto.

The ASX study highlights another important point: centralized crypto exchanges pose a potential obstacle to investment growth in Australia. The recent legal actions taken by the SEC against Coinbase and Binance perfectly illustrate the challenges faced by centralized exchanges.

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Survey conclusion:

"Despite generally being a comparatively more volatile asset class, cryptocurrencies are still popular among investors. Our survey found that 29% of intending investors are considering investing in cryptocurrency and 31% of next generation investors were also considering investing in it. On the other hand, problems with cryptocurrency exchanges may act as a handbrake on future growth. There are also legitimate questions about the regulation of cryptocurrencies and the safeguards required to properly protect retail investors, with legislation currently before parliament. Overall, time will tell whether cryptocurrencies are fully accepted into mainstream investing"

While crypto is indeed becoming increasingly popular in Australia, the facts reveal another truth: full acceptance of crypto is not imminent.

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