Although more Australians are trading in cryptocurrencies, the majority still regard it as a “highly riskful” investment, which is why they meddle in digital currency. The Australian government intends to regulate the cryptocurrency sector. As part of a comprehensive revamp of the payments sector, Australia has become the latest country to regulate Bitcoin.
Sky News Australia spoke with RMIT Senior Research Fellow Aaron Lane, who stated that a Senate fintech committee was anxious about challenges such as “regulatory certainty” in the cryptocurrency sector. “It didn’t start off looking at cryptocurrencies, but the commission eventually zoomed in on cryptocurrency and the broader blockchain business in Australia,” he told Sky News Australia.
Despite stories of early adopters earning riches by trading cryptocurrencies, most Australians who invest in digital currency say it’s simply for fun. According to a Choosi consumer poll published late last year, nearly one in every 10 Australians is currently experimenting with cryptocurrencies. However, the majority of those who did so stated that they were doing it for “joy and enthusiasm.”
Covid-related dullness may have also played a role, with 60% of Australians who trade cryptocurrency consensus process within the last year. It is also significantly more popular among younger generations than older generations, and males are three times more likely than females to be invested. According to the report, 19% of Generation Y are involved, compared to 6% of Generation X and only 4% of Younger Generations.
Aussies on crypto:
In general, the majority of Australians feel cryptocurrency is a “very dangerous” investment, and 51% say there is a lack of transparency and regulatory responsibility. Others are more concerned about the prospective benefits, with 46% of citizens believing their investments would provide long-term growth prospects and 32% of people expecting short-term profits. Transaction privacy and trusting cryptocurrency over other financial assets were additional appealing factors.
Meanwhile, the number of people who don’t comprehend what bitcoin is growing. Approximately 38% of crypto investors claimed to have little or no understanding of how it all works. “It is troubling that many investors do not completely understand what they are investing in and do not have the right risk profile to allow them to engage in such turbulent markets,” said Griffith University’s financial literacy expert.