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A quarter of Australians plan to buy crypto in the next 12 months, reveals Swyftx survey
Coinhead
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Aussie crypto exchange Swyftx has this week released the largest annual crypto survey in the country. Key takeaway? Crypto adoption is on the rise in Australia.
In fact, as the headline just about tells you, around a quarter (actually 26%) of Aussies surveyed intend to make some sort of cryptocurrency purchase within the next 12 months.
And as for those who have yet to stumble into a crypto-related rabbit hole in any meaningful way, the survey also indicates that about one million non-crypto owning Aussies are expected to enter the market in the next year.
They’ll possibly/probably be buying when prices are significantly higher than the crypto-winter sale offerings we’re getting now. (Although that’s Coinhead’s opinion, not necessarily Swyftx or YouGov’s.)
The findings come from Swyftx’s second Annual Australian Crypto Survey, conducted by global market research company YouGov. It questioned 2,609 adult Australians in early July, with 548 of the survey sample identified as current crypto holders.
There are also some slightly less bullish and nuanced takes to glean from it, so let’s take a further look.
The survey’s highlights
• Despite the ongoing bear market and stupendously unhelpful global macroeconomic conditions, 26% of Aussies are likely to buy crypto over the next 12 months.
• And that’s a fair bit for an emerging asset class. Meanwhile, 41% of Australian adults say they are likely to buy stocks in the next 12 months.
• Around one million non-crypto owning Aussies are expected to enter the crypto market in the next year, with Millennials and Gen Zers the most likely to buy. (Boomers, fellow Gen Xers… maybe dip a toe in? It’s not that cold.)
• Trust in digital assets has fallen amid the crypto winter. Just over six in 10 (61%) indicated they haven’t bought crypto due to a general lack of trust in the asset class – up 3% on last year’s survey.
• Lack of effective regulation remains the key barrier to market entry among non-crypto users. (Hurry up and get your token mapping started/finished then, Albo. Please.)
• Crypto adoption rates in the country increased by four percentage points over the past 12 months, with 29% of Aussie adults saying they own (21%) or have owned crypto in the past (8%).
• More than half (53%) of respondents reported using digital assets to purchase goods and services in Australia last year, a 10% increase on last year’s survey.
‘There’s belief in the fundamentals’
Commenting on the findings, Swyftx Head of Strategic Partnerships, Tommy Honan, said:
“This is the first real sign that Australians are looking to a future beyond the crypto winter. Even in the midst of a bear market, there’s belief in the fundamentals of cryptocurrency and blockchain technology, and this is manifesting itself in a high intention to buy digital assets among under 50s.
“But the crypto winter has taken a toll, with trust in digital assets in the country falling as a result of the failure of some big crypto projects.”
Yep, thanks a bunch Terra Luna founder Do “Wanted by Interpol” Kwon.
“It’s interesting to see such a significant uptick in the number of Aussies using crypto to shop online because it speaks to where the future of digital assets almost certainly belongs,” said Honan.
“Over the next five to 10 years, we expect to see far fewer cryptocurrencies and far less market volatility. Digital assets and traditional finance likely will become indistinguishable from one another,” concluded the Swyftx exec.
‘It makes sense for Australia to become a world-leading crypto hub’
Further to Honan’s commentary, Stockhead grabbed a few minutes with Swyftx analyst Pav Hundal to get his take on some of our related ponderings:
Hi Pav. Could you please identify what might be catalysts for further crypto adoption in Australia?
Long term, a big catalyst for cryptocurrency adoption is almost certainly going to be proper legislation. As the The primary reason for crypto hesitancy at the moment among Aussies is that they simply don’t feel digital assets are well regulated.
On current trajectories, our analysis suggests half of Australian adults under 50 will either own, or have owned digital assets within the next two years. But current market volatility is weighing on sentiment and that makes forecasting future adoption rates extremely difficult.
We’re working on the thesis that you could see a rapid increase in adoption across both retail and business when digital assets are regulated.
In terms of regulation, is Swyftx confident it’s hearing the right noises so far from the Albanese government?
Well the drumbeat for new rules is growing and we certainly welcome the fact the government is planning to consult on cryptocurrency legislation so early in its first term.
Albo and co. have made consumer protection a strong part of their crypto-legislation rhetoric so far, right?
That’s because the imperative for both the government and industry is to properly protect consumers.
But overall, the pace of digital asset adoption in Australia does lend added urgency to the need for legislative clarity.
Do you think Australia has a chance to take the lead on becoming a world-leading crypto hub? Or are our governmental mechanisms too slow and conservative?
Australia has one of the highest rates of cryptocurrency adoption in the world and we’re also developing some of the world’s most innovative blockchain projects, so it makes sense for us to take a lead on legislation and become a world-leading crypto hub.
As for new user uptake on Swyftx’s platform, does that reflect a natural slowdown due to the far-reaching bear market? Or are there some encouraging signs there?
Participation and trading rates have slackened during the bear market but we’re not yet seeing any evidence of Australians exiting the market. Buy orders continue to significantly outstrip sell orders by at least 50% on our platform, continuing a trend we’ve seen all year.
