Research by the Australian Securities Exchange (ASX) found that despite declaring a desire for “stable returns,” one-third of young Australian investors have entered the risky world of cryptocurrency. These “next generation” investors, who are between the ages of 18 and 24, are known for their courageous moves into the unknown and expertise in technology.
According to the report, these investors possess $2,700 worth of cryptocurrencies on average, equivalent to 6% of their overall portfolio. This daring new investing strategy has not only drawn attention, but it has also eclipsed the 3% allocation of other age groups to cryptocurrencies, demonstrating a significant shift in investment trends.
These youthful adventurers don’t hold the distinction of having the most large bitcoin holdings, though. With 69% of all investments, “wealth accumulators,” or investors between the ages of 25 and 49, own the majority of digital assets.
The Australian Investor Study of the ASX included cryptocurrencies as an asset class for the first time in this study. As a result, the research treated the topic cautiously, stating that it is still debatable whether cryptocurrencies can be “fully accepted in mainstream investing.”
But the appeal of cryptocurrency is still strong. Surprisingly, 29% of all potential investors plan to invest in cryptocurrencies in the upcoming year. Young Australian investors’ risk-taking attitude is a reflection of their appetite for innovation and provides a vivacious ray of optimism for the future of cryptocurrencies in these unsettling times.
Notably, centralized cryptocurrency exchanges were mentioned as a potential “handbrake” on the development of crypto investing.
The recent wave of legal actions brought by the United States Securities and Exchange Commission against the two largest exchanges in the country, oinbase">Coinbase and Binance, serves as a crystal-clear illustration of the difficulties centralized exchanges face.
Australian cryptocurrency exchanges have recently had difficulties as well. Binance Australia said in May that all Australian dollar-denominated services would be suspended in June after the exchange’s local payments provider was told to stop supporting them. Westpac, Australia’s second-largest bank, forbade customers from conducting business with the exchange on the same day.
In the month after the ASX’s report, Commonwealth Bank, which is the largest bank in Australia, stated that it might refuse some payments to crypto exchanges, citing a high probability of fraudulent activities. The ASX’s report was based on an extensive online survey of 5,519 Australian adults conducted in November 2022.
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