Australian Cryptocurrency Investors Tell All in Major Research Study

Research on cryptocurrency investors

Independent Reserve—one of Australia’s pioneering, longest-standing cryptocurrency exchange operators—recently commissioned research into what Australians think of cryptocurrencies as a viable investible asset class.

The results of this research were shared with Nugget’s News on Tuesday. There are plenty of interesting findings, to be sure. Some more so than others. Let’s explore further, shall we?

The start of something new

Before delving into the findings, it’s worth explaining a bit more about the research itself. It was in fact the inaugural annual edition of a new initiative launched by Independent Reserve called the Independent Reserve Cryptocurrency Index (IRCI).

According to the pioneering Australian exchange operator, the purpose of IRCI is “to paint a clear picture of the cryptocurrency economy within Australia.” Beyond representing invaluable quantitative data to assist its own development strategy, Independent Reserve pointed out that it hopes the IRCI is of particular benefit to policy makers, helping them “see the trends and to make informed decisions to help our sector grow to its full potential.”

For the inaugural IRCI, Independent Reserve said it was based on a cross-sectional survey that was “that was geographically and demographically proportionate to Australia’s population.” In total, 1,000 Australians “from all walks of life” completed Independent Reserve’s survey.

What Independent Reserve found

Overall, the IRCI’s findings suggest that Australians maintain a positive outlook with regards to cryptocurrencies. Independent Reserve found that there are as many cryptocurrency owners in Australia (i.e., 17 per cent) as there are investment property owners (i.e., 17 per cent).

Perhaps unsurprisingly, the percentage of younger Australians that have exposure to cryptocurrencies is above the national average. Specifically, Independent Reserve found that 35 per cent of millennials and 27 per cent of Gen Z own cryptocurrency. Noteworthily, these are the two age demographics that have been losing the most ground as far as the composition of Independent Reserve’s user base is concerned.

When asked by Independent Reserve whether they were likely to buy cryptocurrency over the next six months, 39 per cent of millennials and 33 per cent of Gen Z responded affirmatively. Only 2.5 per cent of retirees indicated a likely intent to buy cryptocurrency over the same period.

Independent Reserve found that one in five Australians are likely to buy cryptocurrency in the next six months.

When it came to what cryptocurrencies Australians had exposure to, 73 per cent of investors said they hold bitcoin. A quarter of cryptocurrency owners said they had exposure to a combination of XRP (XRP), ether (ETH), and litecoin (LTC). Despite ETH posting a reported market cap that is currently nearly double the size of XRP—according to Messari—the latter was found to be more popular among Australian cryptocurrency investors than the former, albeit slightly.​

Bitcoin is the most popular cryptocurrency among Australian investors.

Commenting on Independent Reserve’s research findings was co-founder and chief executive Adrian Przelozny. “Our inaugural IRCI has shown that cryptocurrency investors in Australia are a far broader group than the stereotypical ‘sophisticated crypto investor’ that sits in front of multiple screens tracking price movements every day. Their goals are also far removed from the mindset of day-traders on the stock market—a quarter of all respondents under the age of 44 are considering using their superannuation to purchase crypto.”

“Like the property market for the generations before them,” Przelozny added, “younger Australians are seeing cryptocurrency as a method of increasing their overall wealth in the long term. As we see our market continue to mature, we should see the majority of millennials and Gen Z’s owning some cryptocurrency in the next five years, which will truly move us into the mainstream investment category.”

Sick of having to trawl through the abundance of clickbait-y cryptocurrency and macro finance headlines?

Let Nugget’s News do the work for you with an extensive recap of the week’s events from not just the crypto space, but also that of macroeconomics and finance in our weekly digest.

There’s market commentary, too, as well as sentiment analysis, what to expect in the week ahead, a comprehensive calendar highlighting upcoming events and much more.

Sign up to Nugget’s Weekly Digest for less than $2 AUD a week.