7 Key Findings About Australia's Cryptocurrency Market

The cryptocurrency market in Australia

There are many different types of cryptocurrencies available, but how they are doing in Australia is another matter.

In May 2022, ETFs for bitcoin (NEO:BTCC.B) and ether (TSX:ETHH) launched on the ASX, but they did not open to tremendous demand.

Meanwhile, the ASX has decided to upgrade its current CHESS system to a blockchain-reliant one, and it has been encountering difficulties, including seeing costs to members go up. While its still in development, it isn’t good news for those who were investing in crypto.

Legislation has been proposed to regulate cryptocurrency in the future. This could mean more security or stabilization for this new, tech-based medium of exchange, but in the early phases of such a cowboy currency as crypto, regulation could just as easily slow down what crypto is capable of.

At least at present, the ASX has not been terribly kind to cryptocurrencies. What does the future hold? And how does the Australian public view cryptocurrency?

The Gemini report says that 2021 was a “tipping point” for cryptocurrency – “…the best-performing asset class of the past ten years.” The methodology of the report is based on surveys. These surveys were quite substantive, with large sample sizes (at least 1,000 persons in each country) across 20 countries. Here are the key findings for Australia.

1. There is a significant difference between the number of male and female crypto investors in Australia

Women in Australia represent 27 percent of crypto investors – less than one-third.

This statistic should be considered in light of demographic information, which suggests that women represent slightly more than half the population, so they are much more underrepresented in the crypto market.

The future of the crypto gender gap might change, however, as the survey also indicated that 47 percent of first-time crypto purchases in 2022 are women, verses 40 percent in 2021.

2. Australia has low cryptocurrency ownership

On a ranking of the surveyed countries, Australia has one of the lowest percentages of crypto ownership – 18 percent – tied with Ireland and the UK, and situated sixth from the bottom. It ranks just ahead of Germany (17 percent).

The top ownership countries were Brazil and Indonesia, each with 41 percent. Again, considering statistical data in context is key, and this gap widens when considered against population totals. Brazil has a population of over 250 million people, while Australia only has 26 million. How much more so, then, is Brazil’s crypto ownership? To put this in very plain terms, one percent of Brazil’s population is 2.5 million people, and only 260,000 for Australia. Indonesia’s population is even larger than Brazil’s: more than 279 million people.

All this is to say: Australia has a comparatively low amount crypto ownership compared to other countries.

3. Australian cryptocurrency ownership isn’t necessarily a class thing

Countries were surveyed regarding income compared to ownership, and Australia’s high-income respondents represented 21 percent of the country’s crypto ownership – the lowest on the list.

Do note that the report does not specify what is meant by “high-income,” and that not every country had a large enough high-income sample size to make the list at all.

4. The top concern is security

Asked about why they weren’t investing in crypto, non-owner survey respondents from the “Asian Pacific” region (including Australia) gave security as the answer 40 percent of the time – more than any other reason given.

The next highest reason given was a lack of understanding how to buy or hold cryptocurrency. Again, we can see that this economic wave remains opaque for many people, which might impede its progress as the next big medium of exchange.

The Gemini survey also showed that 44 percent of Asian Pacific respondents would be more comfortable purchasing cryptocurrency with educational resources made available.

5. It won’t replace the Australian dollar any time soon

Is cryptocurrency the future of money? When asked this question, Australians gave a negative, with only 17 percent agreeing that it was. This suggests that cryptocurrency is unlikely to grow quickly in Australia.

Notably, no European country agreed in numbers higher than 23 percent; neither did the US or Hong Kong. Developing countries gave far more agreeable answers: Brazil had 66 percent agreement and Nigeria and Indonesia were also in the 60s.

This suggests that a stronger economy or local currency makes residents of that country less likely to trust or perhaps bother with crypto. Devaluation and hyperinflation were correlated to countries’ acceptance of crypto.

6. But it might be a good investment

At least according to crypto owners, 62 percent believed that cryptocurrency was a great way to diversify their portfolios. With growing numbers of crypto enthusiasts, albeit slower growth in Australia, this might prove quite true.

After all, even if not everybody gets on-board, crypto looks like it will continue to grow based on the sentiment expressed in these surveys, so it might be worth a risk to add it to a portfolio — although relying on it entirely could prove too risky for most.

In fact, 82 percent of crypto owners in the Asian Pacific region said they were holding crypto as long-term investment, so they have some faith in its staying power.

7. A note on the Asian Pacific region

Australia is in an odd place, geographically speaking, with this survey. Many of its results line up with Europe and the US more than its physically close neighbours. In the regional findings section of the survey, for instance, note that Australia (low ownership at 18 percent) is in the same group as Indonesia (41 percent ownership) and Singapore (30 percent).

With that in mind, it’s possible that some of the enthusiasm for crypto in the Asian Pacific region data (where Australian attitudes or opinions aren’t specifically laid-out) might be skewed by its neighbours.

Still, not every nation in the region is as enthusiastic as Indonesia. Hong Kong (24 percent) and India (20 percent), the other two countries surveyed in the Asian Pacific, are closer to Australia’s leanings.

It bears repeating: context matters with statistics, and so taking in this data with a savvy eye is necessary for the full picture. Australia is, population-wise, in the middle, so survey data might add more weight coming from Indonesia and less coming from Hong Kong.