Australian investors' interest in cryptocurrencies rises, but volatility holds them back

Cryptocurrencies are widely adopted in Australia, but volatility remains a major factor holding investors back from entering the space, a new survey shows.

In a January survey of 1,004 participants by Australian survey site The Finder, about a quarter of respondents revealed that they invested in or planned to buy cryptocurrencies.

According to The Australian, the latest survey results show that this number has grown significantly. Among an unknown number of respondents, about one in six Australians (about 17%) said they now own cryptocurrencies. Another 13% said they are interested in cryptocurrencies and will invest in this emerging industry over time.

But most of those who participated in the new survey pointed to volatility as a big deterrent. About 43% said erratic price swings were a major concern for them when investing in cryptocurrencies. That’s up 14% from the January survey.

In addition to volatility, the knowledge gap of cryptocurrencies was at 19%, and limited utility at 18%. Another barrier was that Australians did not know how to buy cryptocurrencies, at about 22% of respondents.

50% of male respondents said volatility was the reason they would not invest in this emerging asset class, compared to 37% of female respondents.

Commenting on the results, Kate Browne, personal finance expert at The Finder, said that risks continue to undermine cryptocurrency adoption, but she also noted that this is the norm for any investment.

Kate Brown noted that the growing participation of women in the cryptocurrency space is a good sign. She said this is because more businesses are accepting Bitcoin payments, and the use of Bitcoin ATMs and debit cards has further promoted the growth of digital assets.

Despite the recent increase in volatility, Bitcoin (BTC) remains the leader, with 9% of Australians investing in it. However, it has lost 4% of its market share compared to the 13% in the January survey. Ethereum (ETH) is close behind with 8%, and meme-based Dogecoin (DOGE) is in third place with 5%. Finally, Bitcoin Cash (BCH) ranks behind with a 4% share.

The latest survey also pointed out that a quarter (about 25%) of people believe that cryptocurrencies are overvalued. This figure is 9% higher than the previous survey. In addition, 32% of respondents said that they would rather buy stocks or keep money in a savings account than buy cryptocurrency assets.

The cryptocurrency market saw negative price action after Tesla boss Elon Musk expressed concerns about the environmental impact of Bitcoin mining. The cryptocurrency market has lost 50% of its value since then and is still struggling. On the 24-hour chart, Bitcoin is currently trading at $35,600, down slightly by 0.75%.

Cryptocurrency is a product of a disruptive era and a global carnival.
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