Cryptocurrency is gathering momentum in Australia.
If you don’t own ‘crypto’, chances are you know someone who does or you plan on investing in the future.
The tedium of lockdown, combined with many people being out of work, has seen more Australians investigate digital currency as an investment vehicle.
Research by IBISWorld shows $29.2 million in cryptocurrency exchanges in Australia have been made this year, with the market growing by 62.2 per cent in the five years to 2021.
What’s more, one in four Australians already invest, or plan to invest, in cryptocurrency, a January 2021 survey of more than 1000 Australians by Finder revealed.
For many, the appeal of cryptocurrency lies in its futuristic innovation.
It has gradually become more and more acceptable, thanks to forward-thinking tech companies such as Elon Musk’s Tesla investing billions.
It’s also a great way to diversify, particularly for those who have investments with traditional asset classes.
Some even use cryptocurrency as a hedging tool.
While the volatility of cryptocurrency is widely publicised, many are more focused on the potential returns. Successful investors, particularly early adopters, have made healthy profits.
Skyrocketing value was cited as the reason 45 per cent of cryptocurrency investors purchased digital currency, the Finder survey found.
A major attraction also lies in the absence of a central bank controlling inflation.
Thanks to a decentralised system, cryptocurrencies weather much less economic and political interference in movements than traditional currencies.
Of all the cryptocurrencies, Bitcoin is the most popular.
It is now used by 13 per cent of Aussie investors, followed by Ethereum at 6 per cent and Ripple at five per cent.
Bitcoin was originally valued at just $0.01 back in 2009, yet by February 2021 it had exceeded a market cap of $1 trillion.
Across the world, more and more investors are getting on the crypto wagon. The Global Crypto Adoption Index shows global adoption across 154 countries increase by more than 880 per cent in 2020-21.
Digitisation, particularly in the financial space, is an ongoing adjustment many corporates and investors are gradually making.
So despite its growing popularity, there is still plenty of scope for new cryptocurrency investors to get on board.
To learn more about how to start your cryptocurrency investment journey, visit Swyftx Cryptocurrency Exchange.