Crypto Adoption – An Australian Perspective

In recent years, Australians have increasingly turned to cryptocurrency as a legitimate investment strategy and method for wealth creation. The rate of adoption to this digital financial revolution at a pace comparable to the early days of internet.

Source: cryptonews.net

This trend continues despite the significant market pullback in late July through early August 2024, where Bitcoin saw a dramatic drop from around US$67,000 to just over US$50,000. While this 20% plunge wiped out over US$300 billion from the market, including substantial losses in other major cryptocurrencies like Ethereum, Solana and XRP, Australians demonstrated confidence in the crypto investing space by "buying the dip," highlighted by net inflows into Australia’s first ETF to directly hold Bitcoin, Monochrome’s IBTC. A strong sign indeed that despite all the fear, uncertainty and doubt on a global macro level, locally Australians are potentially seeing where their financial lifeboats are “moored”.

This investment behaviour possibly reflects a broader scepticism towards traditional financial systems. Many Australians are becoming increasingly aware of the debasement of their currency, driven by the government’s excessive spending and the resulting inflation. With inflation rates steadily rising, the cost of living has become a significant concern for everyday Australians, prompting them to seek alternatives that can preserve their purchasing power.

Cryptocurrencies and the investment in the potential they present, have emerged as a viable solution to counteract these concerns. The rise in active wallets also indicates a growing trust and adoption in digital assets.

Source: medium.com/geekculture/the-mass-adoption-of-ai-a-new-sigmoid-curve-c86cffe1617

Moreover, trends are possibly emerging where nominal profits generated from Australia's housing boom are gradually shifting from being stored as currency within conventional banking systems to alternative assets like crypto and precious metals.

This shift in sentiment not only reflects a disillusionment with traditional financial institutions but also a desire for self-sovereign monetary control. In a world where privacy, freedom and liberty are equally being debased, becoming your own central bank has never looked more attractive.

The data regarding cryptocurrency ownership among Australians doesn’t lie. As of early 2024, an estimated 4.5 million Australians own crypto, up from 4.2 million in 2022 and 3.4 million in 2021. This rise is particularly pronounced among Millennials and females, with ownership among women increasing from 11.9% to 16.1%.

Source: statista.com

Let’s consider, the youth have been priced out of saving for things like a home, the middle class are struggling to pay bills and the elderly are facing the very real threat that they don’t have enough currency saved to see them through; never before has it become more crucial for the population as a whole, to gain a strong understanding of crypto investing and the network / value proposition the technology represents. Our futures could depend on it.

So how is the crypto industry positioned within Australia? A quick search will point to around 117 companies operating within Australia. One could say this is a good start, but where would we be if regulations were clear for all participants? How many currently sit on the sideline with solutions that could provide technological advancement for the community, apps that would get national/ worldwide adoption or maybe streams of passive income to help with the cost of living? The Australian Government has had the regulatory discussion, the submissions are in… as a country, let’s get this done so all can benefit.

Australians are wising up in greater and greater numbers to the function of cryptocurrencies and Bitcoin to counteract the erosion of their purchasing power and benefit from the technology’s potential mass sdoption. Pull backs are frightening, but not as frightening compared to the loss of freedom of choice, choosing our means of transacting and the debasement of our currency. The community is growing … and it needs to! We need to come together, share our experiences and through a hive mind mentality, reshape our futures for the better.

About Ainslie Crypto:

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