Cryptocurrencies are known for being volatile and this year’s rollercoaster hasn’t deterred some true believers.
Some Australians are seizing the perceived opportunity to “buy the dip” and are investing more than ever before, according to the 2022 Independent Reserve Cryptocurrency Index.
Despite the price of Bitcoin and others plunging dramatically from 2021 highs, people investing $500 or more per month in crypto has risen by 10.3 per cent to 17.3 per cent.
But overall ownership of crypto has fallen to a quarter (25.6 per cent) of Australians saying they own or have owned cryptocurrency in 2022, down from 28.9 per cent.
The most significant drop was in the 18-24-year-old age group, sliding to one third (33.3 per cent) from more than half (55.7 per cent).
The overall Australian index fell from 54 to 45 in 2022 on a sharp dip in crypto ownership among younger Australians and fewer investors making a profit from speculation.
General cryptocurrency awareness among Australians increased slightly to 92 per cent and Bitcoin continues to be the most widely known, followed by the world’s second-biggest cryptocurrency Ethereum.
Ethereum completed a significant upgrade to its platform this year, known as “the merge”, that was designed to make it more scalable and energy efficient.
Now in its fourth year, the index is a national measure of the level of awareness, trust or confidence that Australians have in digital currencies.
“Our 2022 survey results reflect the period of global market uncertainty we’re currently experiencing,” Independent Reserve CEO Adrian Przelozny said.
“Despite this volatility, the 2022 IRCI data clearly demonstrates that Australians’ interest and investment in crypto remains high and continues to gain momentum.”
Ownership among respondents aged 35 to 44 jumped from 38 per cent in 2021 to 46 per cent in 2022, while 45 to 54-year-olds edged up from 25.3 per cent to 27 per cent.
For 55 to 64-year-olds, ownership grew from 9.7 per cent to 11.4 per cent.
After the proportion of women owning crypto doubled last year, female ownership nudged higher in 2022, up from 20 per cent to 21.4 per cent.
But regulation is struggling to keep pace and adapt to the growth of the crypto sector, Mr Przelozny said.
More than a third (36.1 per cent) of respondents said a lack of regulation and consumer protection was the main reason they didn’t invest in crypto this year, up from 24.8 per cent in 2021.
By Marion Rae in Canberra
