The US Treasury suggests a CBDC could rattle banks
According to a study by the United States Treasury, a CBDC or stablecoin might destabilise the banking system.
Australia might not be the first country that comes to find when one thinks of cryptocurrency holding and Bitcoin adoption, but investors on the Oceanic island have been increasing Bitcoin holdings considerably over the past year.
According to data from Statistica, the average portfolio size on cryptocurrency exchange markets for Bitcoin in Australia has increased by over double from 2020 to 2021’s financial year. According to the data, the Bitcoin market has risen from approximately $560 USD (or $795 AUD) to around $2,070 USD ($2849 AUD).
The data is compiled from a survey taken from Statistica, reviewing cryptocurrency activity in Australia. According to the results, males in the country make up more of the investment, with an average of around $2,215 USD ($3,050 AUD) in their holdings. However, the average increase in female Australian investors is slightly more, with average female investors looking at just below $2,000 USD with approximately $1,924 USD ($2,650 AUD) in holdings.
Who is investing in Bitcoin and crypto in Australia?
According to the research, the age group leading cryptocurrency adoption is those between 25 and 44 years, with the age group making up 69% of Bitcoin investment. Younger and slightly older investors sit tied in second place with 18 to 24-year-olds and 45 to 59-year-olds making up 18% each. 60 to 65 year-olds hold approximately 3% in the region, with those older only making up 2%.
However, the investment profile and behaviour change considerably with age. Those over 65 tend to invest much more (on average $5084 per investor) into Bitcoin compared to younger investors and they trade frequently. Those between 25 and 44 years tend to hold less on average (around $1871) but trade the most frequently, with average trades happening around 6 times a day.
As per the report, individual investors and sole traders have grown the most, while institutional is the slowest to gain. Despite this, company investment is still looking at an impressive 136% increase in Bitcoin and cryptocurrency holdings in the past fiscal year and self-managed super funds are sitting at a 155% gain.
Source: BTC Markets
The report from BTC Markets commented that the “average” cryptocurrency investor might be surprising and that this report breaks the connotation of what the profile of a Bitcoin trader might look like. The report also noted that with sustainable growth and significant increases as investors step into the cryptocurrency market, it is now up to the regulators to implement strategies to include Bitcoin and other cryptocurrencies in financial systems:
“The onus is now on the Australian regulators to catch up with this rapidly maturing market. In addition to all the stereotypes we have broken with our report about what the average crypto investor looks like, it is worth noting that crypto is the only industry calling for more regulatory oversight.”
Which cryptocurrencies are most popular in Australia?
According to the research, the leading five cryptocurrencies traded on Australian exchanges are Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), and Stellar (XLM).
Source: BTC Markets
The rise of cryptocurrency in Australia is echoed by research from financial comparison firm Finder. In a report released in August 2021, Finder’s research found that nearly 17% of Australians own cryptocurrency – making up a whopping $8 billion in total investment in the country. Finder’s data also emphasises that male investors are more likely to buy and hold Bitcoin compared to female investors.
Source: Finder
Resonating the findings above, a September report from financial comparison website Finder shows that one in six Australians own cryptocurrencies, amounting to $8 billion in total investment. The report suggests that, like many other users in advanced industrialized countries, Australians are increasingly viewing cryptocurrencies as a new asset class.
According to both Finder and BTC Market research reports, the main challenge in cryptocurrency adoption and hesitancy against buying Bitcoin is market volatility. Uncertainty about the industry and a lack of understanding of how and where to buy is also a factor holding Australian investors back from buying Bitcoin.