The 2021 Independent Reserve Cryptocurrency Index (IRCI) survey of more than 2,000 people found that the percentage of Australians surveyed who own or have owned a crypto reached 28.8%, against 18.4% in 2020.
The results suggest that the industry’s growth is being driven by the positive experience of those who own crypto, with 89% of those surveyed reporting making money or breaking even, up from 78% in 2020.
Independent Reserve CEO Adrian Przelozny told Cointelegraph that the results did not surprise him, due to an environment in which it has become “very difficult to obtain returns on investments”.
He said that “cryptocurrencies have easily outperformed all other assets over the past 12 months,” before adding:
âI think it’s quite natural that more and more people are interested in an asset class that is clearly outperforming the rest of the market. “
In October, Cointelegraph reported that Bitcoin (BTC) is the top performing official asset class of 2021.
Przelozny said he expects the trend to continue as crypto matures and becomes less volatile. He said that cryptocurrency’s “greatest ally” is that “the longer it lasts, the more accepted it becomes.”
“Over time, I think you will see the volatility and perceived risk of this investment decrease.”
28.6% of IRCI respondents who do not currently own crypto said they would invest if there were better consumer protections in place. An additional 26.6% said they would buy crypto if industry regulation was improved.
Regulation is needed for continued growth
Przelozny said that “the industry is still in desperate need of regulation to catch up and provide greater security for investors and cryptocurrency firms.”
âI think once the regulations are in place, we’ll see a whole new class of investors in this space. And I think that’s what we’ve seen in other jurisdictions, like Singapore. “
Przelozny told Cointelegraph he anticipates Australians over 65 will be the next big wave of investors as these regulatory issues are resolved.
“They are looking for consumer protections from the government before they want to take the plunge and enter the cryptocurrency market.”
Unsurprisingly, the 24 to 34 age group was the most confident in crypto with 27.6% saying they bought to get rich, while those in disbelief in the system are the most likely to be in the over 65 age group.
Related: Australians with crypto doubled in 2021: survey
According to IRCI, Bitcoin remains the best-known and most popular cryptocurrency, with 89.1% of Australians surveyed saying they have heard of it and 21.1% actually owning Bitcoin. The second most popular crypto asset is Ethereum, with 11% reported ownership, down from just 5% in 2020.
IRCI is an annual cross-sectional survey conducted by PureProfile among more than 2,000 Australians. Independent Reserve says its sample reflected the country’s gender, age and geographic distribution.