Cryptocurrency or real estate?According to a study, just over one-fifth… | by Lukas Wiesflecker | The Capital | June 2021
According to a study, more than one in five Australians prefer to invest in cryptocurrencies over traditional asset classes.
Global confidence in traditional investment forms is declining. In particular, the decline in interest rates on savings accounts has led more and more people to look for alternatives. These include stocks, real estate, or cryptocurrencies over the past few years. Cryptocurrencies are also increasingly being used to purchase other asset classes, such as real estate.
The cryptocurrency exchange Kraken has now conducted a study to study the popularity of Bitcoin and Co. as a form of investment. According to this research, 22% of Australians believe that cryptocurrencies will beat other asset classes.
Among millennials (born between 1981 and 1996), the trend of cryptocurrency is even more pronounced. For example, about 40% of people in this age group believe that buying cryptocurrency is a good option for buying real estate.
In addition, 31% of Australians born between 1960 and 1980 believe that cryptocurrency is a better investment option. On the other hand, for Gen Z who were born between the late 1990s and 2010, this proportion is only 24%-although this is also a good number.
“Australians still hold a conservative attitude towards investment. Real estate is a cultural norm and is at the top of most investors’ wish lists. Nevertheless, as affordability is still an issue, we are seeing more and more young people looking for Other options to increase wealth,” said Jonathan Miller, managing director of Kraken Exchanges.
He said that they believe that more and more people will also invest in cryptocurrencies in order to diversify their investment portfolios. This should further strengthen the trends revealed by the new survey. However, it is necessary to educate people more about cryptocurrency. Here, knowledge is usually obtained from speculation.
Like stocks, real estate remains the most popular asset class in Australia and many other countries. But especially young people see cryptocurrency investment as an excellent opportunity. Compared with the stock market, the cryptocurrency market is also very unstable. Two-digit price changes are common here.
In particular, this often makes it difficult for newcomers to the cryptocurrency market to evaluate the market. In order to obtain high profits, many cryptocurrency investors sell their holdings when the crash is approaching. This usually exacerbates the loss of value because panic selling will increase further.