Crypto is no fad, says Finance Services Minister

By

May 25 2021
Share

Finance Services Minister Jane Hume said the government won’t stand in the way of crypto investors.

Speaking at the recent Stockbrokers and Financial Advisers Association annual conference, the minister emphasised the importance of allowing Australians to make their own investment decisions even if they involve volatile markets like cryptocurrencies.

“We have to back Australians to be sensible enough to judge for themselves whether to put their hard-earned money into higher-risk assets,” she said.

According to Ms Hume, “It’s about personal responsibility and common sense. And that extends to new asset classes like cryptocurrency. They are volatile. They are digital. And, dare I say, they are often poorly understood.”

Calling it an asset class that will grow in importance, Ms Hume said that “cryptocurrency is not a fad”.

“There are more than 4,000 cryptocurrencies in existence from relatively well-known assets like bitcoin and ethereum to more recent market entrants like dogecoin. They are volatile and high-risk assets and investors must be aware of these risks.”

“If you want to invest in dogecoin, I won’t stand in your way,” Ms Hume said.

“We have safety nets to catch people when they fall, but we will not stop them from having a crack at climbing the mountain.”

Ms Hume’s views align with those of Nigel Green, chief executive and founder of deVere Group.

Mr Green has said that “the so-called ‘cryptocrash’ is creating a lot of noise, but volatility in the cryptocurrency market should be treated in the same way as turbulence in any other market”.

“As with any type of investing, the investor’s best tool in order to sidestep potential risks and take advantage of opportunities that arise in times of market volatility is diversification,” he said.

“When used effectively and efficiently, volatility can be an extremely powerful investment strategy.”

“Cryptocurrency investors should ensure they are diversified across the principal digital tokens, for example ethereum, and as part of a wider investment portfolio of assets, sectors and regions.”

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

Most read

Age Pension increase prompts Australians to review their finances

Latest Podcast

Superannuation guarantee rate rises to 12 per cent as parental leave changes ...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest