Invest
Young Aussies turn to crypto to fund their way into the property market
As property prices swell, young Aussies are becoming increasingly discouraged by traditional investment options, with one in five prepared to consider crypto as a way into the market.
Young Aussies turn to crypto to fund their way into the property market
As property prices swell, young Aussies are becoming increasingly discouraged by traditional investment options, with one in five prepared to consider crypto as a way into the market.
As many as 22 per cent of Australians believe investing in cryptocurrencies could be the answer to saving for a mortgage deposit, with just as many admitting their interest in crypto peaked as the value of traditional savings declined, new research has revealed.
But, not only are Aussies looking at crypto as a way into the property market, some are even considering abandoning the cultural norm to explore other options to grow their wealth.
Research based on a survey by Kraken has revealed a decline in traditional investment options among young Aussies, with 39 per cent of Millennials revealing they have considered crypto as a good alternative to buying an investment property. This number is slightly lower among older Aussies, with 31 per cent of Gen Z and 24 per cent of Gen X showing the same enthusiasm.
According to Kraken’s managing director, Jonathon Miller, while Aussies do lag behind the US in terms of adoption, interest in crypto is increasing.
“Australians still maintain some conservative attitudes towards investment. Property has been a cultural norm and high on the wishlist for most investors, but as affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth,” said Mr Miller.
“It’s these younger Australians who are changing the dynamic, and with more education, we expect the broader market to come around to the idea of investing in cryptocurrency.”
Kraken’s findings also revealed that reasons for shying away from crypto are varied, with 47 per cent of Baby Boomers steering clear because of the asset’s perceived volatility. As for those 18-35, 39 per cent said they don’t have the funds to invest, while 29 per cent said they didn’t know how.
As such, Mr Miller pointed to a need to educate Aussies and help them discover cryptocurrency.
“We’re confident that as more investors look to diversify their portfolios and seek investment opportunities outside of the traditional offerings, we’ll see cryptocurrency come into its own in APAC,” said Mr Miller.
Crypto’s rise in popularity has also garnered the attention of the Australian Taxation Office (ATO), which last month announced that it would be sending a letter to 300,000 taxpayers with cryptocurrency assets informing them of their tax obligations, with an additional 100,000 Aussies set to receive a notice to review their previously lodged returns.
The ATO said at the time that there is a misconception that cryptocurrency gains are tax-free or only taxable when the holdings are cashed back into Australian dollars.
“We are alarmed that some taxpayers think that the anonymity of cryptocurrencies provides a licence to ignore their tax obligations,” Assistant Commissioner Tim Loh said.
“While it appears that cryptocurrency operates in an anonymous digital world, we closely track where it interacts with the real world through data from banks, financial institutions and cryptocurrency online exchanges to follow the money back to the taxpayer.”
Last year, the ATO directly contacted around 100,000 taxpayers who had traded in cryptocurrency and prompted 140,000 taxpayers at lodgement.
About the author
About the author
Cryptocurrency
Cryptocurrency losses mount as hacks and scams continue to plague the industry
The cryptocurrency industry has lost over $400 million to hacks in 2024 so far, with the decentralized finance (DeFi) sector being the most vulnerable, according to research by experts at Smart ...Read more
Cryptocurrency
Institutional investors bolster cryptocurrency allocations amidst growing confidence
A recent study by London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund, has revealed a significant shift in the mindset of institutional investors and wealth ...Read more
Cryptocurrency
Institutional investors set sights on expanding crypto portfolios in the coming year
New research from London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund manager, indicates a significant positive shift in institutional investors' attitudes ...Read more
Cryptocurrency
BingX reports significant growth and innovation in 2023 amidst industry challenges
BingX, a prominent crypto exchange, has disclosed notable achievements in 2023, amidst a backdrop of global economic uncertainty and sector-specific turbulence. The company has managed to double its ...Read more
Cryptocurrency
Altcoin interest skyrockets as Bitcoin and Ethereum boost market optimism, study finds
Interest in altcoins and other digital assets is on the rise, propelled by growing confidence in the performance of Bitcoin and Ethereum, according to a new study conducted by Nickel Digital Asset ...Read more
Cryptocurrency
Global survey reveals bullish outlook on next Bitcoin halving among institutional investors
A new global survey conducted by Nickel Digital Asset Management, a premier digital assets hedge fund manager based in London, has highlighted a growing positivity among institutional investors and ...Read more
Cryptocurrency
Nickel Digital Asset Management reports strong 2023 performance, surpassing key financial indices
London's Nickel Digital Asset Management, a leading digital assets hedge fund, celebrated a stellar year with returns that significantly outpaced both hedge fund indices as well as traditional ...Read more
Cryptocurrency
Time to expand your crypto horizons: beyond Bitcoin for better returns
In an intriguing twist for cryptocurrency investors, it's suggested that the spotlight may be shifting from the long-time favourite, Bitcoin, to a broader spectrum of digital assets. Read more
Cryptocurrency
Cryptocurrency losses mount as hacks and scams continue to plague the industry
The cryptocurrency industry has lost over $400 million to hacks in 2024 so far, with the decentralized finance (DeFi) sector being the most vulnerable, according to research by experts at Smart ...Read more
Cryptocurrency
Institutional investors bolster cryptocurrency allocations amidst growing confidence
A recent study by London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund, has revealed a significant shift in the mindset of institutional investors and wealth ...Read more
Cryptocurrency
Institutional investors set sights on expanding crypto portfolios in the coming year
New research from London-based Nickel Digital Asset Management, a leading regulated digital assets hedge fund manager, indicates a significant positive shift in institutional investors' attitudes ...Read more
Cryptocurrency
BingX reports significant growth and innovation in 2023 amidst industry challenges
BingX, a prominent crypto exchange, has disclosed notable achievements in 2023, amidst a backdrop of global economic uncertainty and sector-specific turbulence. The company has managed to double its ...Read more
Cryptocurrency
Altcoin interest skyrockets as Bitcoin and Ethereum boost market optimism, study finds
Interest in altcoins and other digital assets is on the rise, propelled by growing confidence in the performance of Bitcoin and Ethereum, according to a new study conducted by Nickel Digital Asset ...Read more
Cryptocurrency
Global survey reveals bullish outlook on next Bitcoin halving among institutional investors
A new global survey conducted by Nickel Digital Asset Management, a premier digital assets hedge fund manager based in London, has highlighted a growing positivity among institutional investors and ...Read more
Cryptocurrency
Nickel Digital Asset Management reports strong 2023 performance, surpassing key financial indices
London's Nickel Digital Asset Management, a leading digital assets hedge fund, celebrated a stellar year with returns that significantly outpaced both hedge fund indices as well as traditional ...Read more
Cryptocurrency
Time to expand your crypto horizons: beyond Bitcoin for better returns
In an intriguing twist for cryptocurrency investors, it's suggested that the spotlight may be shifting from the long-time favourite, Bitcoin, to a broader spectrum of digital assets. Read more