Australian Crypto Ownership Drops Following Market Fluctuations in 2022: Research
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New research shows fewer Australians are embracing cryptocurrencies (crypto) following the plunges in their value in 2022. However, the sharp fluctuations in prices have not deterred a proportion of the population from getting in deeper into crypto.
According to a new report by the digital currency exchange Independent Reserve, the Independent Reserve Cryptocurrency Index (IRCI), which measures the level of awareness, trust, confidence and adoption of digital currencies among the Australian population, dipped from 54 to 45 in 2022.
The drop reflected lower ownership rates, fewer people making profits, and a decline in confidence in the medium term as the prices of Bitcoin and other digital currencies fell dramatically from their 2021 highs.
Specifically, Australians’ overall crypto ownership dropped from 28.8 percent in 2021 to 25.6 percent in 2022.
The largest fall was recorded in the 18 to 24-year-old age group, with ownership plummeting from 55.7 percent to 33.3 percent.
However, contradicting the overall trend, the percentage of Australians investing $500 (US$333) or more per month in crypto rose from 10.3 percent in 2021 to 17.3 percent in 2022.
Similar growth was also witnessed in those investing between $1 and $100 a month, with the proportion of participants jumping from 11.6 percent to 26.5 percent.
This suggested that some Australians saw the decline in crypto’s value as an opportunity and decided to invest more to take advantage of the lower prices.
“Our 2022 survey results reflect the period of global market uncertainty we’re currently experiencing,” Independent Reserve CEO Adrian Przelozny said.
“Despite this volatility, the 2022 IRCI data clearly demonstrates that Australians’ interest and investment in crypto remains high and continues to gain momentum.”
Older Australians Take up Interest in Crypto
While the 18 to 24-year-old group was behind the drop in overall crypto ownership, other age groups have shown increased interest in this type of digital asset.
Notably, ownership among respondents aged 35 to 44 reached 46 percent in 2022, up from 38 percent in the previous year.
For 45 to 54-year-olds, ownership grew from 25.3 percent to 27 percent.
In comparison, 11.4 percent of 55 to 64-year-olds claimed to hold crypto (up 1.7 percent), while the figure for the 65-plus age group was 5.1 percent (up 1.2 percent).
Crypto Becomes More Popular Among Australians
The report indicated that general cryptocurrency awareness grew slightly to 92 percent in 2022, with Bitcoin continuing to be the most widely known digital currency (91 percent), followed by Ethereum (43 percent) and Dogecoin (36 percent).
Meanwhile, family and friends remained the most influential factor affecting crypto adoption, with 49.2 percent of the respondents citing it as the reason for their investments, followed by media coverage and portfolio diversification.
Despite the growth in the population’s awareness, Przelozny said regulation was struggling to keep pace and adapt to the changes in the crypto sector, which reflected in the attitude towards digital currencies of many Australians.
The survey found that over a third of the respondents considered a lack of regulation and consumer protection the main reason preventing them from adopting crypto, up from 24.8 percent in 2021.
“As more Australians invest in digital assets, it’s critical that we have a robust and competitive regulatory, tax and policy framework that deals with these assets,” the report said.
Tens of Thousands of Australians Impacted in FTX’s Collapse
The report came following the collapse of the popular crypto exchange FTX, which put 30,000 Australian investors in a precarious situation.
The affected FTX customers have been seeking to recover part of their losses, with many of them now facing significant financial difficulty.
The Australian Financial Review reported that KordaMentha, the administrator of FTX Australia’s liquidation process, received hundreds of emails from affected customers across the country asking for their funds back, with losses ranging from $40,000 to $1 million.
The administrators have found $3 million in an FTX Australia account and another $39 million in an account related to FTX Express, but they warned significant sums were still outstanding.
KordaMentha said the firm had started to respond to the inquiries from thousands of FTX customers and creditors it received and advised concerned parties to remain patient due to the complex administration process.
The first virtual meeting of FTX creditors will be held on Dec. 1 at 11 a.m. AEDT, where KordaMentha would provide an update on the administration process.
Creditors will also have to decide whether to appoint a committee of inspection at the meeting.
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Alfred Bui is an Australian reporter based in Melbourne and focuses on local and business news. He is a former small business owner and has two master’s degrees in business and business law. Contact him at alfred.bui@epochtimes.com.au.
