Cryptocurrency is extremely popular in Australia, much more than in the USA and Britain. Studies show that more than four million Australians will invest in digital currencies in 2022, including a significant number of millennials. Data suggests that about 25% of Australian adults own cryptocurrency, a number that will inevitably arise in the future. Bitcoin occupies the top spot in the popularity of digital currencies, followed by Ethereum, which is owned by about 11% of its population.
But what explains this popularity? Why are people looking to invest in crypto? Here are some answers to this question.
A great alternative to investment property
A survey showed that a noticeable number of Australians across the country believe that cryptocurrencies are a great alternative to investment in property. Millennials were the most enthusiastic about investing in digital currencies rather than the market, followed by Gen Z and Gen X.
One of the reasons behind this development is the continuous rise of home prices, with dwelling values having jumped by almost 9.4% in 2020. The participants in the survey revealed that they would utilize their superannuation balance to invest in crypto, and 35% of millennials hope to save their retirement savings into buying crypto.
Increases in value
Many reliable studies and analysts predict optimistic growth for different cryptocurrencies in the future. For instance, Bitcoin, the most famous cryptocurrency in Australia owned by 21.1% of the population, saw a double value in 2021.
Experts believe that it will cross 100,000 USD$ (136,891.50 AUD$) in 2022 because of the people’s increased adoption and acceptance as legal tender by various countries worldwide. Ethereum, the second-most popular crypto in Australia after Bitcoin, is expected to rise more than 6,000 USD$ (8,213.49 AUD$) in 2022, primarily because of its upgrade project.
Friendly environment for cryptocurrencies
Compared to other countries globally, Australia has a friendly environment for cryptocurrencies, with the government not opposed to people investing or trading in them. The Australian Taxation Office and the Australian Securities and Investments Commission lay down the rules and regulations for dealing in digital currencies. Any crypto buying, selling, and trading are exempted from tax if it is a personal use asset (defined as any cryptocurrency you use to purchase items for personal consumption).
However, the government requires all citizens to maintain records of all transactions related to the acquiring, holding, and disposing of crypto assets. You should also keep records of the transactions for five years after completing a transaction with a particular currency.
Cryptocurrency is legal in Australia
Australia legalized cryptocurrency in 2017 and is defined as a digital asset. The government requires all crypto exchange platforms to register with the Australian Transaction Reports and Analysis Center (AUSTRAC). However, they are subject to the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Act of 2006.
So, these were some reasons why 25% of Australian adults own cryptocurrency, something you should consider doing if you live in the country and want to make significant profits. With the proper research, analysis, and suitable crypto exchange platform, you will find the inherent benefits of crypto trading.
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