According to a newly published survey, around one million Australians will buy cryptocurrency for the first time within the next 12 months, bringing total cryptocurrency ownership in the country to over five million.
The findings come from Australian cryptocurrency exchange Swyftx’s second annual Australian Cryptocurrency Survey, conducted by research firm YouGov.
The survey asked questions of 2,609 Australians over the age of 18 in early July, with 548 of the survey sample identified as current cryptocurrency holders.
The report claims that although the current “Crypto Winter” recorded around $2 trillion in assets wiped out of the digital asset market throughout last year, Australian crypto ownership grew by 4% year-on-year, reaching 21% in 2022.
According to the report, this number is expected to add a million new crypto owners by 2023, while at least a quarter of Australians are planning to buy cryptocurrency in the next 12 months, with Millennials, GenZers, Australian parents and full-time workers more likely to buy.
This finding is generally consistent with recent data from a Bitcoin processor suggesting that the crypto winter will not stifle widespread adoption and comments from cryptocurrency exchange CoinJar, head of content Luke Ryan claims that sports sponsorship is helping to legalise cryptocurrencies in Australia.
Commenting on the optimistic metrics on cryptocurrency adoption and ownership, Swyftx’s Head of Strategic Partnerships Tommy Honan said:
“On the basis of the current growth trajectory in the use of digital assets, we expect half of adults under the age of 50 in Australia to own or already own cryptocurrencies within the next one to two years.”
However, Honan said there are also a lot of variables that make it “terribly difficult” to forecast cryptocurrency adoption, adding:
“The expectation is that we’ll see crypto regulated next year and all other things being equal, you’d expect that to trigger growth in adoption, but that’s not necessarily the case.”
Honan said acceptance rates could slow over the next 12 months before rebounding as market conditions improve. He noted: “The Bear market has knocked down confidence […] Confidence can take the ladder up and down, so we’ll have to wait and see how quickly the market stabilizes.”
According to the survey, the lack of sensible regulations is the biggest deterrent to investing in cryptocurrencies for those who haven’t already, along with a lack of knowledge about how cryptocurrencies work and the overall volatility of the market.
This finding is reinforced by recent comments from former chief risk officer at Credit Suisse CK Zheng, who believes that the next cryptocurrency bull run will be the result of “regulatory clarity” in the United States.
In a comment to Swyftx’s co-CEO, Ryan Parsons said the report showed a clear demand among Australians for buying and using cryptocurrencies, but that the “critical factor” for hesitation to participate in cryptocurrencies is still regulated.
“The rules for cryptocurrencies are gaining increasing interest and it will continue to increase if the adoption of digital assets increases at the current pace. As this report shows, australians’ clear need for buying and using cryptocurrencies, it is imperative that we meet this need responsibly. “