Australian baby boomers are one of the largest groups of cryptocurrency investors in Australia. The rate of adoption of these assets continues to rise in the country, but the country faces the challenge of regulation.
Seniors lead the way
Australian cryptocurrency exchange BTC Markets reported in its annual report that the number of seniors using the platform has skyrocketed in the last fiscal year. The company actually recorded a 15 percent increase in the number of investors over the age of 65.
In a Sept. 15 interview with Bloomberg, exchange CEO Caroline Bowler said the growth in baby boomers aged 57 to 75 was second only to that of 18 to 24-year-olds. Baby boomers now make up 5 percent of the exchange’s 325,000 customers.
These mature investors deposit the most money on the platform, especially those in early retirement. Their average initial deposit is the highest, at around $3,200, for an average crypto portfolio size of $3,700.
According to Bowler, low interest rates could explain this rush of boomers into cryptocurrencies:
“These boomers are often at a point in their lives where they have accumulated significant wealth and assets and have many years of experience investing in the financial markets. They are not worried about allocating a small percentage of their portfolio to cryptocurrencies.”
Australia: what future for cryptos?
BTC Markets conducted a survey of 1,800 customers to find out their motivations for investing in cryptocurrencies. Among them, 34% see it as a way to retire early, 28% are looking to diversify their portfolio, while 23% are just afraid of missing out on the trend (fear of missing out).
Bitcoin and cryptocurrencies have been steadily gaining traction in Australia. An August 2021 report from Finder, for example, found that 17% of Australians own cryptocurrencies, totaling $8 billion. 9% of these investors have chosen to gain exposure to Bitcoin (BTC).
However, data from the exchange also indicates that the lack of local regulation is a problem for investors. This is because financial advisors are not allowed to provide them with advice on cryptocurrencies. According to Bowler, for 28 percent of Australians, this lack of regulation is one of the biggest challenges they face.
Australia is one of those countries leading the cryptocurrency revolution. It is already possible to buy Bitcoin there like a letter in the post. It remains to be seen whether the authorities will ever bother to regulate this sector to reduce the risks associated with random investments.