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- 1 Young Aussies are more interested in crypto currency as compared to the older counterparts.
- 2 The next generation holds and trades more digital assets.
According to a study by Australian Securities Exchange, 46% of the next generation investors declared themselves as preferring stable returns. About 31% of them have invested in crypto. The next generation comprises investors aged 18 to 24.
Among the young investors 28% prefer the guaranteed returns, 46% prefer the stable and reliable returns, 16% accept moderate variability in returns, and only 10% accept higher variability with potential for higher returns.
Researchers said that the reason behind this is that younger people want to do something different from their parents. Since, they are more tech savvy and connected to social media, the next generation holds the maximum crypto but when it comes to wealth accumulators i.e. persons aged between 25-49 have maximum acceptance for higher variability with potential for higher returns.
Apart Crypto Risks Young Aussie Interested in Crypto Investment
The study highlighted the facts that 29% of the intending investors are planning to invest in crypto in the coming 12 months. Only 9% of investors bought or sold virtual currency in the past 12 months. Looking at the sex ratio nearly 69% of males have invested in digital assets while comparatively only 31% females invested in crypto.
Thinking of crypto investment, the next generation contributes 13%, wealth accumulators (25-49) contributes the most 69%, pre-retirees contribute 15%, and just 4% contribution from the retirees.
The report shows that despite cryptocurrency being included as an asset, it highlights that people have shown interest in digital currency besides its volatile nature. Centralized virtual currency exchanges seem to hamper the growth of the digital asset industry. The reason behind this is the severe rules and regulations implemented in countries.
Stricter Rules Prohibited Crypto Transactions
The U.S. Security Exchange Commission (SEC) has implemented the regulatory laws which are still not favored by the firms. Some of them, like Coinbase, are facing legal challenges. This shows the challenges faced by centralized exchanges.
In Australia central exchanges are also facing some challenges. The largest bank of Australia has taken a big step blocking the crypto transactions citing the reason as safety concern. Commonwealth Bank of Australia blocked the payments of certain digital asset exchanges as a part of anti scam measures and it will limit the virtual currency customer payments.
Certain amounts of payments are held for 24 hours and also monthly limitations for transfer have been set. This is all implemented in order to save the customer from the potential risk of getting scammed. Bank Westpac has also blocked virtual currency payments.
Comprehensively, the study by the ASX survey reveals that the younger generation is much more interested in digital assets besides the budding regulations. They do not fear the risk and thus hold the crypto for long.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
