CEO of Independent Reserve Adrian Przelozny told Cointelegraph that he expects the trend to continue as crypto matures and becomes less volatile.
The 2021 Independent Reserveâ€™s Cryptocurrency Index (IRCI) survey of more than 2,000 people found that the percentage of Australians surveyed who own or have owned crypto has reached 28.8%, up from 18.4% in 2020.
The results suggest that growth in the sector is being driven by the positive experience of those who own crypto, with 89% of those surveyed saying they have made money or broken even, up from 78% in 2020.
Independent Reserve CEO Adrian Przelozny told Cointelegraph that these results didnâ€™t come as a surprise to him, due to an environment in which it has become â€œvery difficult to get returns on investments.â€
He stated that â€œcryptocurrencies have easily outperformed any other assets over the last 12 months,â€ before adding:
â€œI think it’s quite natural that more and more people get interested in an asset class that’s clearly outperforming the rest of the market.â€
In October, Cointelegraph reported that Bitcoin (BTC) is the official best-performing asset class of 2021.
Przelozny said that he expects the trend to continue as crypto matures and becomes less volatile. He said that the â€œbiggest allyâ€ of cryptocurrency is that â€œthe longer it’s around, the more accepted it becomes.â€
â€œWith time, I think you’ll see volatility and the perceived risk of this investment reduce.â€
28.6% of those surveyed by the IRCI who donâ€™t currently own crypto said they would invest if there were better consumer protections in place. Another 26.6% said theyâ€™d buy crypto if industry regulation was improved.
Regulation is needed for continued growth
Przelozny said that â€œthe sector still desperately needs regulation to catch up and provide greater security for both investors and cryptocurrency businesses.â€
â€œI do think that once regulation comes on board, we’ll see a whole new class of investors into this space. And I think that’s what we’ve seen in other jurisdictions, like over in Singapore.â€
Przelozny told Cointelegraph that he anticipates that older Aussies over 65 will make up the next big wave of investors as these regulatory issues are addressed.
â€œThey’re looking for consumer protections from the government before they’re willing to take the plunge and enter the cryptocurrency market.â€
Unsurprisingly, the 24 to 34-year-old age group was the most trusting of crypto with 27.6% saying they bought in to get rich, while disbelievers in the system are most likely to be found in the over 65 age group.
Related: Australian women owning crypto has doubled in 2021: Survey
According to the IRCI, Bitcoin remains the most well-known and popular cryptocurrency, with 89.1% of Australians surveyed saying theyâ€™ve heard of it and 21.1% actually owning Bitcoin.Â The second most popular crypto asset is Ethereum, at 11% reported ownership, up from just 5% in 2020.
The IRCI is an annual cross-sectional survey of more than 2,000 Australians conducted by PureProfile. Independent Reserve says its sample was reflective of the countryâ€™s gender, age, and geographic distribution.