A report has revealed why cryptocurrency purchases are soaring among a particular generation of Australians, fuelling a bold prediction.
Cryptocurrency experts believe it will surpass traditional finance in Australia as early as 2029 after a new report revealed the country had accumulated $7bn worth of digital coins.
Comparison site Finder has released its annual Cryptocurrency Report with some significant revelations, including that 31 per cent of Gen Z Australians (born after 1997) own some form of crypto.
Cryptocurrencies are virtual or digital forms of money that take on the form of tokens or “coins” using cryptography, making it difficult to be counterfeited.
Australians have amassed $7bn worth of cryptocurrency, with the average investor owning $2078 in assets.
Overall, 17 per cent of Australians own cryptocurrency, while a further 13 per cent said they intended to buy it within the next year.
A nationally representative Finder survey also found 56 per cent of Australians believed tech billionaire Elon Musk invented Bitcoin.
A graph shows the price of Bitcoin fluctuating in comparison to tweets by tech entrepreneur Elon Musk. Picture: Finder
Bitcoin remains the most popular cryptocurrency, owned by 9 per cent of Australian crypto investors, followed by Ethereum (8 per cent), Dogecoin (5 per cent) and Bitcoin Cash (4 per cent).
The biggest revelation out of Finder’s report is that almost 31 per cent of Gen Z Australians (aged 24 and under) own cryptocurrency, and that figure has more than doubled since January.
But ownership of digital coins has dropped in other generations.
Finder’s cryptocurrency expert James Edwards said Gen Z’s behaviour was a sign traditional finance was being phased out in a bold prediction for its future.
“Many Aussies are now much more clear on the benefits cryptocurrencies offer, such as Bitcoin being a hedge against fiat currency and inflation, plus the ability to earn interest on assets through things like stablecoins and decentralised finance on Ethereum,” he said.
“If the pace of education continues to grow, combined with easier access to cryptocurrencies, we should expect to see it as a dominant financial industry by the end of the decade, especially among younger generations who have never had meaningful access to traditional finance.”
Finder founder Fred Schebesta also predicted digital coins were about to explode.
“As the technology develops and there are easier ways to access it – like in the Finder app where you can buy Bitcoin and Ethereum in a few clicks – I believe the growth in cryptocurrency will explode,” he said.
The report emphasised social media will underpin the growth of cryptocurrencies.