The latest research by Protocol Theory and Easy Crypto has found that many Aussies are turning to digital investments in pursuit of financial freedom. The survey has revealed that Australians are going for crypto as an alternative to real estate which has become a tad bit too expensive for the average investor. If you don’t understand what we are saying, then you haven't tried buying a house in an Australian city in the past five years. For example, the median house price in Mildura today is $445k compared to $350k in 2021. That’s a 27% increase in just four years. Let's not even talk about Sydney and Melbourne.
This doesn't mean that real estate is becoming less valuable than it has been over time. In fact, the research says that 75% of investors acknowledge that the industry has high returns. The problem is the high entry level bar that has been set, which is making it quite tough for new investors. On the other side, digital assets like Bitcoin have high reception rates in the country. The simple explanation is this: if you do not have the full amount, you can just buy a fraction of one Bitcoin, and with time, you can buy more. This is such a flex even for small investors. If not that, there are many more altcoins with lower prices and good investment opportunities, like Ethereum, Solana, Dogecoin, etc.
Actually, 42% of the respondents from the survey said that crypto gave them hope for the future, while a further 40% believe that crypto is the road to financial freedom. Additionally, a further 40% believe that digital assets deliver high returns despite the high volatility. Once they buy, they remain with the tokens regardless of what happens in the market, stamping the fact that investing in crypto in 2024 is a mainstream move.
Accessibility of crypto
According to a piece by The Conversation, many Australians believe that the economy is not going in the right direction and say that their finances have become worse in the last few years. This has called for diversification of their investments. As a result, many are turning towards crypto. Since crypto entry is low, at least 64% of investors say that they are able to invest small amounts of their money on the same compared to only 22% who are confident in investing in real estate.
Among the most appealing qualities of crypto is the minimum investment required to start. You just need a few bucks and a trusted crypto exchange, and you are good to go. On the contrary, for you to invest in real estate, you are sure that you will need at least a few tens of thousands in order to make a deposit. If you look at the two, crypto definitely wins.
Crypto has proven to be an investment suitable for all generations, especially for the Millennials and Gen Zs. In fact, a piece by The Straits Times shows that the adoption of crypto by Gen Zs has risen from 38% in 2021 to 47% in 2024. If that's not enough, another research study said that Gen Zs and millennials are now owning crypto as real estate. Well, this makes a lot of sense since all you need to invest in crypto is just an internet connection, something that the current generation is thriving at.
Many Aussie investors believe that what stands between them and financial freedom is the government and banks. Is this true or they are just saying things? According to them, the decentralisation of crypto provides an environment that is more in tune with financial freedom and equity than real estate or any other traditional investment does. You see, crypto does not require third party involvements to transact and is not regulated by any central bank. According to the study done by Protocol Theory, 45% of Australian investors believe that crypto is the beam that brings equality, most of them being 39 years old or younger. Only 38% believe that investment in property is the real equaliser.
Again, come to think about it, the crypto industry is still relatively young and is being characterised by many innovations. When investing in the industry, you are investing in technological growth. So far, the crypto market has shown that it has the capacity to become one of the biggest industries in the global market. For example, in September 2024, the global market for crypto is trading at a market cap of over $2 trillion. In 2020, the market cap was only at $750 billion. These statistics mean that if you invest in the industry, there is a good chance that your investments will grow with the technology.
In conclusion
The Australian real estate market has been holding up well in the past, but it is becoming tough for investors to join. Therefore, many of them are looking for alternative ways to build their investment portfolio, and crypto looks like a good option. As the days go by, we expect to see even more Aussies joining in the crypto caravan as it surely is becoming more mainstream.