Bitcoin is on the Rise in Australia – Are We on the Brink of Mass Adoption?
Bitcoin has exploded in popularity in the country since the beginning of the year, and it’s estimated that around 1 in 6 Australians now own some form of cryptocurrency. This should continue growing over the next few years as younger investors seem to gravitate towards cryptocurrencies even more. With so many Australians invested in the currency, some are beginning to talk about mass adoption, but are we there yet?
Some Investors are Still Indecisive
While bitcoin and crypto in general seem to be getting a lot of attention from investors in the country, there is a strong core of traditionalists who are thinking twice about investing. One of their growing concerns is volatility, and this year’s wild movements in the crypto markets has done nothing to reassure them.
Volatility has been one of the core issues blocking mass adoption, and 43% of all Australians saw it as a deterrent from investing in the cryptocurrency.
What is Stopping Mass Adoption?
One of the factors that are stopping mass adoption is the lack of reputable exchanges. Many investors buy bitcoin (BTC) at Coinspot Australia which is the most trusted cryptocurrency exchange operating since 2013. However, very few are as reputable and offer this level of transparency.
Another area where lots of work has to be done is education. Lack of understanding of cryptocurrencies is one of the main reasons so many people are still scared of investing, and more will need to be done to prevent uninformed investors from inflating the markets.
Australians are Divided on the Future of Crypto
Australians seem to be very divided about the future of crypto with some seeing it as the future of money and others still waiting for the bubble to burst. One study found that 1 in 4 Australians would be glad to pay for everyday purchases using crypto. On the other hand, a quarter of investors stated that they thought crypto assets were overvalued and one of the reasons they refused to invest.
What is Crypto’s Future Potential in the Country?
Still, there are indications that the future could be bright for Bitcoin in the country. More regulation means that there will be more products being offered, and that crypto will be more accessible to less savvy investors. A bitcoin ETF would certainly help and give more access to institutional investors. It’s also possible that volatility will taper off as stronger, more educated hands enter the market.
With that being said, Bitcoin still has a long way to go before becoming a legitimate currency. It is still an interesting asset and one most advisers agree everyone should have some sort of exposure to. For this reason, we can expect Bitcoin to always have some sort of baseline support in the country.
It’s impossible to tell what the future holds for Bitcoin and crypto in the country. But, with the solid and growing base that it’s garnered, the phenomenon is not likely to fizzle out anytime soon.