Summary

More than 40% of young Australians, particularly from Generation Z and Millennials, express regret over not investing in cryptocurrency ten years ago, viewing it as one of the most significant missed chances of the last decade.

A survey by Swyftx, which included 3,009 participants, indicated that nearly half of those under 35 feel they have missed out on the crypto boom, overshadowing regrets from not investing in real estate or technology stocks like Apple and Amazon.

Market Insight

The fear of missing out (FOMO) is accentuated by substantial purchases of Bitcoin (BTC) and Ether (ETH) by major entities, such as corporations and pension funds, according to the report.

Proportions of regret among young Australians In a study of 3,009 participants, it was found that 40% of individuals under 35 expressed sadness about not investing in cryptocurrency a decade ago. Source: Swyftx

In 2015, Bitcoin’s price fluctuated between $172 and $465 at the end of a bear market but has since surged to $107,505.

Alternative Investment

A spokesperson from Swyftx remarked that the current real estate market feels prohibitive to younger individuals, who now view cryptocurrency as a possible route to homeownership. In Australia, property prices are ranked as the sixth highest globally.

“Such housing unaffordability presents a challenge that previous generations did not encounter, and crypto is perceived as a potential solution.”

Furthermore, they noted that younger investors are keen to include high-volatility assets in their portfolios, demonstrating substantial knowledge of this asset class.

Approximately 80% of Australians under the age of 50 express disappointment in their investment choices over the past decade.

Trends in Investments

The preference of young investors is shifting significantly towards cryptocurrencies over traditional stocks. Swyftx’s CEO, Jason Titman, remarked that predictions indicate a growing inclination towards Bitcoin as a comparable investment to stocks within the next two years, contingent on government regulations and investor protections.

A spokesperson elaborated on the impact of regulatory frameworks on potential investments, noting:

“Regulatory clarity has already shown positive effects in the US, as seen with major banks like Morgan Stanley entering the market.”

Australia’s government, led by the Labor Party, suggested a new framework for regulating cryptocurrency exchanges within existing financial laws back in March.

Gen Z’s Crypto Utilization

Generation Z, identified as individuals born between 1996 and 2010 (ages 29 to 15), are increasingly finding additional income through crypto, with an average profit of $9,958 reported among 82% of investors who have been successful.

Notably, 78% of Australian crypto users claimed to have made a profit over the past year, driven by new record highs in the market. Swyftx’s spokesperson commented on the potential of this generation in terms of investment longevity and their resilience to annual market volatility.

For further reading: Cliff bought 2 homes with Bitcoin mortgages: Clever… or insane?