Cryptocurrency is increasingly being seen by older Australians as a legitimate investment, new data from one of the country’s biggest exchanges has shown.
Cryptocurrency is increasingly being seen by older Australians as a legitimate investment, new data from one of the country's biggest exchanges has shown.
BTC Markets today released its annual Investor Report, revealing that one in four of today's crypto investors is aged over 44.
Over the past financial year, the exchange recorded a 15 per cent growth in investors aged over 60, marking the biggest increase of any age group after 18- to 24-year-olds.
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BTC Markets noted that in general, older Australians are more likely to have larger initial deposits, bigger portfolios and higher average investments.
Unlike younger Australians, older investors trade half as frequently as their millennial counterparts.
BTC Markets CEO Caroline Bowler said the data was increasingly showing that cryptocurrency is no longer the domain of tech-focused young people.
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"Australians aged over 60 are seriously developing investment strategies for their post-work years as they approach retirement," Ms Bowler said.
"A low interest rate environment is a key factor behind them seeking investment opportunities in alternative assets like cryptocurrency.
"These Baby Boomers are often at a time in their lives when they have accumulated significant wealth and assets and have many years of experience investing in financial markets.
"They are not worried about allocating a small percentage of their portfolios to cryptocurrencies."
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In the past financial year, BTC Markets also saw a dramatic upswing in the number of female investors, recording a 172 per cent year-on-year growth in new users.
In FY20-21, female investors traded twice daily on average, compared to five times for males, suggesting a structured trading strategy with a smaller range of more focused positions.
Female investors also deposited larger amounts at the outset ($2381), compared to their male peers ($2060).
"More women trading cryptocurrency dispels misconceptions around cryptocurrency investors being risk lovers," Ms Bowler said.
"This is because behavioural finance studies have found women to be more risk-averse in their investment decisions than men.
"It also shows a calculated appetite for the volatility that is still a feature of this asset class."
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Source: 9News https://www.9news.com.au/technology/cryptocurrency-news-baby-boomers-buy-bitcoin-as-older-aussies-jump-on-trend/4245b962-e178-4b09-9f63-14ddbe3f1191