Australians Are Diversifying Their Investments With Cryptocurrencies: Finder
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Australian Are Shifting Their Savings Into Cryptos: Finder
Australians are shifting their money from their savings account into different investment instruments, including cryptocurrencies.
According to Finder’s latest survey -- which interviewed 1,015 participants -- at least 29 percent of people have moved a portion of their savings out of banks due to low rates of interest. One in every 10 people told the website that they’ve transferred their savings to an investment account.
Many have opted to hedge their bets on stocks, with 7 percent moving their savings into micro-investing apps like Raiz.
Meanwhile, 5 percent said that they’ve chosen cryptocurrencies as their preferred investment vehicle.
The average person in Australia has $900 in digital assets and $260 in micro-investing applications.
Cryptocurrencies are swiftly gaining traction in the country. While a lot of people still avoid them due to volatility or lack of sufficient knowledge, many people -- which includes both Gen Z and boomers -- have found value in them.
Earlier this month, Finder came out with its cryptocurrency report 2021, which showed that one in six Australians owned cryptocurrencies. Also, one in three of the respondents said that Bitcoin could eventually overtake fiat currency.
Interestingly, the report also highlighted that most people got involved with cryptocurrencies to diversify their portfolios. Only 17% of all participants stated that their interest in the nascent asset class was sparked by the fear of missing out.
Many People Haven’t Moved Their Money Out of Accounts
At 0.25 percent, interest rates in Australia dropped to their lowest since 1982 in May. Additionally, three-year term deposits plummeted to their lowest in 40 years at 0.3 percent.
These record-low rates have made it difficult for people to benefit from their money in traditional accounts.
That said, some 56 percent of Australians have still not moved their money out of their savings account. While the reasons are unclear, lack of financial education could be partially responsible for their hesitancy.