Australians Are Now Buying Into Bitcoin and CryptoAssets But Not For The Reason You’re Thinking
All over the world, the use of cryptocurrency is gaining considerable momentum. Even though it's more popular in some countries than others, there's a general sense that there is some growth with regards to adoption, however, slow the growth process is. The countries where it’s more popular are floating crypto backed projects, looking for ways to solve problems through crypto and also trying to raise laws to support it in one way or the other. Some other countries have always seemed to be slower than others and one of such is Australia.
This, however, doesn’t mean that there’s no crypto presence in the country. In fact, there are reports which have it that crypto users in Australia, in 2018, had doubled in number even when there was a harsh bear market. When this survey was released in September, the general thought was that Australians were now catching on to the crypto industry and wanted to get in when the prices were low. This, it would seem, might not entirely be true.
Australia’s Gambling Problem
By most standards and reports, Australia is the country with the worst gambling problem in the world. Gambling in the country is so deep that each Australian adult tends to lose approximately $1,000. Sadly, this is very easy because gambling is so widespread that almost every club in the country has a slot machine and there are at least 100,000 poker machines in the country. Because of the amount of gambling loss, the Australian government put a lot of restrictions and regulations in place in the form of campaigns and laws on payment channels so the loss is a lot reduced. As part of the campaign, the government usually reminds gamblers that the gambling losses constantly being incurred do a lot of damage to their credit score.
This message had some success as even though most of the population might not be terribly affected by a bad credit score, there was still a significant drop in gambling activity among 25 – 35-year-olds, last year. Only 25% of them continued gambling as opposed to 2017’s 37%. This is where cryptocurrencies come in.
Use Of Digital Assets
Some of the most “endearing” features that digital assets have is that they are decentralized, cannot be tracked and completed transactions are completely irreversible. Because of this, Australians have now turned to cryptocurrency as a great way to continue gambling without hurting their credit score at all.
Today, there are quite a few gambling services online in Australia, which use Bitcoin on their platforms. The number of these online casinos is still increasing and the government seems to have realized that its population has turned to gamble with crypto. After a while, it was discovered that the statistics that showed a significant drop in gambling activity was incorrect because Australians really just turned to crypto use.
Now, the government is trying to get not just the crypto gaming platforms but also crypto exchanges, to show trading data so they can see where the cryptocurrency is going. Generally, it now seems that most crypto transactions in the country were funds being paid to these online gambling platforms.
The Government Might Now Be Powerless
The government really did achieve some success with all the restrictions and regulations that were put in place to curb gambling. However, the government might now be clueless about how to move forward because it has little or no power over the online activity.
This is because the country has an “Interactive Gambling Act of 2001” which primarily disallows platforms in the company from rendering these services online. This directly means that all the online gambling activity engaged in by Australians are done on foreign gambling websites. Even these foreign platforms are not mandated to disclose who paid what or even what channels the funds were received from.
All they are to declare are their total revenues. This is perfect for Australian gamblers because it has now stifled the government’s efforts to reduce gambling activity as the gamblers now use crypto instead of fiat.