Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey
Cryptocurrencies have seen wide adoption in the Australian continent, as reflected by a new survey.
Volatility Deterring Widespread Adoption Of Crypto
In a previous survey by The Finder of 1,004 participants in January, about 1 in 4 respondents revealed that they invest in or plan to buy cryptocurrencies.
The number has nearly doubled according to new findings, per reports by The Australian. Of the unknown number of surveyed respondents, about 1 in six Australians (about 17%) said they now own cryptocurrencies. A further 13% said they are interested in cryptocurrencies and would place a stake in the nascent industry as the months go by.
But most of those who participated in the new survey noted that volatility was a huge deterrent. About 43% said that the erratic price swings were a barrier for them to place a stake in virtual currencies. This reflects a 14% increase from the January survey.
Aside from volatility, the knowledge gap of what crypto does comes in at 19%, and limited utility comes in at 18%. Another barrier is that Australians do not know how to buy it, with 22% of respondents stating this fact.
50% of male participants pointed to volatility as a reason they cannot invest in the nascent sector compared to 37% female respondents.
Speaking on the results, Finder personal finance expert Kate Browne said that risk has continued to undermine the adoption of cryptocurrencies. However, she noted that this is a norm for any investment.
Browne noted that the greater involvement of women in the crypto space was a good sign. According to her, this is because more businesses accept BTC payment, and the use of Bitcoin automated teller machines (ATMs) and debit cards was further aiding the growth of the digital asset.
Crypto Is Overvalued
Bitcoin is still the top dog despite volatility with a 9% market share. However, it has lost 4% from the 13% market share it enjoyed in the Jan. survey. Ethereum follows with 8% while parody coin DOGE comes in third 5%. Finally, Bitcoin Cash takes up the rear with 4%. BTC -7.20% Bitcoin / USD BTCUSD $ 38,833.12
-$2,795.98-7.20% Volume 33.89 b Change -$2,795.98 Open $38,833.12 Circulating 18.94 m Market Cap 735.33 b 2 w SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 3 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum ETH -8.44% Ethereum / USD ETHUSD $ 2,857.08
-$241.14-8.44% Volume 17.9 b Change -$241.14 Open $2,857.08 Circulating 119.25 m Market Cap 340.7 b 2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 3 w The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 DOGE -7.90% Dogecoin / USD DOGEUSD $ 0.15
-$0.01-7.90% Volume 886.56 m Change -$0.01 Open $0.15 Circulating 132.67 b Market Cap 20.06 b 3 w Ray Dalio says, Bitcoin Is An “Alternative Money” While NFTs An Investment; May Also Become A Type of Money 3 w Dogecoin Foundation Working with Ethereum Co-Founder Vitalik for DOGE Staking Proposal 1 mon DOGE Sucking Liquidity from Crypto Market Again, Tesla to Accept Dogecoin Again For Merch BCH -7.65% Bitcoin Cash / USD BCHUSD $ 342.58
-$26.21-7.65% Volume 4.72 b Change -$26.21 Open $342.58 Circulating 18.96 m Market Cap 6.5 b 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card 1 mon Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe
The survey also noted that one-quarter (about 25%) felt that cryptocurrencies were overvalued. This number has grown 9% higher from the earlier survey. In addition, 32% said they would rather buy shares or place their money in savings than purchase crypto assets.
The crypto market has seen negative price action after concerns about BTC mining protocol were aired by Tesla boss Elon Musk. In addition, following China's ban of digital assets for payment, the crypto market lost 50% of its value and is still struggling. BTC trades at $35,600 on the 24hr chart.