New survey shows Australia’s highest crypto adoption rate, but will the asset ever be ‘as safe as houses’?

New research by global consumer insights company Protocol Theory – Swapping Lawns for Ledgers: A snapshot of Australia’s next generation of crypto investors – has revealed that nearly 50% of Australians have bought or are considering buying crypto in the next year, as many seek more accessible investment alternatives to home ownership in their quest to build financial freedom.

Undertaken in partnership with cryptocurrency exchange Easy Crypto, who currently operate in Australia, New Zealand and South Africa, the research of 1,000 respondents from the general adult population set out to profile the next wave of crypto adopters. Easy Crypto is helping Australians make crypto investing simpler, this month launching its new wallet as an efficient way to buy, manage and store crypto for beginners.

The survey revealed some of the highest adoption figures yet, with almost 1 in 3 Australian adults reporting that they either currently own, have previously owned, or are actively considering buying crypto for the first time. Compared to the estimated global crypto adoption rate of just 6.8%, this puts Australia firmly in the ‘Early Adopter’ category of the crypto adoption continuum.

Australia’s rapid adoption of crypto is fueled by Aussies’ belief in the unique benefits that it provides. For example, despite 68% of Australian investors believing that the future is going to be more difficult than today, almost half (42%) of these same investors feel that crypto gives them hope for the future. Meanwhile, 40% of Australian investors believe that crypto helps to facilitate their financial freedom.

Unsurprisingly, 75% of investors believe real estate has high returns; but 40% also agree crypto delivers high returns too. 

Findings also include:

• Rising discontent with the ‘status quo’: 1 in 3 investors report that crypto’s appeal includes banks and other companies profiting less; with many believing that governments and banks are the top two things standing between them and financial freedom. Many Australian investors feel that crypto enables greater equality for all, with up to 45% of Aussie investors aged 39 or younger agreeing with this statement compared to 38% for investment in property.
• Crypto is a more accessible investment: 64% said they could afford to invest small amounts of money into crypto compared to just 22% of Australian respondents who viewed real estate the same way especially given the persistently high cost of property.

Overall, the multi-generation appeal of crypto is clear. Here are three key trends the Easy Crypto study showed. 

Crypto investing is a quicker and easier pathway to investing

Australians are more confident in the future of this asset class than they ever have been before. With 90% concerned at the state of the economy, investors are open to crypto as a pathway to their financial freedom that is more readily accessible; with 64% saying they could afford to invest small amounts of money into crypto compared to just 22% of Australian respondents could confidently get into the real estate.

What’s more, once they buy, they stay. More than 50% stay invested in crypto despite market volatility, consolidating the trend that in 2024, crypto has now become a mainstream investment option.

Crypto is a viable alternative to the housing market

More investors are attracted to crypto largely because you can invest small amounts and invest faster.

Crypto has a wider appeal for younger generations, especially those Millennials to Gen Zs, as it is perceived as a pathway to financial freedom and more accessible than buying a house in 2024. It takes eight years on average to save for that first property deposit and by contrast, investing in crypto is easier with eight years equal to two crypto cycles.

“For many Australians, the dream of home ownership is at odds with their current economic reality. At the same time, crypto is seen as more mainstream – including by institutional investors – and our mission is to leave no one behind. The main goal of our research was to understand the next wave of crypto adopters and what we need to do to support them to make informed and smarter investment decisions,” explained Janine Grainger (pictured), Co-Founder and CEO of Easy Crypto.

Grainger added, “They are swapping lawns for ledgers. With the bricks and mortar becoming progressively challenging for younger folk – unless they have intergenerational wealth – and GenXers and Boomers looking to supercharge their retirement in an increasingly challenging economic environment, crypto has undeniable appeal.”

In line with this, almost 70 percent of those Australians surveyed believed their future is going to be more difficult than today and 23 percent saw cryptocurrency as an asset that “empowers full control of their economic future.”

Crypto is still facing significant barriers for wider adoption

Investors want the industry to ‘level up’ in terms of providing a safe, secure investment environment; and one that is as safe as the traditional housing market for investors.

Education will help make crypto even more appealing, with the survey revealing 70% of Australians saying much of the information available is difficult to understand.

“While the consensus around confusion is disappointing, the findings are a clear call for the crypto industry to do a lot better when it comes to engaging with both existing and future investors,” said Grainger, who believes that the trifecta that will drive adoption is investor motivation, opportunity and having a voice of trust.

“There is clear intent to invest and uptake is growing. What’s more, investors are disillusioned with current solutions and looking for alternatives. For them to close the value-action gap between identifying crypto as a way to create a better future for themselves – and acting on this belief – we need to ensure a much easier access to start investing in crypto,” believes Grainger.

Now is the time for products that address the biggest barriers to crypto adoption – volatility and complexity. These include user-friendly wallets that are suited to ‘beginners’. In addition, it’s time to prioritise ‘crypto for humans’, focusing our effort on a user-centred approach that simplifies all aspects of the crypto experience to accelerate adoption.

“Only by addressing these critical areas can the industry achieve the ‘trifecta’ needed for action,” concluded the Easy Crypto CEO.