“It’s a deflationary asset as only 21 million bitcoins are mined at a time, as opposed to the US government’s pumping out cash in response to COVID to keep its economy alive.”
Independent cryptocurrency exchange Independent Reserve announced that new accounts were up 150 percent in January from December. The fastest growth was achieved by family offices and sophisticated high net worth investors.
Younger people … view this as a technology that has grown up as they have grown up, and therefore crypto-native.
– Caroline Bowler, General Manager of BTC Markets
Independent Reserve also said its data showed that men were 2.6 times more likely to own crypto than women, but the gap narrowed with women opening accounts increasing 50 percent in January and February compared to previous months, respectively.
BTC Markets now has more than 300,000 customers in Australia and the wild craze for digital currencies in 2021 resulted in 16 percent of the total loyalty amount for 2020 in the first six days of this year.
The dominant customer base remains younger generations with 45 percent of customers under 30 years of age. “Younger people grew up in a digital-first era,” said Ms. Bowler. “They see this as a technology that has come of age as they have come of age, and so, if you will, they are crypto-native – they used to be native on social media. I don’t think it’s a bolt in the pan for them, it’s not about a quick buck. ”
Enforcing regulatory and tax obligations on transactions or investments in cryptocurrencies in Australia is still an area of development. A Senate-selected committee on financial technology and regulatory technology is mandated to report on the issue by April 16.
The crypto exchanges currently have legal obligations under general financial services laws to the Australian Securities and Investment Commission AUSTRAC and the Australian Tax Office as an asset class that was once ridiculed by investors as worthless and crooked by regulators is forcing its way into the mainstream .
“We hear stories about customers who invested back in 2017 and are now paying them off and using them as down payments on mortgages so customers can customize their own needs,” said Ms. Bowler.
The final move for digital currencies this week was news on Tuesday that the major bitcoin financier MicroStrategy will borrow $ 600 million to buy more of the currency.
This follows Elon Musk’s electric vehicle maker Tesla investing $ 1.5 billion in Bitcoin and announcing that it will accept it as payment for vehicles.
Other professional investors remain skeptical of digital currencies, arguing that the staggering growth in publicity is driving bubble valuations for an asset class that is not returning cash flow to holders.