Crypto Market Analysis

Cryptocurrency is a highly risky and complex investment that should not be undertaken unless you are prepared to potentially lose all the money you invest. It is important to note that if something goes wrong, you are unlikely to be protected. Therefore, it is crucial to obtain appropriate financial advice and only invest what you can afford to lose.

Top Cryptocurrency Statistics

Here are some key statistics related to the cryptocurrency market:

1. By the end of 2021, it is estimated that nearly 300 million people worldwide owned some kind of cryptocurrency (source: crypto.com).
2. As of August 2023, the worldwide market capitalization of cryptocurrencies was estimated at $US1.09 trillion (source: CoinMarketCap).
3. Bitcoin makes up 47% of the total value of the crypto market as of August 31, 2023 (source: Coingecko).
4. The worldwide cryptocurrency market is expected to grow by 12.5% in compound annual growth rate (CAGR) by 2030 (source: Grand View Research).
5. In 2022, approximately 25.6% of Australians owned cryptocurrency (source: statista).
6. Bitcoin is the leading cryptocurrency owned in Australia (source: statista).
7. A study by the Australian Securities Exchange (ASX) in 2023 revealed that 29% of Australian investors are interested in buying cryptocurrency in the next 12 months (source: ASX).
8. The study found that 15% of Australian investors currently hold crypto in 2023, with that number rising to 31% for investors aged between 18-24.
9. The median amount Australians invested in crypto was $5,100.
10. Similarly, a UK survey conducted by Forbes Advisor showed that those aged 18-34 are twice as likely to own a type of cryptocurrency than those aged 35-54.

Crypto Exchanges

Crypto exchanges play a vital role in facilitating the trading of cryptocurrencies. According to Statista, the trading volume in the entire cryptocurrency market reached a peak of $US3 trillion on November 8, 2021.

Cryptocurrency Awareness

Cryptocurrency awareness is on the rise, with Bitcoin being the most well-known cryptocurrency. According to a Forbes Advisor survey conducted in the UK:

• 90% of respondents had heard of Bitcoin.
• Other familiar coins included Ethereum (50%), Dogecoin (45%), Binance Coin (36%), USD Coin (27%), Tether (26%), Solana (21%), and Cardano (18%).

Legitimacy of Cryptocurrency

The legitimacy of cryptocurrency as an investment is a subject of debate. According to the same Forbes Advisor survey conducted in the UK:

• Almost 67% of respondents agreed that cryptocurrency is a legitimate form of investment.
• Almost 17% neither agreed nor disagreed with that statement.
• Almost 17% disagreed that cryptocurrency is a legitimate investment.

Despite the lack of regulation in the cryptocurrency market, 24% of cryptocurrency investors trust it more than traditional investments. Additionally, according to the FCA in the UK, 60% of crypto holders said they were happy to trade in the cryptocurrency market despite it being unregulated.

Reasons for Investing in Cryptocurrency

There are various reasons why people choose to invest in cryptocurrency. According to the Forbes Advisor survey:

1. 42% of respondents invest in cryptocurrency because it is an easier way to start investing through an app.
2. 34% find cryptocurrency easier to understand than conventional investments.
3. 30% believe in the message and mission statement behind cryptocurrency.
4. 27% appreciate the easier access to money when it is invested in cryptocurrency.
5. 26% were influenced by the success of their friend or family member’s investment.
6. 24% trust cryptocurrency more than traditional investments.
7. 21% have made more money through crypto than traditional investments.

In Australia, portfolio diversification was the leading reason for investing in cryptocurrency.

Reasons for Avoiding Cryptocurrency

On the other hand, there are several reasons why people decide not to invest in cryptocurrency. According to the same Forbes Advisor survey:

1. 58% of respondents do not trust cryptocurrency.
2. 34% do not understand the technology behind cryptocurrency.
3. 21% believe that cryptocurrency performs poorly as an investment.
4. 14% are concerned about the environmental impact of cryptocurrency mining.
5. 12% are unsure where to start when it comes to investing in cryptocurrency.
6. 9% do not have the spare income to invest.
7. 9% have seen a poor performance of a friend or family member’s investment.

A survey conducted by Luno indicated that 71% of Australians have less than a basic understanding of cryptocurrencies in 2023.

Australian Investment in Cryptocurrency

The ASX conducted a study on Australian investors in 2023, revealing the following findings:

1. 9% of Australian investors have bought or sold cryptocurrency in the last 12 months.
2. Cryptocurrency makes up 11% of female investor portfolios on average.
3. Cryptocurrency makes up 31% of next-generation investor (aged 18-24) portfolios on average.
4. Cryptocurrency makes up 12% of SMSF portfolios on average.
5. Cryptocurrency makes up 15% of Australian investor portfolios across all demographics on average.

Profits Made or Lost Investing in Cryptocurrency

According to the Forbes Advisor survey, the performance of crypto investments in the past year varied among investors:

1. 57% made money from investing in cryptocurrency.
2. 16% neither made nor lost money.
3. 14% lost money.
4. Only 7% felt that they made a significant amount of money.

Impact of Cryptocurrency Crashes

In the UK, Forbes Advisor asked respondents about the impact of recent cryptocurrency crashes on their perception of cryptocurrency:

1. 58% agreed that the crashes have made them view cryptocurrency in a more negative light.
2. 28% neither agreed nor disagreed.
3. 13% disagreed.

Despite the negativity surrounding cryptocurrency crashes, 31% of Australian investors still intend to buy crypto in the next year, according to the ASX 2023 investor study.

Conclusion

Investing in cryptocurrency carries significant risks and complexities. It is crucial to understand the market and seek appropriate financial advice before making any investment decisions. The cryptocurrency market is highly volatile and can result in the loss of invested capital. Therefore, it is important to only invest what you can afford to lose.