More Aussies Back Bitcoin, the Underdog
More Aussies Back Bitcoin, the Underdog
More Aussies Back Bitcoin, the Underdog Jan 2, 2021 at 4:00 p.m. UTC opinion Adrian Przelozny More Aussies Back Bitcoin, the Underdog In January this year, the world watched in horror as sky-high fires tore through 44 million hectares of Australian bushland, engulfing property, wildlife and humanity. Then, just as victims were emerging from the ashes, COVID-19 arrived and the local economy went into lockdown. Gross domestic product shrank 7% in the three months through June, unemployment rose as high as 7.5% and Australia entered its first recession in 30 years. Beyond the bleak news headlines and broader economic downturn, I have uncovered evidence to suggest that a sizable chunk of the Aussie population see bitcoin as a ray of hope.
Like bitcoin, we’ll hang on. All this is mere validation for those who were already betting on bitcoin for their future. At Independent Reserve, we have over 8,000 self-managed super funds (SMSF) established by individuals who are going so long on crypto they’ve put their retirement savings into it. The first was created in 2016 when one savvy punter put AUD $41,000 into bitcoin. Today, that account is valued over 1.2 million AUD. That’s an annualized return of nearly 100% year on year. Comparably, Australia’s leading “aggressive growth” industry superannuation funds returned 9% year on year over a five-year period. So it’s not hard to imagine why 13% of IRCI survey respondents are pushing for their super fund to start investing in digital assets. That number is even higher if you ask the under-34 age group; almost 30% are keen on the idea and a further 25% said they were likely to set up an SMSF and do it themselves, should they have to wait any longer. This is a critical insight when the Australian population is aging fast. Most pension funds are in outflow and struggling to demonstrate their relevance to the next generation. This could be the disrupt-or-be-disrupted story to define an era. This lack of trust and confidence in institutions has been brewing for a while. This year, as big-league investors such as Paul Tudor Jones told the world they bought crypto as a hedge against central bank and government actions, and the money printer go brrr meme spread through Twitter like a virus, almost a third of under-45-year-olds told us they, too, were worried about the process of quantitative easing (QE) devaluing their wealth. As such, each newspaper headline about a crypto bubble about to pop or some talking head dismissing it as a scam is probably doing more to assist adoption than they realize. They forget our nation’s positive bias for the one that isn’t meant to win but is fighting anyway. The one who was told to go home but is still here. That’s the little guy that we’ll keep cheering to the end. See also: Michael Casey – Money Reimagined: Memes Mean Money In the year ahead, I expect we will see plenty of hardship thanks to the flow-on effects of QE as well as the unpredicted and unintended consequences of many COVID-19 policies. But I suspect this will only serve to strengthen Australia’s conviction. To the general public, bitcoin is still the up-and-comer, shunned by the traditional set and struggling to be recognized on the main stage. Honestly, that’s what makes it so likable. And with 7.7% of IRCI respondents admitting they planned to buy crypto in 2020 but didn’t due to COVID-related economic pressures, I can only assume they’ll enter the market as soon as they hit greener pastures. To me, this is a classic example of that iconic Aussie resilience that binds us together during times of fear, uncertainty and doubt. We may fall on hard times but we never stop working toward our goals and our optimism for the future is unwavering. We’re still willing to take a punt, we’re still keen to have a go and we choose to see the upside where others focus only on the risk. Like bitcoin, we’ll hang on. Because we love to believe that anything is possible. Read more about… Australia Bitcoin Opinion Year in Review 2020 Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups . Related