Research conducted by the Independent Reserve, a crypto exchange, revealed that more than 6.5 million Australians have invested in digital assets like crypto. Independent Reserve’s latest survey showed that the number of Australian baby boomers who owned volatile digital currencies had quadrupled in the last six years.
Crypto Exchange Independent Reserve revealed that as many as 6.5 million Australians have invested in digital currencies. According to the firm’s latest survey, digital asset ownership rates for baby boomers have increased fourfold over the last six years. The number of Australians aged above 65 years who owned crypto increased to 8.2 percent. Respondents with self-managed super funds but would like to invest in Bitcoin increased twice within the same period.
Baby Boomer couple says Bitcoin changed their lives
During the survey, Terry and Justine Sanders, a couple from Sandgate, were identified as a part of a small but rapidly increasing number of senior citizens venturing into crypto in a bid to boost their retirement savings. The pair said they had invested $48,000 into crypto in 2019. The couple revealed they earned half a million dollars after selling their bitcoin four years later. Ms Sanders said the Bitcoin cash-out changed their lives.
The baby boomer couple said they did not share their investment journey with their peers. The pair revealed that the few peers they told about crypto investing thought they were completely out of their minds.
The Australian Securities and Investments Commission (ASIC) categorized digital currencies as a high-risk investment. Alan Kirkland, the ASIC commissioner, said the digital assets were prone to market crashes. Kirkland warned that cryptocurrency was unsuitable for senior citizens who needed financial stability.
The commissioner said that investors might get lucky but could lose money quickly. Mary Delahunty, the Chief Executive of the Association of Superannuation Funds of Australia, said fund managers carried out a huge amount of due diligence in cryptocurrency. Delahunty added that retail investors must also do the same before they invest in cryptocurrency.
The CEO asserted that there have been investors who have been able to capitalize significantly on the cryptocurrency surge. Delahunty added that if those investors were happy with the risks, it could be a part of a balanced investment portfolio.
Crypto coach says Boomers want to invest in Bitcoin
Sydel Sierra, a crypto coach based in Brisbane, said crypto offered a very low barrier to everyone who wants to start investing. Sierra clarified that anyone with a computer, laptop, and internet connection could start investing in crypto.
According to Sierra’s survey, which involved her 700 clients, a third were over 60. Most retirees first heard about cryptocurrency from their grown-up children. About half of her clients had invested at least $60,000 in crypto. 10 percent of her clients had a crypto portfolio of over $300,000, which was increasing.
Sierra said baby boomers and most retirees were looking at the benefits millennials leverage. The coach admitted that there was a fear of missing out among baby boomers and retirees.
The Australian Financial Complaints Authority recorded over 2000 crypto complaints in the last financial year. The authority expected the number to increase in the coming years due to the increasing number of Australians investing in crypto.
According to the Australian Federal Police, Australians lost over $170 million to cryptocurrency scams in 2023. The money lost in the crypto scams was rarely recovered. Kirkland said people scammed by dodgy operators usually had nowhere to turn.
The ASIC commissioner argued that investors would not have the same consumer protections if anything went wrong. Kirkland stated that people did not have the right to file a complaint or go to an independent authority that the client would have if they were dealing with a traditional financial institution.
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