Aussie investors are now buying more Bitcoin than gold

A new report suggests Aussie investors are now buying bitcoin and other cryptocurrencies more than precious metals like gold or silver

| More on:
asx share price reacting to bitcoin represented by hand placing bitcoin in gold piggy bank

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Much has been made of the rise of Bitcoin (CRYPTO: BTC) recently. And fair enough too. The price of bitcoin has gone parabolic of late, rising more than 50% over the past month alone. That's despite bitcoin falling almost 15% since this Sunday alone. In fact, between 24 January and Sunday, Bitcoin was up 74%.

Now picture this: bitcoin is up an eye-watering 977% between 16 March 2020 and today. That's enough to give anyone FOMO.

It's hard to gauge exactly how many Aussies are enjoying these gains. That's why a report from BTC Markets makes for some very interesting reading today.

Bitcoin investing surges

According to the report, more Australians are now investing in cryptocurrencies like bitcoin than in precious metals like gold and silver.

The report surveyed more than 2,000 Australian investors over this month so far. This survey found that 12.6% of investors had an investment in a cryptocurrency, whereas only 12.1% of investors held an investment in precious metal.

Nearly a third of those cryptocurrency investors made their first investment following the coronavirus-induced share market crash in March last year. Interestingly, more than half of those who own cryptocurrencies are not planning on selling anytime soon. 51% of these investors stated they did not plan to sell their coins despite the recent run-up in bitcoin prices. And 23% of them stated that they plan on holding their coins for more than 3 years.

The comparison to gold is pertinent because investors are often attracted to bitcoin for the same reasons as they are to gold. Both gold and bitcoin have finite supplies and cannot be 'printed' by governments. As such, they are touted as being 'inflation-proof' and a store of wealth and value. Indeed, some bitcoin investors describe the cryptocurrency as 'digital gold'.

Shares still win out though…

Despite the growing popularity of bitcoin and other cryptocurrencies, shares still dominate as Australian's favourite investment. The report states that although 12.6% of those surveyed had cryptocurrency investments, a far greater 63.6% held shares directly. 28.8% of those surveyed also reported that they owned investments in exchange-traded funds (ETFs) and managed funds. 25.8% said they had an investment property, and 18.8% said they invested in 'collectables'.

At the bottom of the pile were fixed-income investments (9.9%) and annuities (7.7%).

Despite the recent success of bitcoin, the report also tells us that almost 80% of Australians are still not planning on investing in it.

Sebastian Bowen owns Bitcoin. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Share Market News

5 things to watch on the ASX 200 on Friday

A good finish to the week is expected for Aussie investors.

Read more »