The Bitcoin (CRYPTO: BTC) price has stabilised following yesterday's 11% crash.
One Bitcoin is currently worth US$46,290 (AU$62,554). That's down slightly less than 1% over the past 24 hours.
Ethereum (CRYTPO: ETH), the world's number 2 crypto by market valuation, is up just under 1% at time of writing, after losing more than 12% yesterday.
One Ether is currently worth US$3,500.
But don't let the calm waters of the past 24 hours fool you.
Bitcoin remains notoriously volatile
Sticking with the world's largest crypto, Bitcoin fell 58% from its 16 April 2021 record highs until it began to rebound on 20 July.
Since 20 July it's gained 56%, leaving it some 29% below its all-time highs. (If an asset falls by 50%, it needs to gain 100% to get back to even.)
However, according to a new survey by Australian cryptocurrency exchange CoinSpot and market research agency Ruby Cha Cha, that kind of volatility isn't likely to dissuade the majority of Australian investors from buying Bitcoin or other cryptos.
What did CoinSpot's survey reveal about Bitcoin volatility?
CoinSpot surveyed 607 Aussie investors to look at their behaviours and broader trends during the 2021 crypto boom.
As for Bitcoin and Ether's volatility, 71% of respondents said they're "willing to accept moderate to high risk when investing in crypto".
CoinSpot reported that Aussie investors' increased interest in cryptocurrencies is driven by factors including, "a declining appetite for credit cards and traditional financial institutions, concerns around inflation and interest rates, as well as a positive outlook on the Australian economy as it returns to pre-pandemic levels".
As you might expect, younger investors are more likely to invest in cryptocurrencies than older investors. The survey showed a doubling of crypto investing among Generation Z, Millennials and Generation X since November 2020.
The younger generations also have more faith in Bitcoin and altcoins. 42% of Generation Z investors and 35% of Millennial investors surveyed said they "have a strong trust in crypto".
Across all age groups, almost 20% of Australian bought, sold, swapped or traded cryptos in the past 4 years.
Additionally, 36% of respondents said "it's likely they will own crypto in the next five years".
Some other key findings from the survey showed significant changes in the way Aussies invest in Bitcoin, Ether and other cryptos over the past 4 years include:
- Rather than going in blind, 76% of Australian crypto investors say they have "a fair amount of knowledge" of crypto.
- 1 in 2 Australians understand that crypto means a "digital asset" or "currency".
- 75% of Australian investors use an app to invest in crypto.
- 34% of Australian investors trade crypto for fun.
- Female crypto investors have increased from 27% to 33%.
A word from CoinSpot's management
Tim Wilks is the marketing executive at CoinSpot.
Addressing the survey results he said:
These survey findings have indicated a real shift in attitudes towards crypto, especially if we compare attitudes between the 2017 and the 2021 crypto bull markets.
As well-known cryptocurrencies like Bitcoin and Ethereum, plus high-interest altcoins create waves in the crypto market, we're excited to see more everyday Aussies getting involved.
Whether you're a veteran crypto investor yourself or still sitting on the sidelines, don't lose sight of the fact that Bitcoin and other cryptos can lose value just as fast, or faster, than they gain it.
