Bitcoin (CRYPTO: BTC) enthusiasts have largely shrugged off the recent price falls, which have been mirrored by most of the major cryptocurrencies.
One Bitcoin is currently worth US$35,384 (AU$47,179). That’s down about 0.3% since this time yesterday.
While the world’s largest digital token by market cap remains up 24% year-to-date, it’s now down 45% from the record high US$64,829 reached in mid-April.
Cryptocurrencies have the potential to deliver outsized gains in rapid order. And just as rapidly, they have the potential to see half or more of their value evaporate.
Are 4 million Aussies putting their wealth at risk?
The recent volatility in crypto markets is nothing new. And it hasn’t appeared to diminish interest in investing in Bitcoin and other digital tokens Down Under, particularly among younger Australian investors.
As CoinTelegraph reports, fully 40% of Australian millennials believe investing in crypto beats other investment means to save for a property.
That’s according to a survey conducted by cryptocurrency exchange Kraken along with its partner YouGov. The online survey queried 1,027 Australian adults from 3 May to 5 May. At the time Bitcoin had slipped from its record highs but was still trading above US$53,000.
Taking into account all age groups, the survey indicated that 22% of Australians – or some 4 million people – think crypto investments are a better way to save for a mortgage than traditional savings methods.
Commenting on the findings, Kraken Australia’s managing director Jonathon Miller said:
Australians still maintain some conservative attitudes toward investment. Property has been a cultural norm and high on the wish list for most investors, but as affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth.
How the option of investing in Bitcoin and other cryptos to grow wealth works out in the longer-term remains to be seen.
A dire warning on Bitcoin and meme stocks
Michael Burry, the head of Scion Asset Management, has grave doubts about Bitcoin…to say the least.
You likely recognise Burry’s name from the Hollywood blockbuster, The Big Short. That movie portrayed his warnings of a pending subprime mortgage crisis prior to the onset of the GFC in 2008. Which, as we now know, was driven by subprime mortgage issues in the United States.
Last week Burry came out with a new set of warnings, sounding the alarm on both meme stocks and cryptocurrencies.
In a now-deleted tweet (sourced from Bloomberg) Burry wrote:
All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.
The truth is no one really knows where the Bitcoin and the other cryptos will be in 12 months time.
Bitcoin may breach US$100,000 by then. Or it could fall below US$1,000.
For those 4 million Aussies planning to invest in crypto, proceed with care.