Bitcoin (CRYPTO: BTC) hasn’t been immune to the global selloff in equities.
Bitcoin is down 2.2% over the past 24 hours, currently trading for US$41,320 (AU$57,388).
Ethereum (CRYTPO: ETH), the world’s number 2 crypto by market value, is sliding as well.
One Ether is currently worth US$2,846, down 3.5% since this time yesterday.
This, as the S&P/ASX 200 Index (ASX: XJO) follows US equity markets sharply lower, with investors fretting about the US Federal Government hitting its debt ceiling and sharply rising commodity prices fuelling renewed inflation fears.
And it’s this inflationary angst that could end up supporting the Bitcoin price.
That’s according to a new survey, which reveals more Aussie investors are looking to cryptos as a hedge against a potentially sinking dollar.
What did Gemini’s crypto survey reveal?
Global crypto platform Gemini commissioned a survey of 1,010 Australians who have invested in cryptos.
Chief among the results was that 59% of respondents believe cryptocurrencies will offer better long-term growth potential than the Aussie dollar. Meaning if inflation fears kick in, more investors may turn to Bitcoin and other leading digital tokens.
Not surprisingly, cryptocurrencies remain more popular with younger investors than older investors. 72% of 25–34-year-olds said they believe cryptos are a valuable asset in a diversified portfolio, compared to 57% of those over 55.
Some issues holding respondents back from investing more in cryptos are lack of regulation and lack of information. 32% of the surveyed panel who don’t currently invest said they will invest more when cryptocurrencies are regulated. 34% said they’d up their investments when they have more information about crypto markets.
As for gold, gold bugs rest easy. Only 8% of respondents thought cryptos were a better investment than gold.
And, with the resurgent price, 51% of respondents believe it’s too late to invest in Bitcoin.
Bitcoin has experienced “meteoric growth”
Commenting on the survey results, Jeremy Ng, Gemini’s Asia-Pacific managing director said:
Both cryptocurrency and gold are often seen as ways to hedge against inflation. Gold has historically been considered a safe-haven asset. However, Bitcoin and several other cryptocurrencies have experienced meteoric growth and offer unique, innovative features that make them stand out.
Some cryptocurrencies have the potential to benefit investors by creating tools and resources that support the growth and exchange of value outside of traditional financial institutions, without the need for an intermediary. The blockchain technology that underlies crypto can be applied to a large range of industries, beyond simply money and finance.
Jeremy isn’t being hyperbolic when he says there’s been meteoric growth in the crypto world.
According to Gemini’s release, the total crypto market cap in September 2020 was roughly AU$529 billion. As of September 2021, it stood at AU$2.9 trillion
However, Jeremy added these words of caution to would be Bitcoin and crypto investors:
The cryptocurrency space is still in its early stages and is therefore subject to much more volatility than the traditional asset classes like the stock market. As a result, it is possible for individuals to see short-term losses.
In other words, do your homework before making any investments. And never invest more than you’re prepared to lose.