Australians have been shown to be a sceptical bunch, according to the results of a recent international study.
According to a global survey conducted by consumer research firm Toluna, the majority of Australians (52%) have declared they would never invest in cryptocurrencies.
This compares to an average of just 10% in other countries.
And to double down, 34% of Aussies think crypto is "just hype" and would "crash soon".
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Rat poison squared?
Perhaps Australians have much in common with famous US investor Warren Buffett, who once called Bitcoin (CRYPTO: BTC) "probably rat poison squared".
Neither he nor his longtime right-hand man Charlie Munger can understand how an asset with no intrinsic value can appreciate so rapidly.
Cryptocurrencies like Bitcoin and Ethereum (CRYPTO: ETH) are only worth something because there is a demand for them.
However, digital currency proponents argue that the value of fiat currencies are also artificially created by demand.
Sovereign currencies like the US dollar, UK pound or the Australian dollar are not representative of any good. They simply hold value through social agreement.
Although some countries hold gold reserves, they are not linked to the amount of money in circulation.
Is crypto the solution for developing economies?
Continuing the sceptical streak, the majority of Australians (51%) also thought cryptocurrency is a project with no guarantee of success.
The biggest reasons why Aussies avoided investing in crypto were:
- Fear of risk, felt by 44% of Australians
- Lack of understanding of cryptocurrency, felt by 34% of Australians
Toluna's international survey also showed people in developing countries were far more open to the idea of cryptocurrencies than investors in wealthier nations.
"The most receptive countries to cryptocurrency were Vietnam, the Philippines, Thailand, and India," stated Toluna.
"62% of respondents in Latin America believed cryptocurrency was a long-term upward trend, compared to 15% in North America."
This can be attributed to the lower level of trust in financial institutions and governmental organisations in poorer countries. Significant parts of the population in such regions don't have a bank account.
While El Salvador is the only nation to count cryptocurrency as legal tender after it legalised Bitcoin last year, experts have predicted more developing economies would follow.
