Choose Crypto Over Real Estate, Study Indicates
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Loading... - Willie Morgan
- 02 Jul 2024
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A new study reveals a growing interest in cryptocurrency among New Zealanders, with nearly half favoring it over real estate for building wealth. Conducted by Protocol Theory and Easy Crypto, the research suggests that many Kiwis are turning to crypto due to frustrations with traditional financial systems.
Over a third of the investors surveyed expressed an attraction to crypto because it eliminates the need for banks and other institutions, which they view as obstacles to their financial goals. Additionally, the survey indicated that most people believe they can invest in crypto gradually, whereas only a small portion feel the same about real estate. This highlights the perception of crypto as more accessible than real estate, given the high entry costs associated with the property market.
“For many Kiwis, the dream of home ownership is becoming increasingly unattainable,” said Janine Grainger, CEO of Easy Crypto. “With younger generations facing financial challenges unless they inherit wealth, and older generations looking to bolster their retirement, cryptocurrency is gaining cross-generational appeal.”
New Zealand is experiencing a boom in crypto use, with ownership reaching a record high. Out of over 1,000 respondents, 14% currently or previously owned crypto, up from 10% in 2022. Moreover, 45% are considering investing in crypto in the future.
For many, the aspiration of owning a home in New Zealand clashes with their current economic circumstances. Concurrently, cryptocurrency is gaining wider acceptance, even among institutional investors. Despite the surge in interest, 72% of those who haven’t invested yet say they’re confused and unsure where to begin. The main obstacles cited were difficulty understanding information (67%) and lack of reliable guidance (67%). Interestingly, even existing investors reported facing these same issues.
This suggests a need for clearer information and better education around cryptocurrency to bridge the gap between interest and investment. Notably, half of those surveyed want regulations on how crypto providers operate.
The findings underscore a significant shift in investment preferences among New Zealanders, driven by economic challenges and the perceived accessibility of cryptocurrency compared to traditional real estate investments.
