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New Zealanders are turning to cryptocurrencies rather than homeownership for financial freedom
New research conducted by Protocol Theory, in collaboration with Easy Crypto, New Zealand’s largest cryptocurrency exchange, reveals a growing interest among Kiwis in cryptocurrencies as an alternative means to achieve financial freedom and move away from the traditional dream of property ownership. home. According to the findings, almost half of New Zealanders have invested in cryptocurrencies or are considering doing so in the future.
The survey highlighted that around 50% of New Zealanders already own cryptocurrency, have owned it previously or are exploring future investments in this digital asset class. This surge in interest is in line with growing disenchantment with conventional financial systems, as 33% of investors reported that cryptocurrency’s appeal lies in minimizing profits for banks and corporations. Many interviewees identified banks and governments as the main obstacles to their financial freedom.
Additionally, 60% of respondents believe they could incrementally invest small sums in cryptocurrencies, compared to just 16% who feel the same way about real estate. This sentiment highlights the perceived accessibility of cryptocurrency investing compared to the high barriers to entry in the real estate market.
“For many Kiwis, the dream of owning a home is becoming increasingly unattainable,” said Janine Grainger, co-founder and CEO of Easy Crypto. “With younger generations facing financial challenges unless they inherit wealth, and older generations looking to bolster their retirements, cryptocurrency is gaining intergenerational interest.”
The data highlighted a notable openness to alternative investments. Only 20% of respondents consider government-insured investments to be the only safe option, indicating a growing willingness to explore other financial avenues. Interestingly, 26% of New Zealanders agree that cryptocurrencies enable greater economic equality, beating the 23% who feel the same about property investments.
New Zealand’s cryptocurrency adoption rate is at an all-time high. Of more than 1,000 respondents, 14% reported owning or having owned cryptocurrency, an increase from the 10% reported by the New Zealand Financial Markets Authority in 2022. When including those considering future investments, the rate of adoption rises to 45%, suggesting New Zealanders are early adopters in the global cryptocurrency adoption landscape.
Despite the growing interest in cryptocurrencies, the industry faces significant barriers to broader adoption. Grainger noted that while digital currencies solve many challenges of the traditional financial system, significant gaps remain between intention to invest and actual investment actions. A significant 72% of those who have yet to invest in cryptocurrencies find the process confusing and difficult to manage.
The report also reveals that 67% of respondents find information about cryptocurrencies difficult to understand and feel unsure about who to consult for guidance. This sentiment was echoed by existing investors, who cited similar barriers. Additionally, half of respondents support the need for regulatory frameworks governing the operations of cryptocurrency providers to promote an environment of ethical and trustworthy practices.
Grainger highlighted the need for the cryptocurrency industry to focus more on education and building trust. “To bridge the gap between recognition of cryptocurrencies as a future financial solution and concrete action, we need to simplify the investment process and make it more accessible. This includes offering stablecoins that provide a stable entry into the digital market and easy-to-use wallets tailored for beginners.”
It also advocated a user-centric approach, promoting simple communication and greater security. “The industry must prioritize investor motivation, opportunity and confidence. In this way, we can guarantee easier access and greater participation by the general public.”
Grainger concluded that the future of cryptocurrency depends on demystifying the investment process, providing users with the necessary tools and resources, and increasing security measures to protect their investments. Only by addressing these crucial areas can the cryptocurrency industry pave the way for wider adoption and mainstream acceptance.