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The hype around cryptocurrencies is on the rise but is it here to stay?

Published

2 years ago

December 5, 2022

Costa Haritos

The global cryptocurrency sector will soon account for nearly $35 billion worth of transactions worldwide

When Bitcoin was born in 2009, the word ‘cryptocurrency’ was hardly typed into a Google Search browser.

Fast-forward to 2022, and the vice chair of the Federal Reserve Lael Brainard, has described “serious vulnerabilities” within the crypto financial system.

“Despite significant investor losses, the crypto financial system does not yet appear to be so large or so interconnected with the traditional financial system as to pose a systemic risk,” Ms Brainard said.

According to recent data, 16 per cent of Americans used or owned cryptocurrencies this year.

This is three times more than 2019 figures.

What’s all the fuss about?

The hype surround cryptocurrencies is spreading around the world, according to new analysis by the Statista Global Consumer Survey.

Digital currencies like Bitcoin, Ethereum, and Binance have drawn the interest of more and more people during this time.

In fact, Brazil, Germany and the U.S. reported a jump in crypto users between 2018–19 and 2021–22.

In some cases, like in India, the number of crypto users more than tripled.

Indian crypto users rose from 8 to 27 per cent in the same reporting period.

Ms Brainard said the ‘get rich, quick’ promise of cryptocurrencies is not as attractive as it seems.

“Contrary to claims that crypto-assets are a hedge to inflation or an uncorrelated asset class, crypto-assets have plummeted in value and have proven to be highly correlated with riskier equities and with risk appetite more generally,” she said.

U.S. cryptocurrency users have risen from 5 per cent in 2019, to 15 per cent by 2022.

Meanwhile, Spain and South Africa have seen modest gains, with slight increases to 26 and 23 per cent respectively.

Is this growth sustainable?

While India has the highest number of crypto users, the U.S. is responsible for 53 per cent of all transaction value.

Over $18 billion will be generated in the U.S. market, while Japan, Britain and South Korea all contribute more than $1 billion annually.

As the sector continues to grow, the Federal Reserve is pushing for regulatory action.

“It is important that the foundations for sound regulation of the crypto financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system.”
Lael Brainard, FEDERAL RESERVE

Statista believes the adoption of cryptocurrencies will continue growing on a global scale.

In fact, estimates show 257.2 million crypto users worldwide, or 3.2 per cent of the world’s population.

The base of crypto users will expand at double-digit rates through to 2023, despite user growth slowing down.

Statista expects close to 294 million crypto users next year. This is an annual increase 14 per cent.

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Agricultural Investment: challenges, sustainability and risk management

“Farming: A meaningful lifestyle intertwined with nature, community, sustainability, and the challenges of risk management and market fluctuations.”

Published

1 month ago

April 10, 2025

Nathan Langridge

Farming: A meaningful lifestyle intertwined with nature, community, sustainability, and the challenges of risk management and market fluctuations.

In Short

Farming is a rewarding lifestyle that involves overcoming challenges while fostering community and connection to nature. Emphasising sustainability and risk management, farmers adapt and persevere to thrive in their profession.

Farming is not just an investment; it represents a fulfilling lifestyle closely tied to the land.

Farmers experience the daily realities of seasonal cycles and weather patterns that influence their work.

They face various challenges, including disease outbreaks, fires, predators, and fluctuating market conditions.

Despite these hurdles, there are also significant triumphs that come with managing a farm or ranch.

Farming fosters a sense of community, bringing together people who share traditions and values.

There is a profound connection to nature that many farmers cherish in their daily lives.

Sustainability is becoming increasingly important, prompting farmers to adopt more environmentally friendly practices.

This shift not only benefits the land but also helps create new market opportunities by connecting farmers with consumers.

A key recommendation for those in agriculture is to focus on risk management.

Building external investments and diversifying income sources can provide a safety net against uncertainties.

Overall, the farming lifestyle is one of perseverance and adaptation, driven by a passion for the land and a commitment to community and sustainability.

Dr Steven Enticott is a finance professional, speaker, regular columnist, and author of The Man With A Plan.

For more information www.ciatax.com.au

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Budgeting Strategies for Economic Changes Post-2025

“Adapting Financial Strategies for a Changing Economic Landscape Beyond 2025: Budgeting for Uncertainty and Long-Term Goals.”

Published

1 month ago

April 10, 2025

Nathan Langridge

Adapting Financial Strategies for a Changing Economic Landscape Beyond 2025: Budgeting for Uncertainty and Long-Term Goals.

In Short

The evolving economic landscape requires individuals to adapt budgeting strategies to manage financial challenges effectively. Staying informed and flexible in financial planning is essential for achieving long-term financial goals.

The economic landscape is evolving, necessitating new budgeting strategies for 2025 and beyond.

It is essential to regularly review and adjust your budget based on changing variables like inflation, interest rates, and fluctuations in income or expenses.

Staying informed about economic trends and financial news is crucial for making informed decisions regarding your finances.

Building a solid financial foundation will help individuals manage economic challenges and work towards their long-term financial objectives.

Flexibility in budgeting and an awareness of economic conditions will contribute to successful financial planning.

Achieving financial goals requires proactive measures and adaptations to ongoing changes in the economy.

Investing time in understanding financial trends can empower better decision-making regarding personal finances.

Preparation and adaptability are key in a volatile economic environment.

Establishing stable financial habits will provide resilience against unexpected economic shifts.

Overall, adapting budgeting strategies in response to the changing economic landscape will be vital for financial success in the coming years.

Dr Steven Enticott is a finance professional, speaker, regular columnist, and author of The Man With A Plan.

For more information www.ciatax.com.au

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Micro-investing: the tactic turning spare change into life-changing wealth

Published

1 month ago

April 8, 2025

ticker NEWS

How young Australians are reshaping their financial futures with small, smart moves

Investment Insights is an informative and inspiring interview-style show that dives into the world of money management and wealth creation, making complex financial concepts accessible to all.

Hosted by the Founder of The Investor’s Way, Andrew Woodward.

Micro-investing is becoming a popular financial tool, especially among younger investors. Offering low entry barriers, automation, and the benefits of compounding, micro-investing allows users to start growing wealth with small amounts. It’s an ideal option for those looking to develop positive financial habits early.

With time on their side, young investors can leverage micro-investing to build a solid financial foundation, but they must remain mindful of costs and strategies to make the most of their investments.