Despite the rise of Bitcoin and the looming possibility of an Australian government Digital currency, Australians know very little about cryptocurrencies, a new survey has found.
Only one in 10 Australians feel they understand what a cryptocurrency is, according to a Saxo Markets survey, while those older than 65 are even less certain.
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There is also a divide between the sexes.
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Around 21 per Cent of Australian men claim to have a handle on what cryptocurrencies are and how they work, the survey found, compared to just seven per cent of women
Bitcoin was easily the most well-known of all the cryptocurrencies (there are more than 10,000), with 38 per cent of Australians surveyed recognising the name which is synonymous with digital currencies.
The next most recognised cryptocurrencies were Ethereum, hitting home with 12 per cent of Australians surveyed, and Dogecoin on 8 per cent.
And although non-fungible tokens — or NFTs — rocketed to prominence in 2021, 75 per cent of Australians have still never heard of them.
NFTs are one of the hottest commodities coming out of the blockchain industry in 2021 — earlier this year a jpg file sold for more than $88 million — but their popularity has yet to reach Australia.
NFT works, including digital art, GIFs and even tweets, have been thrust into the spotlight in what many are calling a digital art boom.
Last week, Federal Treasurer Josh Frydenberg estimated more than 800,000 Australians have owned cryptocurrency at least once.
Cryptocurrencies were a "fast-moving area" which the government needed to get ahead of, Mr Frydenberg said, while at the same time declaring the Commonwealth and Reserve Bank are in planning to launch a central cryptocurrency currency.
Forty-two per cent of Australians surveyed said they would use a cryptocurrency if it was made legal tender tomorrow, but only one in four agreed that cryptos should be declared legal by the government.
If cryptos were in legal circulation, one in three Aussies said they would use it by putting it in their savings or a retirement plan.
Foreshadowing a regulatory framework was now needed for cryptocurrencies and its associated industries, Mr Frydenberg acknowledged a "digital revolution" triggered by Bitcoin was now well underway in Australia's financial sector.
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What is an NFT?
An NFT is a digital token encrypted with the artist's signature on the blockchain — a digital ledger that is the backbone of cryptocurrencies like Bitcoin and Ethereum — allowing sellers and buyers to verify authenticity and ownership.
NFTs ensure a buyer has the true original directly from the artist.
They also allow artists to sell works directly to buyers on their own, which some have asserted will democratise the art market.
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