Research suggests tech-savvy Australians are using their tax return to buy cryptocurrencies, in revolt against record low interest rates and extortionate property prices this year.
A recent survey by YouGov has found that of the 12% of respondents that indicated they’ll be investing their tax return, a quarter of them plan to invest in cryptocurrency.
Bamboo’s assessment of the YouGov survey
The survey findings have prompted Blake Cassidy, CEO of micro-investing platform Bamboo, to encourage his platform users to practice diligence when investing their tax returns.
“For many Australians, this will be the first time they receive their tax return at a time when cryptocurrency is on their radar of possible ways to grow their money,” said Blake.
“There is temptation to drop the entire lump sum straight into crypto, but at Bamboo we’ve long promoted the benefits of dollar-cost averaging or investing smaller amounts regularly.”
“This tax time shouldn’t differ for those who have made the decision to invest their tax return.”
Cryptocurrency investment trends seen by Bamboo
Bamboo has grown with more than 11,000 active investors in the past nine months, helping them to invest over $5.8 million in digital crypto currencies like Bitcoin and Ethereum.
Bamboo is popular with young professionals, aged between 25-35 who make up 65% of users.
The Perth-based app developer and CEO said a growing number of young investors were eschewing their savings account and plugging their hard-earned dosh into crypto.
“Nobody wants to see their savings wasting away in a bank account that can’t keep up with inflation. Meanwhile, many young Australians have been priced out of the house market or don’t want a mortgage they can’t afford when interest rates rise,” Mr Cassidy said.
Interest rates have been at a record low of 0.10% since November last year. The Reserve Bank predicts the condition for an increase would not be met until 2024.
Despite this, the majority of people still plan to squirrel away their tax returns this year. According to a poll by Finder, 35% of the respondents are planning to add to their savings.
“The beauty of crypto is that it’s not shackled to interest rates, banks or government decisions. It’s an escape from the centralised systems that have been letting us down.” Blake said.
“Young people are turning to crypto as part of their long-term investment strategy and our app makes it easy and safe using dollar cost averaging to mitigate coin volatility.”
Gone are the days of the holiday splurge with just 4% planning a vacation. 12% wanted to pay off household bills, 7% to pay off their mortgage and 5% to balance their credit card debt.
Comments from a millennial using Bamboo
Jesse Coghlan, a 25 year old Sydney sider, is one of a growing number of Australians putting their faith in crypto this tax return season, and his weapon of choice? Bamboo.
“70% of my tax return will go into crypto via Bamboo using their dollar cost averaging function and the other 30% will probably be invested in more traditional ETFs and companies.”
Cryptocurrencies’ volatility and knowing when to buy are considered as genuine concerns.
“If it’s low I buy, if it’s high I buy because my Bamboo is set up to buy per fortnight. I know it’s happening in the background and takes the decision making and stress out of the process.”
“I’ve also set up round-ups so whenever I make a transaction buying groceries or a coffee, Bamboo takes a dollar or so off the top and plugs it into my digital currency portfolio.”
“Bamboo has honestly been the easiest option for me. I don’t even have to think about it.”
