1 in 4 Aussies looking to give Christmas crypto

Will you find a bunch of bitcoin under the tree this year?

More than a quarter of Aussies are looking to give the gift of crypto this year.

According to research done by Crypto.com, 26 per cent of Australians aged between 18 and 59 are looking to buy “crypto-centric” gifts this holiday season.

Crypto.com general manager for APAC Karl Mohan predicted that more and more cryptocurrency would find its way into Australian homes this year.

“Australians are clearly very keen to adopt cryptocurrencies and integrate their use into day-to-day spending, and we’re excited about helping them,” he said.

Crypto.com found that over half of survey respondents under the age of 44 were considering buying actual crypto, such as bitcoin and ethereum, as a gift for someone.

Another 30 per cent said that they were looking at gifting a non-fungible token (NFTs) this holiday season.

Crypto.com added that 21 per cent of survey respondents said that they were looking to jump on the bandwagon when it came to NFTs, with the popularity of these digital collectibles said to be highest among 35- to 44-year-olds.

Merchandise like crypto-themed socks and hoodies are also expected to find their way underneath more Christmas trees this year, with 43 per cent of those already planning on buying crypto-centric gifts admitting to looking for trendy but tangentially-linked accessories.

Another 42 per cent of Australians expressed an interest in purchasing coin vouchers, while 35 per cent said that they were considering purchasing books on the blockchain and bitcoin as a Christmas gift for someone.

On top of crypto itself being used as a gift, another finding here was a rise in the number of people planning to use crypto to pay for their Christmas shopping.

Crypto.com said that nearly 8 per cent of respondents were looking at paying for their gifts with a cryptocurrency or cryptocurrency-linked card. A further 13 per cent said that they had used crypto to pay for goods or services over the past 12 months.

“Australians are gradually increasing their use of cryptocurrency and blockchain technology, and Crypto.com is committed to ensuring they have a secure platform and the tools needed to take control of their futures,” Mr Mohan said.

Crypto.com found that a growing number of Australians are happy to use cryptocurrencies within their everyday life. Two-thirds of respondents said that crypto had alternative uses beyond just sitting in an investment portfolio.

That being said, security remains a sticking point for many. Crypto.com found that volatility and scams were a key concern for 64 per cent of respondents.

Mr Mohan said that security remains a top priority for many Australians.

“We are hopeful that with greater regulation imminent, and with more traditional financial institutions foraying into cryptocurrency, some of those concerns will be addressed,” he said.  

H&R Block director of tax communications Mark Chapman warned consumers, noting that gifting cryptocurrencies can bring with unexpected tax risks.

“When you gift the crypto, you are deemed to have disposed of it for CGT purposes. Because you’ve gifted it, you could be subject to the “non-arm’s length” rules which substitute the actual amount you were given in exchange for the crypto (nothing as it was a gift) with the market value of the crypto at the time you disposed of it,” he explained.

Volatility is a fact of life in the crypto world. If the price of the cryptocurrency in question has spiked between the time you acquired it and the time you gifted it, you could end up paying the difference in tax.

“So, if you want a tax-free Christmas gift, you might want to stick to giving crypto-themed socks,” Mr Chapman recommended.

Get in touch with the Centra Wealth team to ensure that your investment and financial plan is heading in the right direction. You can contact us at 08 8231 4709 or at info@centrawealth.com.au

Article courtesy of Nestegg

Centra Wealth