Why Australians are choosing crypto over fiat
The Australian cryptocurrency market is not one of the best-performing ones, unfortunately, but this doesn’t mean that the Aussies don’t like Bitcoin or two laying around in their digital wallets.
While many of us tend to search for news on different cryptocurrency websites, it is very rare to see Australia mentioned in any headline. This is due to the fact, that the Aussies have very different uses for the technology, compared to a typical crypto investor.
However, according to a survey that was conducted in September of 2018, the number of crypto users in Australia had doubled despite the market plunge. Which lead many to believe that the decreased prices on cryptos were the only real reason for attention. Although most of us see cryptocurrencies as a means of generating profits through trading platforms, Aussies have very different uses for them.
What are cryptos used for in Australia?
Australians are one of the heaviest gamblers in the world. In fact, it’s painful to say this, but Aussies tend to lose much more on gambling websites than any other nationality. Around $1,000 per person to be exact.
Due to so many losses for the country’s population, the government has been trying to restrict gambling use as much as possible through new regulations, payment method amendments and anti-gambling campaigns.
One of the primary messages that the government sent to gamblers, was the fact that all of their gambling transactions are damaging their credit score with their banks. Due to this damage, gamblers would not have an opportunity to take out loans for houses or business development in the future.
Although credit score may be important for a very small percentage of the population, it still managed to send ripples in the gambling activity indicator. In 2018, only 25% of 25-35 year-olds reported gambling participation, compared to 2017’s 37%.
But there is still a very large portion of the population that is utilizing cryptocurrencies for their gambling habits.
How people avoid credit score damage with cryptos
It needs no explanation that cryptocurrencies are very hard to track, and cannot be refunded once the transaction has been made. Therefore it has become, government priority to get crypto exchanges on board, for sharing customer trading data. This is in order to determine, where customers usually spend their cryptocurrencies. All of the data will be compiled together to determine which individual spends what.
This used to be a very small issue in 2017, as nearly every Aussie was just using third-party payment providers, which are still easier to track. But due to the influx of multiple Australian bitcoin live gaming platforms, it has become more and more apparent that the decrease of spent funds on gambling, was actually a cover-up by cryptos.
Nearly 80% of the population had at some point taken part in gambling activities. That type of indicator does not decrease overnight. Funds being funnelled through blockchain platforms were mostly going to the online gambling operators.
Why can’t Australia just demand data then?
After introducing such strict regulations for local crypto exchanges, it leaves people wondering how they’re not demanding transaction data from the online gambling operators as well. Well, the fact is that the Interactive Gambling Act of 2001, prevents local companies to operate online. Meaning that every single online gambling platform is foreign.
And the regulation states that these operators are only responsible for disclosing overall revenue, not the channels they’ve received it from. Therefore it creates this loophole for Australian gamblers to utilize while providing games online.
Due to this massive industry moving more towards digital payments rather than cash, it is apparent as to why Aussies prefer to use cryptos instead of fiat. Even if they went for fiat, it would lead to some type of credit score damage, as it’s easy to track. While cryptocurrencies are not. Even more, platforms that provide crypto transactions the most, are not obliged to disclose information on who is making the payments.
Image Source: newsbtc
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