MOST cryptocurrency owners in this country are under 34, according to a survey.
losing half a million people in the state now own bitcoin or some other form of cryptocurrency, according to a survey by Australian price comparison site Finder.com.
The research comes after bitcoin, the world’s largest cryptocurrency, recently lost more than 30% of its value since reaching an all-time high in November.
However, soaring US inflation to 7pc helped prices recover after a two-month long downtrend.
Central bankers and other experts have repeatedly warned of the enormous volatility in cryptocurrency values.
The Finder.com survey of 1,529 Irish internet users found that cryptocurrency adoption is strong in Ireland.
It is estimated that 456,000 people in this country owned cryptocurrency as of December.
This represents 12% of Irish adult internet users, up from 8% in October.
About 51% of digital currency owners are between the ages of 18 and 34.
It is estimated that around 38 percent of people aged 34 to 54 own crypto, with just 10 percent of those over 55 owning virtual currency.
Ireland ranks 20th for cryptocurrency ownership out of the 27 countries included in the study. Finder.com surveyed 1,529 Internet users in Ireland in December.
Bitcoin is still the most popular coin, followed by Ethereum and Dogecoin and XRP.
The report finds that around a quarter of Irish adults think cryptocurrency is a good investment – well below the global average of 43pc.
Some 64% of Irish adults know what cryptocurrency is, compared to 85% in Australia.
More men than women in this country own bitcoin and the like.
The values of various cryptocurrencies have been subject to extreme volatility in recent times, and periodic buying frenzy has been spurred by increases in the value of digital currencies.
This week’s US inflation figures, which were at a 40-year high, saw bitcoin soar above $ 44,000 (€ 38,000) for the first time in a week.
Some argue that cryptocurrency is a hedge against rising consumer prices.
In recent months, the price has reached $ 70,000 and as low as $ 40,000.
The Banking and Payments Federation Ireland (BPFI) recently warned of an increase in cryptocurrency investment scams.
Cryptocurrencies are digital assets designed to be a medium of exchange. The property is stored in a computerized database using strong cryptography. The supply of crypto is not controlled by central banks.
The growing interest in this country in buying cryptocurrency comes despite warnings from the Central Bank of Ireland that the investment trend is akin to tulip madness.
The head of the Bank of England also warned that those who buy cryptocurrencies should be prepared to lose everything.
Central Bank of Ireland Governor Gabriel Makhlouf has said he will not invest in digital currencies.
Last month, the Bank of England said bitcoin could be “worthless” and people investing in digital currency should be prepared to lose it all.
In a warning about the potential risks to investors, the central bank asked if there is any inherent value in the most important digital currency.
The market capitalization of crypto assets has increased tenfold since the start of 2020 to reach around $ 2.6 billion (€ 2.27 billion), which is roughly 1 pc of global financial assets.