Survey Shows Decrease in Crypto Usage Among US Adults
A recent survey conducted by the Federal Reserve reveals a significant decline in the number of US adults using or owning cryptocurrencies. The annual Survey of Household Economics and Decisionmaking (SHED) found that approximately 18 million adults in the United States reported using cryptocurrencies in 2023, marking a decrease from previous years.
According to the survey, only 7% of the respondents reported using cryptocurrencies in the 12-month period leading up to October 2023, down from 10% in 2022 and 12% in 2021. Interestingly, among those who used crypto, only 1% stated that they used it for financial transactions or sending money, which is a 50% decrease compared to the previous year. On the other hand, 7% of the respondents mentioned purchasing or holding cryptocurrencies as an investment.
These findings differ significantly from the claim made by Coinbase, a prominent cryptocurrency exchange, that 52 million Americans own cryptocurrencies. However, Coinbase did not provide any explanation regarding how they arrived at this figure.
The survey also shed light on the reasons behind the use of cryptocurrencies for financial transactions. Nearly 30% of the respondents who used crypto for such purposes stated that it was because the recipient preferred cryptocurrencies. Notably, a lack of trust in banks was the least cited reason.
The survey revealed that individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrencies for any reason. In terms of demographics, the largest group of crypto users were millennials (aged 30 to 44), followed closely by Generation Z adults (aged 18 to 29). Additionally, men were three times more likely to use cryptocurrencies compared to women. Black and Hispanic adults were more commonly engaged in crypto usage for financial transactions, while Asian adults were the largest demographic using crypto as an investment. Conversely, White adults were the least likely to use cryptocurrencies for any reason.
The survey, conducted in October 2023, included 11,488 US adults aged 18 and older.
Crypto’s Role in Politics
Apart from its increasing adoption among retail users, cryptocurrencies are also being used to influence politics. Fairshake, a well-funded political action committee (PAC) supported by prominent figures in the cryptocurrency industry, has set its sights on key Senate races with the aim of potentially shifting the balance of power in Congress. The PAC recently spent over $10 million to oppose a Democratic U.S. Senate candidate in California.
Furthermore, a majority of US voters (73%) believe that US presidential candidates should possess an informed perspective on innovative technologies like artificial intelligence and cryptocurrency. Additionally, a recent report from Coinbase suggests that California voters who own cryptocurrencies are expected to have a significant impact on the 2024 elections.
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