The number of United States adults reporting crypto ownership or usage has seen a significant decline, according to the latest annual household survey conducted by the Fed.
The survey, known as the Survey of Household Economics and Decisionmaking (SHED), indicates that approximately 18 million US adults reported using cryptocurrencies in 2023, representing a drop from previous years.
In the 12-month period leading up to October 2023, the survey found that 7% of the surveyed US adults reported using cryptocurrencies, down from 10% in 2022 and 12% in 2021.
Only 1% Used Crypto for Financial Transactions: Fed Survey
Among those who reported using crypto, only 1% stated that they used it for financial transactions or sending money, which is a 50% decrease from the previous year.
On the other hand, 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.
These findings from the Federal Reserve survey significantly differ from Coinbase’s claim that 52 million Americans own cryptocurrencies.
Coinbase, a prominent cryptocurrency exchange, did not provide any response on how it arrived at this figure.
There has been a lot of talk on here recently about “52 million Americans” owning cryptocurrency, with this stat seemingly originating from Coinbase.
Yesterday, the Fed released their annual survey of US household economics: https://t.co/awRzPR3jHZ
It found that only 7% of… pic.twitter.com/HMgnhLwJl4
— Jake Donoghue (@JDonoghueAuthor) May 22, 2024
The survey shed light on the reasons behind crypto usage for financial transactions.
Nearly 30% of 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 also revealed that individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrencies for any reason.
Regarding demographics, millennials (aged 30 to 44) constituted the largest group of crypto users, closely followed by Generation Z adults (aged 18 to 29).
Additionally, men were three times more likely to use cryptocurrencies compared to women.
The survey highlighted that 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.
Conducted in October 2023, the survey included 11,488 US adults aged 18 and older.
Crypto’s Influence in Politics Increases
Aside from its growing adoption among retail users, cryptocurrencies are also used to influence politics.
A well-funded political action committee (PAC) backed by prominent figures in the cryptocurrency industry has set its sights on key Senate races, with the goal of potentially shifting the balance of power in Congress.
The PAC, called Fairshake, recently spent over $10 million successfully opposing a Democratic U.S. Senate candidate in California.
As reported, approximately 73% of US voters believe that US presidential candidates should have an informed perspective on innovative technologies like artificial intelligence (AI) and cryptocurrency.
Likewise, a recent report from Coinbase claimed that California voters who own cryptocurrencies are expected to have a significant impact on the 2024 elections.
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