Survey Findings
“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 Federal Reserve. The Survey of Household Economics and Decisionmaking (SHED) revealed that in 2023, approximately 18 million US adults reported using cryptocurrencies, marking a decrease from previous years. The survey indicated that in the 12-month period leading up to October 2023, 7% of US adults surveyed used cryptocurrencies, down from 10% in 2022 and 12% in 2021.
- Only 1% of crypto users mentioned using it for financial transactions or sending money, showing a 50% decrease from the previous year.
- On the other hand, 7% of respondents stated that they purchased or held cryptocurrencies as an investment.
“These findings significantly differ from Coinbase’s claim that 52 million Americans own cryptocurrencies,”
Regarding reasons for using crypto for financial transactions, nearly 30% of respondents cited that it was because the recipient preferred cryptocurrencies, with a lack of trust in banks being the least mentioned reason. The survey also highlighted that individuals with annual incomes of $100,000 or more were more likely to use cryptocurrencies for any purpose.
Demographics and Usage Patterns
The survey revealed that millennials (aged 30 to 44) made up the largest group of crypto users, followed closely by Generation Z adults (aged 18 to 29). Men were three times more likely to use cryptocurrencies than women. Black and Hispanic adults were more commonly involved in crypto usage for financial transactions, while Asian adults were the primary demographic using crypto as an investment. On the other hand, 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.
Aside from retail users, cryptocurrencies are increasingly playing a role in politics. Fairshake, a well-funded political action committee (PAC) supported by key figures in the cryptocurrency industry, has focused on key Senate races to potentially influence the balance of power in Congress. They recently spent over $10 million opposing a Democratic U.S. Senate candidate in California. A significant portion of US voters believe that presidential candidates should have a good understanding of innovative technologies like artificial intelligence (AI) and cryptocurrency. California voters who own cryptocurrencies are expected to play a crucial role in the 2024 elections, according to a report from Coinbase.
