New Fed Survey Finds Decrease in Crypto Usage Among US Adults
According to the latest annual household survey conducted by the Federal Reserve (Fed), there has been a significant decline in the number of United States adults reporting crypto ownership or usage.
The survey, known as the Survey of Household Economics and Decisionmaking (SHED), reveals that approximately 18 million US adults used cryptocurrencies in 2023, marking a drop from previous years.
In the 12-month period leading up to October 2023, the survey found that 7% of the US adults surveyed reported using cryptocurrencies, down from 10% in 2022 and 12% in 2021.
The survey also highlighted that only 1% of those who reported using crypto stated that they used it for financial transactions or sending money, representing a 50% decrease from the previous year. On the other hand, 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.
These findings contradict Coinbase’s claim that 52 million Americans own cryptocurrencies. Coinbase, a prominent cryptocurrency exchange, did not provide any response regarding how it arrived at this figure.
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. Interestingly, a lack of trust in banks was the least cited reason.
Furthermore, 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, millennials (aged 30 to 44) comprised the largest group of crypto users, followed closely by Generation Z adults (aged 18 to 29). Additionally, men were three times more likely to use cryptocurrencies compared to women. The survey also 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.
The survey, conducted in October 2023, included 11,488 US adults aged 18 and older.
Crypto’s Influence in Politics Grows
Apart from its increasing adoption among retail users, cryptocurrencies are also being utilized to influence politics.
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, named Fairshake, recently spent over $10 million to successfully oppose a Democratic U.S. Senate candidate in California.
According to reports, approximately 73% of US voters believe that US presidential candidates should have an informed perspective on innovative technologies like artificial intelligence (AI) and cryptocurrency. Similarly, 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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