The latest annual household survey conducted by the Fed reveals a notable decrease in the number of United States adults who claim ownership or usage of cryptocurrency.
According to the Survey of Household Economics and Decisionmaking (SHED), approximately 18 million US adults reported cryptocurrency usage in 2023, marking a decline from previous years.
Over the 12-month period ending in October 2023, the survey noted that 7% of surveyed US adults reported cryptocurrency usage, down from 10% in 2022 and 12% in 2021.
Only 1% Used Crypto for Financial Transactions: Fed Survey
Only 1% of those who reported using cryptocurrency indicated using it for financial transactions or money transfers, reflecting a 50% decrease compared to the prior year. Conversely, 7% of respondents cited purchasing or holding cryptocurrencies as an investment.
These insights, derived from the Federal Reserve survey, sharply contrast with Coinbase’s assertion that 52 million Americans possess cryptocurrencies. Notably, Coinbase, a prominent cryptocurrency exchange, has not provided any explanation regarding the basis of this figure.
The survey also delved into the motivations behind cryptocurrency usage for financial transactions. Approximately 30% of respondents who employed crypto for such purposes cited the preference of the recipient for cryptocurrencies.
Interestingly, a lack of trust in banks was the least frequently cited reason for cryptocurrency usage.
The survey findings also unveiled that individuals earning $100,000 or more annually were more inclined to utilize cryptocurrencies for various purposes.
In terms of demographics, millennials (aged 30 to 44) emerged as the predominant group of crypto users, closely trailed by Generation Z adults (aged 18 to 29).
Moreover, men exhibited three times greater likelihood of cryptocurrency usage compared to women.
The survey underscored that Black and Hispanic adults were more prevalent in cryptocurrency usage for financial transactions, whereas Asian adults constituted the largest demographic engaging in crypto as an investment.
Conversely, White adults demonstrated the lowest propensity for cryptocurrency usage across all reasons.
Conducted in October 2023, the survey encompassed 11,488 US adults aged 18 and above.
Crypto’s Influence in Politics Increases
In addition to its increasing popularity among retail users, cryptocurrencies are becoming a tool for political influence.
A well-financed political action committee (PAC), supported by prominent figures in the cryptocurrency industry, is targeting key Senate races with the aim of potentially altering the balance of power in Congress.
Named Fairshake, this PAC recently invested over $10 million to effectively oppose a Democratic U.S. Senate candidate in California.
According to reports, approximately 73% of US voters believe that presidential candidates should be knowledgeable about cutting-edge technologies such as artificial intelligence (AI) and cryptocurrency.
Similarly, a recent Coinbase report suggested that California voters who own cryptocurrencies are poised to exert a significant influence on the outcome of the 2024 elections.
