The US Federal Reserve’s recent data revealed that cryptocurrency usage and ownership among American adults dipped, with only 7% reporting any use of cryptocurrency within the 12 months leading up to October 2023. This marks a decrease from 10% in 2022 and 12% in 2021.
Additionally, merely 1% of adults said they had sent or received money using cryptocurrencies, a 50% decrease from the year before, according to the Federal Reserve’s Survey of Household Economic and Decision Making (SHED).
The Wall Street Journal reported that the Federal reserve’s figure starkly contrasts with the 52 million Americans that Coinbase has claimed to own crypto, according to the US Federal Reserve. The authority has accused Coinbase of not providing a methodology for research on crypto adoption in the US.
The 11th annual Survey of Household Economics and Decisionmaking (SHED) offers insight into the financial well-being of U.S. adults & their families & provides important information about how people are faring in the economy: (1/4) https://t.co/w77PEADgmo https://t.co/rHT05oeVxn
— Federal Reserve (@federalreserve) May 21, 2024
The Federal Reserve revealed that its survey included responses from 11,488 American adults aged 18 and older, and was weighted against the US Census Bureau’s March 2023 current population survey of 258 million adults.
Meanwhile, the UAE ranked fifth for crypto adoption, with 30.4% of the population holding crypto and a high search volume of 1,415.2 per 100,000. According to crypto.com, cryptocurrencies have been rising in popularity in recent years, with crypto ownership growing from 432 million to 580 million in 2023 alone.
“Individuals With Annual Incomes of $100,000 or More Were More Likely To Use Crypto”
Cryptocurrency usage among different demographics also revealed that individuals with annual incomes of $100,000 or more were more likely to have used or owned cryptocurrency. Furthermore, Millennials (aged 30 to 40) and adult Gen Zs (aged 20- 30) constituted the largest share of crypto users, with men being three times more likely to use crypto than women.
Nearly 30% of crypto financial transactions cited the recipient’s preference for crypto as the reason. Other reasons for using crypto included the speed of sending funds and privacy concerns, while the least cited reason was a lack of trust in banks, according to the data.
The survey also highlighted racial and ethnic differences in crypto usage: Black and Hispanic adults were the most common users for financial transactions, whereas Asian adults were the largest demographic using crypto as an investment. Conversely, White adults were the least likely to use crypto for any reason.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.