7% of US Adults Use Crypto, Decline from Previous Years

Decline in Crypto Ownership Among US Adults Revealed in Fed Survey

The latest annual household survey conducted by the Federal Reserve shows a significant decrease in the number of United States adults reporting crypto ownership or usage. The Survey of Household Economics and Decisionmaking (SHED) indicates that approximately 18 million US adults reported using cryptocurrencies in 2023, down from previous years.

Key Findings from the Survey:

• 7% of surveyed US adults reported using cryptocurrencies in the 12-month period leading up to October 2023.
• Only 1% of crypto users stated using it for financial transactions, a 50% decrease from the previous year.
• 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.

Demographic Insights:

The survey revealed that individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrencies for any reason. Millennials and Generation Z adults constituted the largest groups of crypto users, with men being three times more likely to use cryptocurrencies compared to women.

Usage Patterns by Ethnicity:

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.

Crypto’s Influence in Politics

Aside from retail users, cryptocurrencies are increasingly playing a role in politics. A well-funded political action committee (PAC) named Fairshake, backed by figures in the crypto industry, is targeting key Senate races to potentially influence the balance of power in Congress.

Political Impact of Cryptocurrencies:

• Fairshake recently spent over $10 million opposing a Democratic U.S. Senate candidate in California.
• 73% of US voters believe that presidential candidates should understand technologies like AI and cryptocurrency.
• California voters who own cryptocurrencies are expected to have a significant impact on the 2024 elections.