The Federal Reserve’s latest annual household survey reveals a significant decrease in the number of U.S. adults owning or using cryptocurrency. The “Household Economy and Decision Making Survey” (SHED), published by the Fed on May 21, indicates that only 7% of U.S. adults reported using crypto in the previous 12 months, down from 10% in 2022 and 12% in 2021.
Why Are Fewer People Using Crypto?
A mere 1% of respondents said they used cryptocurrency for payments or money transfers, a significant drop from the previous year. Meanwhile, 7% of participants purchased or held crypto as an investment. This stark contrast brings into question the veracity of Coinbase’s claim that 52 million Americans own cryptocurrency, a figure for which Coinbase has yet to provide clarification.
What Are the Survey Details?
Of the small percentage using crypto for transactions, nearly 30% did so because the recipient preferred it, with mistrust in banks being the least common reason. Interestingly, the survey reveals that individuals earning over $100,000 annually are more inclined to use cryptocurrency than those with lower incomes.
The survey also highlights demographic trends: Millennials aged 30 to 44 constitute the largest group of crypto users, followed by Generation Z adults aged 18 to 29. Men are three times more likely than women to use cryptocurrency. For financial transactions, Black and Hispanic adults are the most frequent users, while Asian adults primarily use crypto as an investment.
Key Takeaways from the Survey
– Millennials are the largest group of crypto users, followed by Gen Z.
– Men are significantly more likely to use crypto than women.
– High-income individuals ($100,000+ annually) are more likely to use crypto.
– Black and Hispanic adults frequently use crypto for financial transactions.
– Asian adults are prominent crypto investors.
These insights provide a detailed look into the shifting landscape of cryptocurrency usage in the United States.
