Understanding the Decline in Crypto Ownership Among US Adults 📉
Recent findings from the Survey of Household Economics and Decisionmaking (SHED) by the Federal Reserve reveal a notable drop in the number of United States adults reporting crypto ownership or usage. Let’s delve into the key takeaways and implications of this decline for the cryptocurrency market:
Key Insights from the Fed Survey 🔍
- The survey indicates that approximately 18 million US adults reported using cryptocurrencies in 2023, showing a decrease from previous years.
- In the 12-month period leading up to October 2023, only 7% of surveyed US adults reported using cryptocurrencies, down from 10% in 2022 and 12% in 2021.
Usage for Financial Transactions Plummeted 📉
- Among crypto users, only 1% stated they used it for financial transactions, marking a 50% decrease from the previous year.
- In contrast, 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.
Divergence in Data 📊
- The survey’s findings starkly contrast with Coinbase’s claim about the number of US adults who own cryptocurrencies.
- While Coinbase reported a higher figure, no clarity was provided on how this data was obtained.
Factors Influencing Crypto Usage Patterns 📈
The survey also sheds light on the reasons behind crypto usage for financial transactions:
Preferences and Income Levels Matter 💸
- Nearly 30% of respondents cited the recipient’s preference for cryptocurrencies as a reason for their usage in financial transactions.
- Individuals with annual incomes of $100,000 or more were more inclined to use cryptocurrencies for any purpose.
Demographics and Usage Trends 👥
- Millennials (30-44) and Generation Z adults (18-29) constituted the largest groups of crypto users, with men being three times more likely to use cryptocurrencies than women.
- Black and Hispanic adults were more commonly engaged in crypto usage for financial transactions, while Asian adults primarily used crypto for investment purposes.
- In contrast, White adults were the least likely demographic to use cryptocurrencies for any reason.
Impact of Crypto in Politics 🗳️
Besides retail adoption, cryptocurrencies are increasingly making their mark in the political landscape:
Political Action Committee’s Influence 🌟
- A well-funded PAC, Fairshake, supported by key figures in the cryptocurrency industry, is focusing on key Senate races to potentially influence the balance of power in Congress.
- Fairshake recently spent over $10 million opposing a Democratic U.S. Senate candidate in California.
Crypto’s Role in Election Dynamics 🗳️
- According to a report, a significant percentage of US voters believe that presidential candidates should be well-informed about innovative technologies like cryptocurrency and AI.
- California voters who own cryptocurrencies are expected to play a pivotal role in the upcoming 2024 elections, as per Coinbase’s recent findings.
Hot Take: Navigating the Evolving Crypto Landscape 🚀
As the crypto ownership landscape undergoes shifts and crypto’s influence extends into politics, staying informed about emerging trends and factors shaping the market becomes essential for all crypto enthusiasts.
Sources:
1. Federal Reserve: Survey of Household Economics and Decisionmaking (SHED)
2. Twitter: Jake Donoghue
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