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.
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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