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>>A recent Federal Reserve survey revealed that approximately 7% of US adults currently engage in cryptocurrency activities, a decline from previous years.

A recent Federal Reserve survey revealed that approximately 7% of US adults currently engage in cryptocurrency activities, a decline from previous years.

crypthub

1/24/2025, 11:52:13 AM

Decline in Crypto Ownership and Usage Among U.S. Adults

The latest Federal Reserve survey, the Survey of Household Economics and Decisionmaking (SHED), indicates a noticeable drop in the number of United States adults reporting crypto ownership or usage, with approximately 18 million adults using cryptocurrencies in 2023.

Falling Crypto Adoption Rates

The survey reveals that only 7% of U.S. adults used cryptocurrencies during the 12-month period leading up to October 2023, a significant decrease from the 10% reported in 2022 and 12% in 2021. Among crypto users, just 1% utilized it for financial transactions or money sending, marking a 50% drop from the previous year.

Investment vs. Financial Transactions

While 7% of respondents acknowledged purchasing or holding cryptocurrencies as an investment, the survey sheds light on motivations behind crypto usage for financial transactions, with approximately 30% citing the recipient's preference for cryptocurrencies as a primary reason. Notably, lack of trust in banks emerged as a less common factor driving crypto adoption.

Income, Demographics, and Crypto Usage

The Federal Reserve survey highlights a correlation between income and crypto usage, with individuals earning $100,000 or more more likely to have used cryptocurrencies. Millennials (aged 30-44) and Generation Z adults (aged 18-29) constitute the largest groups of crypto users, while men are three times more likely to use cryptocurrencies than women. The survey also reveals racial disparities in crypto usage, with Black and Hispanic adults more likely to utilize crypto for financial transactions and Asian adults being the primary demographic using crypto as an investment.

Crypto in Political Campaigns

The influence of cryptocurrencies extends beyond finance, as a political action committee (PAC) backed by cryptocurrency industry leaders has targeted key Senate races, aiming to shape Congress's power dynamics. This PAC recently spent over $10 million against a Democratic U.S. Senate candidate in California.

Public Perception of Cryptocurrency in Elections

A majority of U.S. voters (73%) believe that presidential candidates should possess knowledge about innovative technologies like artificial intelligence and cryptocurrency, suggesting public interest in their integration into political discourse. A Coinbase report further predicts that California voters who own cryptocurrencies will wield significant influence in the 2024 elections.