According to the latest Federal Reserve’s annual household survey, the number of US adults who said they own or have used cryptocurrency dropped considerably. The survey, known as the Survey of Household Economics and Decisionmaking (SHED), reported that about 18 million US adults reported using crypto in 2023—a decline from prior years.
Also Read: Federal Reserve’s key inflation metric goes bearish on US economy
The survey indicated that from 12 months to October 2023, about 7% of U.S. adults said they had engaged in cryptocurrency transactions, a decrease from 10% in 2022 and 12% in 2021.
SHED Reveals Decline in Crypto Transactions and Investment
Of the respondents who claimed to have engaged in crypto, only 1% said they used it to buy goods and services or to transfer money. That’s a 50% decline compared to the previous year. It is important to know that only 7% of the respondents indicated that they have bought or owned cryptocurrencies for investment purposes.
These findings from the Federal Reserve are in sharp contrast with Coinbase’s claim that 52 million Americans own cryptocurrencies. Coinbase failed to explain how it arrived at the figures.
Survey Reveals Demographic Trends in Crypto Usage
The survey also revealed some demographic characteristics of crypto usage. People with an annual household income of $100,000 and above were more likely to have used cryptocurrencies for any purpose. The survey further showed that the most engaged crypto users were millennials aged 30-44, while Gen Z adults aged 18-29 were the second most involved. The same survey found that men are three times more likely to use crypto than women.
Also Read: Federal Reserve is delaying interest rate cuts until 2025
In terms of race, Black and Hispanic adults were more likely to be actively involved in using cryptocurrency for transactions. Asian adults were the biggest group interested in using crypto as an investment. In contrast, White adults were the least likely to use cryptocurrencies for any purpose
Politics Influence Crypto
Besides retail adoption, cryptocurrencies are also involved in the political system. There’s a political action committee (PAC) called Fairshake, which is funded by influential people in the crypto sphere. Fairshake has focused on the Senate to change the balance in Congress. Lately, Fairshake used over $10 million to challenge a Democratic U.S. Senate candidate in California.
🚨NEW: Fairshake super PAC has raised over $85 million to support political candidates who endorse #crypto and #blockchain technology in the upcoming November election.
— Eleanor Terrett (@EleanorTerrett) February 6, 2024
A Coinbase report revealed that holders of cryptocurrencies in California will likely have a vital impact in the upcoming U.S. elections. It highlights the growing integration of crypto in politics, where 73% of US voters expect presidential candidates to properly understand modern advancements such as AI and cryptocurrency.
Cryptopolitan reporting by Damilola Lawrence
