The latest annual household survey conducted by the Federal Reserve has unveiled a notable decline in the number of United States adults reporting ownership or usage of cryptocurrencies. Let's delve into the key findings of the survey and their implications for the crypto landscape.

Survey Highlights

According to the Survey of Household Economics and Decisionmaking (SHED), approximately 18 million US adults reported using cryptocurrencies in 2023, marking a decline from previous years. Specifically, the survey found that 7% of US adults reported using cryptocurrencies in the 12-month period leading up to October 2023, down from 10% in 2022 and 12% in 2021.

Usage Patterns

Among those who reported using crypto, only 1% stated using it for financial transactions or sending money, indicating a 50% decrease from the previous year. On the contrary, 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.

Discrepancies in Reported Figures

These findings from the Federal Reserve survey sharply contrast with Coinbase's claim that 52 million Americans own cryptocurrencies. Coinbase, however, did not provide any clarification on how it arrived at this figure.

Demographic Trends

The survey highlighted several demographic trends among crypto users. Individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrencies for any reason. Millennials (aged 30 to 44) constituted the largest group of crypto users, followed by Generation Z adults (aged 18 to 29). Additionally, men were three times more likely to use cryptocurrencies compared to women.

Ethnic and Racial Disparities

Black and Hispanic adults were more commonly engaged in crypto usage for financial transactions, while Asian adults were the largest demographic using crypto as an investment. Conversely, White adults were the least likely to use cryptocurrencies for any reason.

Political Influence of Cryptocurrencies

Aside from its adoption among retail users, cryptocurrencies are increasingly influencing politics. Fairshake, a political action committee (PAC) backed by prominent figures in the crypto industry, has set its sights on key Senate races, aiming to potentially shift the balance of power in Congress. The PAC recently spent over $10 million opposing a Democratic U.S. Senate candidate in California.

Conclusion

The Federal Reserve survey provides valuable insights into the evolving landscape of cryptocurrency usage among US adults. While the survey indicates a decline in crypto adoption, the influence of cryptocurrencies in politics is on the rise, signaling a complex and dynamic relationship between digital assets and societal dynamics. As the crypto market continues to evolve, understanding these trends is crucial for policymakers, investors, and industry stakeholders alike.