The Fed’s 2022 U.S. Household Economic Well-being Index Shows that Americans Holding or Using Cryptocurrencies Dropped from 11% in 2021 to 8% in 2022 report – Released this month.
The Fed attributed the decline in crypto holdings and usage to the fall in digital asset prices last year.
However, the percentage of Americans trading cryptocurrencies has not changed since 2021. Only 3% of respondents said they had used cryptocurrencies for financial transactions in the 12 months prior to the survey. This highlights that using cryptocurrencies for trading is less common than holding cryptocurrencies. investment.
According to the survey, 2% of respondents used cryptocurrency to make purchases or payments, and 2% used cryptocurrency to send money to friends and family.
Respondents cited three main reasons for transacting cryptocurrencies: transferring funds more quickly, privacy of transactions, and whether individuals or businesses receiving funds prefer cryptocurrencies. .
The Fed said individuals with a high financial risk appetite are more likely to use cryptocurrencies for investing and trading. The results showed that a quarter of those with high risk tolerance used cryptocurrencies in the previous year, compared to just 4% of those who did not take any financial risks.
Cryptocurrency use varied according to demographics and socioeconomic factors
According to the report, cryptocurrency use was more common among young people and men, both for investing and trading.
Aside from age and gender, various factors such as income, race and ethnicity influence whether cryptocurrencies are used as an investment or used for trading. For example, high-income earners earning more than $100,000 a year were more likely to invest in cryptocurrencies than low-income earners.
However, individuals earning less than $25,000 a year were more likely to use cryptocurrencies for transactions than higher-income individuals.
Additionally, the study showed that Asians in the United States are more likely to hold cryptocurrencies as an investment than other ethnicities. Black and Hispanic respondents, on the other hand, were more likely to use cryptocurrencies for transactions than whites and Asians.
The survey found that 5% of unbanked Americans used cryptocurrencies in their transactions, compared to 3% of those with bank accounts. Regardless of bank account holder, 8% of respondents who used non-bank check cashing or money orders made cryptocurrency transactions, compared to 2% of those who did not.
The Fed concluded:
“…use of cryptocurrencies in financial transactions remained very low, even among groups likely to use cryptocurrencies in this manner.”
But Sebastien Derivaux, founder of Steakhouse Financial, said: I got it:
“8% penetration of transaction usage in target group is very strong in its early days and lack of UX. Or is the US banking system really bad?”
