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Fed claims Americans are shunning cryptos, questions Coinbase figures. In January, the crypto exchange claimed that 52 million Americans owned crypto assets. Who to believe, between the Fed’s reserve and Coinbase’s unbridled enthusiasm?
Cryptocurrencies, a passing idyll for Americans?
Is crypto-mania losing steam among our friends across the Atlantic, fearing a replay of the FTX scenario? In any case, this is what The Fed’s latest survey on the economy and household decision-making, released on May 21. A cruel study that only reveals that 7% of US adults have used cryptocurrencies in the 12 months to October last year. A number in free fall compared to 12% by 2021 and 10% by 2022.
In this changing landscape, crypto adventurers are rare: only 1% of adults still dare to use crypto for payments or money transfers. A percentage reduced by half compared to the previous year. Among these bold people, almost 30% do so because their interlocutor prefers this methodwhile lack of trust in the banks is the least cited reason.
However, the rich seem to appreciate this digital currency: them earn over $100,000 a year are the most likely to invest in bitcoin (BTC) and others. THAT Millennials (ages 30-44) are at the head of the queue, closely followed by Generation Z (18-29 years). To notice it men are three times more likely to delve into the crypto universe than women.
THAT ethnic inequalities is also marked: the black and Hispanic adults favor financial transactions in crypto, while Asians prefer cryptocurrencies as an investment. White adults, for their part, seem least interested in this new digital economy.
This survey, conducted in October 2023 among 11,488 adultsand weighted to represent the 258 million American adults, paints a nuanced portrait of the cryptocurrency craze.
Fed and Coinbase numbers: A big crypto gap
The Fed’s numbers are a far cry from Coinbase’s 2023 cryptocurrency survey. In fact, Coinbase painted a much rosier picture: nearly one in five Americans owns cryptoor 52 million people.
That’s what Coinbase claims in its exuberant enthusiasm 87% of Americans want a reform of the financial system, finds it unfair and biased in favor of the powerful. Echoing this, 63% of cryptocurrency owners think so blockchain technology can democratize the economy.
But the Fed, for its part, points out that only 1% use cryptocurrencies for transactions, mainly because their recipients prefer them.
According to Coinbase, younger generations are the most avid crypto enthusiasts: 72% of 18-34 year olds believe that digital assets represent the economy of the future.
Coinbase advocates clear legislation to regulate cryptoemphasizes it 87% of Fortune 500 executives say clear rules are important to maintain American leadership. On the other hand, the Fed remains discreet on the subject, content to note a decline in the use of cryptos.
The two studies thus offer contrasting visions of the crypto universe: optimistic and reformist at Coinbase, cautious and realistic at the Fed.
It remains to be seen which of the two will ultimately convince lawmakers, who are currently very focused on the FET21 law, and citizens.
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The blockchain and crypto revolution is underway! And the day when the effects will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The comments and opinions contained in this article are the author’s alone and should not be considered investment advice. Do your own research before making investment decisions.
