Close to one in every eight United States adults owned cryptocurrency in 2021, according to a survey published by the Federal Reserve on 23rd May 2022.
92% of All Crypto Holders Targeted Price Speculation
In the central bank’s Economic Well-Being of the United States Households in 2021 report, the Fed indicated that 12% of the 11,000 participating U.S. adults held crypto coins. In 2021, the total market cap for all crypto assets shot from USD 763 billion to USD 2.9 trillion by November before crashing to USD 1.3 trillion in the first five months of 2022.
Only 2% of the U.S. adults, about 1/6th of those holding crypto assets, used it for regular buying of stuff. Also, only 1% used it to send money to family or friends.
Of the people who used cryptos to make payments for goods and services, 13% lacked bank accounts, which is twice the overall population’s average of 6%. The report also showed that 27% of them did not have retirement savings.
The Fed further established that poorer Americans were likely to use cryptos for making payments when buying things. Notably, those who held cryptos for investment goals were disproportionately wealthy: 25% earning USD 5,000 – USD 100,000, and 46% rocking six-figure income.
This study is the first by the Fed about cryptos in the nation. Last year, Chainanalysis, a blockchain intelligence firm, pointed out a rapid growth in the adoption of cryptos. When releasing its 2021 Global Crypto Adoption Index report, it said that crypto digital use had risen by 880% across the globe.
The report further showed that the United States ranked eighth globally on the adoption of cryptos. Vietnam topped the adoption list, with India, Pakistan, Ukraine, Kenya, and Nigeria following in that order.
According to Chainanalysis, the fall in the adoption rates in the U.S. is mainly attributed to the reduction of peer-to-peer exchange volumes.