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The level of cryptocurrency adoption in the United States has grown significantly over the past two years. Americans have learned how to invest in crypto and use these assets for their daily needs, such as shopping or sending funds to friends and family.
The US Federal Reserve Board provided data on cryptocurrencies in the Economic Well-Being of US Households in the 2021 report. The report involved a survey of 11,000 people interviewed between October and November last year.
Federal Reserve survey on crypto
The report showed that financial well-being was at the highest levels since the institution started reporting. 78% of adults in the US were living comfortably financially, a 3% increase over the past three years. The report further said that 68% of Americans could offset a $400 emergency expense through cash or its equivalent.
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The report also looked at cryptocurrency usage within the US for the first time. With crypto marketing activities reaching record highs globally, the US is slowly turning into a crypto hub. The Fed said that 12% of adults in the US held or used cryptocurrencies in 2020, while 11% of this number held crypto for investments. 2% used crypto to make purchases, while 1% sent it to family and friends.
The report further noted that investors holding crypto had a relationship with the traditional finance sector, and they had other retirement savings. 46% of crypto investors had an annual income of at least $100,000, while 89% of the investors that were not retired had retirement savings. 29% of people had an income below $50,000.
The survey results further showed that 13% of people who invested in crypto lacked a bank account. 27% of the people who used crypto to settle transactions did not have credit cards. A quarter of the US residents who used crypto to transact lacked a high school diploma as per the survey results.
Crypto investments in the US
The United States has become one of the largest hubs for cryptocurrency mining and trading. The growth of social trading platforms in the country has stirred this growth, with some of the largest exchanges such as Binance, Coinbase and NFT operating in the country.
Despite this growth, the US Securities and Exchange Commission (SEC) has been hesitant to introduce a regulatory framework that will govern the use of cryptocurrencies. Despite several applications, the commission has failed to approve a Bitcoin exchange-traded fund (ETF).
The rising level of inflation in the US can also make more people buy Bitcoin and other low cap cryptos in the coming months. This will increase the number of people who hold and use cryptocurrencies.
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