Are 20% of Americans REALLY Into Cryptocurrency? The Shocking Reality!
This article is based on the piece titled “Crypto adoption in America” authored by JP Koning.
Unraveling the Numbers: The Deep Dive into American Cryptocurrency Ownership
You’ve probably heard about the “America Loves Cryptocurrency” campaign sponsored by Coinbase, the largest cryptocurrency exchange in the US. In a bid to amplify the influence of cryptocurrency holders, Coinbase asserted that a whopping 52 million American adults, representing 20% of the adult population, are proud crypto owners. If true, this would mean crypto users would wield significant voting power. But is there truth to this claim? Let’s decipher.
1. SDCPC: The Forefather of US Payment Surveys
The Survey and Diary of Consumer Payment Choice (SDCPC), an initiative by the US Federal Reserve, stands as a long-standing data collection effort aimed at understanding the payment preferences and behaviors of American consumers. Starting its crypto inclusion as early as 2014, SDCPC began tracing cryptocurrency adoption, even though it’s just a speck in their vast pool of data.
Administered by the Understanding America Study group from the University of Southern California, SDCPC surveyed over 4,761 participants in its 2022 iteration. The survey includes both a questionnaire and a 3-day diary segment, the latter being labor-intensive but offering more accurate data by minimizing recall bias.
SDCPC’s revelation? In 2022, only 9.6% of American adults owned cryptocurrencies, a jump from 9.1% in 2021, and a dramatic leap from 0.6% in 2015. However, this figure is way below Coinbase’s 20% claim. Which number is closer to the truth?
2. The SHED: A Broader Perspective on Financial Behavior
Another insightful resource from the US Federal Reserve is the Survey of Household Economics and Decisionmaking (SHED). Unlike SDCPC which focuses on payments, SHED provides a broader view of the financial lives of American adults. Managed through the Ipsos KnowledgePanel, SHED accumulated responses from 11,667 participants in 2022.
It was only in 2021 that SHED started incorporating cryptocurrency-related questions. The findings? 10% of Americans had “used” cryptocurrency in 2022 (defined as buying, holding, paying with, or transferring it). This was a decline from 12% in 2021. Furthermore, Americans who held crypto purely for investment reasons dropped from 10% to 8% in 2022. These findings align with SDCPC’s data, discrediting Coinbase’s lofty claim.
3. A Fresh Perspective from Nielsen Homescan
The next reliable trove of crypto adoption data comes from a quarterly survey by Nielsen Homescan, spearheaded by a quartet of economic and financial researchers. With a response rate of 20–25%, this implies data from 15,000 to 25,000 respondents.
Weber, Candia, Coibion, and Gorodnichenko concluded that by the end of 2022, 12% of households owned cryptocurrencies, a trend evident in the graph showcasing the uptick over time.
4. Pew Research Center’s Broad Lens
A study by the Pew Research Center in March 2023, involving 10,701 participants, discovered that 17% of American adults had “invested, traded, or used” cryptocurrency. Among these, 69% confirmed current ownership, placing the crypto ownership rate at around 11–12% in 2023. This closely mirrors the findings from the Federal Reserve and the Weber group but significantly deviates from Coinbase’s statement.
5. A Canadian Cross-Check
Considering the cultural and geographical similarities between Canada and the US, Canadian data serves as an interesting cross-reference. In Canada’s Bitcoin Omnibus Survey (BTCOS), managed by Ipsos, a 2022 study of 1,997 Canadians revealed a 10% crypto ownership rate. A separate survey by the Ontario Securities Commission found that 13% of Canadians owned some form of cryptocurrency in 2022.
Conclusion: The Reality vs. The Hype
The extensive surveys mentioned above, be it from the US Federal Reserve, Nielsen Homescan, or the Pew Research Center, predominantly hover around the 10% mark for crypto ownership. While Coinbase’s assertion may have sparked intrigue, a deeper dive into the data uncovers a more nuanced truth.
Keywords: Cryptocurrency, Coinbase, American crypto ownership, SDCPC, SHED, Nielsen Homescan, Pew Research Center, US Federal Reserve, BTCOS
