Americans stay largely skeptical about the reliability and safety of cryptocurrency, according to
a survey from the Pew Research Center. Over six-in-ten (63%) report low confidence in current cryptocurrency investment, trading, and usage approaches. This includes 30% of adults who express no confidence at all and 33% who report low confidence. Only 5% of Americans say they have high confidence in cryptocurrency, with 18% being somewhat confident. These figures closely align with Pew’s findings from a similar survey in March 2023, suggesting skepticism has remained steady.
DEMOGRAPHIC INSIGHTS: AGE AND EXPERIENCE WITH CRYPTOCURRENCY
The study reveals significant differences in cryptocurrency confidence among age groups and based on prior investment experience:
- Age Factor: Older adults are especially wary. Among those over 50, 71% express little or no confidence in crypto currency. In contrast, 55% of younger adults feel this way.
- Investment Background: Among those familiar with cryptocurrency but who haven’t invested, 82% report low confidence in its safety. Some even have no confidence. In contrast, only 39% of investors feel similarly. Conversely, 19% of cryptocurrency investors report high confidence in its reliability.
WHO USES CRYPTOCURRENCY IN THE U.S.?
Cryptocurrency has become more widely discussed. Yet, only 17% of American adults report ever using it. This figure has remained unchanged since 2021. The survey highlights notable demographic trends in cryptocurrency use, particularly related to age, gender, race, and income.
AGE AND GENDER TRENDS IN USAGE
- Young Men: 42% of men aged 18-29 report having used crypto currency. In comparison, only 17% of women in the same age group have used it.
- Ages 30-49: The trend holds for slightly older demographics. In this group, 36% of men have used crypto currency. Only 15% of women have used it.
RACIAL AND ETHNIC VARIATIONS IN CRYPTOCURRENCY USE
- Asian Adults: Highest usage at 28%.
- Black and Hispanic Adults: Roughly one-in-five report using cryptocurrency.
- White Adults: Reported the lowest usage at 14%.
INCOME AND CRYPTOCURRENCY ENGAGEMENT
- Upper-Income Households: 23% have invested in cryptocurrency.
- Middle-Income Households: 18% have invested.
- Lower-Income Households: Only 14% report using cryptocurrency.
CRYPTOCURRENCY RETENTION RATES DECLINE
While cryptocurrency remains a minority investment, most individuals who have invested still hold some form of cryptocurrency. Yet, retention rates have dropped since 2023:
- Currently Holding Cryptocurrency: 61% of past cryptocurrency users still hold it, down from 69% in 2023.
- No Longer Holding Cryptocurrency: 39% report having exited the market, up from 31% in 2023.
INCOME INFLUENCE ON CRYPTOCURRENCY RETENTION
- Lower-Income Households: 51% of users no longer hold cryptocurrency, compared to 32% of middle-income and 36% of upper-income households.
FINANCIAL IMPACT OF CRYPTOCURRENCY INVESTMENTS
Concerns about cryptocurrency’s financial impact persist. In 2023, the largest shares of investors (38%) reported worse-than-expected returns. Meanwhile, 37% felt their results were in line with expectations. Only 20% said their investments performed better than expected.
FINANCIAL IMPACT ON PERSONAL FINANCES
Despite some disappointing results, most Americans in 2023 said cryptocurrency investments had minimal impact on their overall finances:
- Neutral Financial Impact: 60% reported no significant effect.
- Positive Financial Impact: 20% reported an improvement.
- Negative Financial Impact: 19% reported a decline. College graduates and those with some college experience are more likely to report negative impacts. This is contrasted with those who have a high school education or less.
H2: When Did Americans Begin Using Crypto currency?
In 2023, Pew asked Americans when they first engaged with crypto currency:
- Recent Users: 16% started within the past year.
- Established Users: 74% first used it within the last one to five years.
- Early Adopters: Only 10% reported using crypto currency more than five years ago.
DEMOGRAPHICS OF RECENT CRYPTO CURRENCY ADOPTERS
The survey noted distinct patterns among recent adopters by race, ethnicity, and income:
- Race and Ethnicity: Black Americans (27%) were more likely to have started within the past year. Hispanic users followed with 21%. White users accounted for 12%.
- Income Trends: Lower-income households were more likely to have begun investing recently. Three-in-ten started within the last year. This is compared to around one-in-ten from middle- or upper-income households.