Who uses crypto?

Fed officials found that 13 percent of Americans who use cryptocurrencies for payments do not have bank accounts. Meanwhile, 6 percent of respondents do not use digital assets at all. In other words, if a consumer cannot be satisfied with a proper service from the banking sector, they are much more likely to resort to crypto transactions than not to be interested in digital assets at all.


Explaining such a trend is quite simple. After all, to use cryptocurrencies, having a device with an internet connection is enough, and mining coins can also be done for cash if desired. And once a person gets certain cryptocurrencies into their wallet, not only are they able to transfer and receive digital assets, but they can also participate in the decentralized finance industry.

In essence, it offers bank-like services in the form of loans, deposit analogues in the form of staking and more. At the same time, one would not have to wait for anyone's permission to use them, meaning that all current and future users of the platforms are equal to each other. Naturally, this attitude and guaranteed service - which cannot be said of banks - are attractive.


US Federal Reserve survey data in chart form

According to Decrypt sources, at least 12 per cent of Americans held or used cryptocurrencies like Bitcoin and Etherium last year. Crypto-enthusiasts are also much less likely to have retirement savings, meaning they are essentially not relying on government assistance in the long term. However, the level of retirement savings was about the same among people who do not use crypto (27 percent) and people who use it exclusively as an investment (29 percent of respondents).


Note that cryptocurrency lovers among US pension plan users may become markedly more numerous in the future. The reason for this is the possibility of investing part of one's salary for retirement savings in Bitcoin. Fidelity announced a similar product as part of its most popular 401(k) pension plan in late April 2022. You can read more about it here.


Notably, consumers using crypto-assets as investments tend to be wealthy. Here’s a rejoinder from the organisation’s representatives.

Those who hold cryptocurrency solely for investment purposes have a disproportionately high income, almost always have access to banking services and tend to have other retirement savings.

In other words, in many cases, crypto also becomes a tool for people to increase the amount of money they have, rather than a field for experimentation. That is, in essence, some investors have money to invest, but they don't need crypto for start-up capital.

The study found that 46 percent of crypto investors have an income of at least $100,000 per year. People with an income of less than $50,000 accounted for 29 percent of the total number of respondents, the sources said.

Bitcoin is the right choice!

Earlier this month, tough policies from the Federal Reserve’s Open Market Committee sent many markets – and both traditional and crypto markets – into freefall as the regulator announced a half-percent interest rate hike. This is a necessary measure to curb inflation, but it will put a lot of pressure on the stock market for a long time to come, experts say. Well, Bitcoin, which is dependent on major stock indices, may then be “doomed” to continue falling.

Although, as always, there is no point in thinking ahead in the case of cryptocurrencies. The digital asset market is completely unpredictable because of its high volatility and huge number of participants. However, it does have the advantage of decentralisation, i.e. independence from states, officials and bankers. With this in mind, it is likely that crypto will remain attractive to investors even in the event of major problems in traditional finance.

Cryptocurrency investor


We believe that the massive popularity of digital assets today should no longer come as a surprise. After all, crypto is decentralised and promising, and the niche continues to grow and new platforms emerge. And, since many of the coins have limited supply, or can even boast of deflationary turnover, in the current inflationary environment, it simply can't help but interest ordinary people who want to save their money.


You can get even more up-to-date news in our millionaires’ cryptochat. There, we will discuss other important news that affect the digital asset industry in one way or another.