The Fed Reserve’s annual study about Americans’ finances shows that they are more likely to use cryptocurrency as a way of investment than as a way to pay for things.
The Fed report shows that the crypto economy is booming
The Economic Well-Being of US Households in 2021 report is based on the ninth annual Survey of Household Economics and Decisionmaking, which was sent out by the Federal Reserve Board in October and November of 2021. The next study was the first one to look at how people use cryptocurrency.
The report says that in 2021, 12% of adults own or use cryptocurrencies. According to the report, crypto is mostly used as an investment tool, with only 2% of adults using it to buy things and 1% using it to send money to friends or family.
The report said that Americans don’t care much about crypto as a form of currency. Most of them are investors, not traders, and only 3% of the people surveyed said they had sent or received cryptocurrency in the past year. On the other hand, 11% of them had put their money into cryptocurrency. 46% of the time, pure-play investors made $100,000 or more.
It was also said that people with low incomes were more likely to use cryptocurrency to make purchases. Thirteen percent of the people who did these transactions with cryptocurrency did not have a regular bank account, and 27 percent did not have a credit card. Nearly six out of ten people who use cryptocurrency for transactions make less than $50,000, while only 24% make more than $100,000.
Crypto Helps Bankless People
According to the survey, 6% of people in the United States don’t have a bank account. People who are black (13%) and Hispanic (11%) are also less likely to have a bank account than adults in general.
Proponents of cryptocurrencies say that they make it easy for people who don’t have voting rights or access to banks to use sophisticated payment systems. Even in the United States, which has a very advanced banking system, the Fed research may back up this idea.
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