20 Percent Americans Own Crypto Owing to ‘Frustrating’ Financial Inequality: Study

Business intelligence firm Morning Consult, that conducted the study on behalf of Coinbase, surveyed over 2,000 US nationals.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 28 February 2023 16:53 IST

20 Percent Americans Own Crypto Owing to ‘Frustrating’ Financial Inequality: Study

Photo Credit: Unsplash/ Ewan Kennedy

The Gen Z as well as the Millennial population especially engage with crypto

Highlights

Over 2,000 residents in the US were surveyed for this study
80 percent of the respondents worried about financial inequality
BTC, ETH top two cryptocurrencies in the US

Around 20 percent population in the US currently hold cryptocurrencies. The reason why Americans are investing in crypto assets is to challenge the financial inequality that prevails in the US. The finding was published in a study commissioned by the Coinbase crypto exchange. Over 36 percent of the total crypto users belong to the Gen Z population that comprises of people born between 1997 to 2013. On the other hand, millennials, born between 1981 and 1996 make for 30 percent of the total crypto holders in the US.

Business intelligence firm Morning Consult, that conducted the study on behalf of Coinbase, surveyed over 2,000 nationals in the US.

Out of the total number, 80 percent respondents expressed disappointment and concerns on the prevailing financial inequality there. They believe that America's financial system favours the powerful members of its society rather than aiming at a collective growth.

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To put things in perspective, professionals working in the fields of medical sciences, IT, finance, and media reportedly have the highest wages in the US annually, somewhere between $123,880 (roughly Rs. 1 crore) to $265,990 (roughly Rs. 2 crore).

On the other hand, pre-school teachers and hotel desk workers come under the least paid people in the US, annually managing to earn between $25,160 (roughly Rs. 20 lakh) to $36,460 (roughly Rs. 30 lakh) — an amount that was exceeded alone by Bitcoin in 2021 when it touched its all-time high of $68,000 (roughly Rs. 56 lakh).

Hence, it does not come across as a surprise that the crypto culture is beginning to pick up pace in the US. Around 67 percent of the surveyed people have called for a ‘complete overhaul' of the US' financial system, which for now, does not recognise cryptocurrency as an integral part.

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“There is reason to be optimistic about crypto's future. Universally, Americans are frustrated by the inequality in the financial system and are hungry for change. Crypto investors and younger cohorts of Americans still believe that crypto is a worthwhile investment in the future that can lead to societal benefits,” the Morning Consult wrote in its post.

The study highlighted that despite the element of volatility linked infamously to the crypto sector, two out of ten US nationals continue to invest in crypto.

Bitcoin and Ether remain the most popular cryptocurrencies among Americans.

It is however noteworthy that the crypto community did lose trust even on BTC and ETH amid the recent slump. While the trust level on BTC fell by six points, it fell by 12 points for ETH.

“Purchasing intent has fallen by four points year over year, with 22 percent of US adults saying they are likely to purchase crypto in the next month, down from 26 percent last January. Bitcoin sales have also slipped recently: 30 percent of crypto owners say they sold bitcoin in the last month, compared with 37 percent in October 2022,” the Morning Consult added.

Despite the current slippage of trust on crypto assets, most members of the crypto community remain hopeful for better days for the sector.

Out of the total surveyed people, 76 percent believe that crypto and blockchain will make for an essential part of the global financial system.

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Further reading: Cryptocurrency, America, Financial Inequality

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More