Recent findings from the Federal Reserve’s annual Survey of Household Economics and Decisionmaking (SHED) reveal that just 7% of American adults currently own or use cryptocurrency. This represents a notable decline from previous years—down 3 percentage points since 2022 and 5 points from 2021—suggesting a cooling in public enthusiasm for digital assets despite ongoing innovation in the space.
The data, gathered in October 2023 from a nationally representative sample of 11,488 U.S. adults, paints a conservative picture of crypto adoption. Based on the U.S. Census Bureau’s estimate of 258 million adults in the country as of March 2023, the 7% ownership rate translates to approximately 18 million crypto holders nationwide.
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Contradictory Data: Industry Estimates Tell a Different Story
While the Federal Reserve’s figures suggest limited mainstream traction, other sources offer a far more optimistic outlook. Statista, a leading data intelligence platform, estimates that the number of cryptocurrency users in the U.S. could be as high as 74.37 million—more than four times the Fed’s calculation.
This discrepancy highlights a critical challenge in measuring crypto adoption: differing definitions of what it means to "own" or "use" digital assets. The Federal Reserve’s survey may capture only those who actively hold or transact with crypto, while industry metrics might include anyone who has ever created a wallet, used an exchange, or engaged with a Web3 application—even once.
High-profile figures in the crypto space have echoed these higher estimates. Michael Novogratz and Anthony Scaramucci, both influential voices in digital asset investing, have publicly challenged the Fed’s numbers. Scaramucci notably compared crypto ownership to dog ownership in a 2023 interview:
“There are 85 million people in this country that own crypto in one form or another. There are 65 million dog owners, so you have more crypto owners than you have dog owners.”
While such claims lack verifiable sourcing, they reflect a broader narrative within the industry: that crypto adoption is more widespread than official surveys suggest.
How Americans Use Cryptocurrency
Despite low overall ownership, the Fed’s report provides valuable insights into how those who do use crypto are engaging with it. Only 2% of adults reported using cryptocurrency to make a financial transaction in the past year. Among this group, one in four said they used it for international transfers—highlighting one of crypto’s most practical applications: fast, low-cost cross-border payments.
The motivations behind using crypto for transactions vary:
- Around 30% cited the recipient’s preference for receiving digital assets.
- Others valued the speed and privacy of blockchain transactions.
- A smaller portion mentioned concerns about traditional banking systems, though distrust in banks was not a dominant driver.
These findings suggest that while crypto is not yet a mainstream payment method, it serves niche but meaningful use cases—particularly where legacy financial infrastructure falls short.
Demographics of Crypto Users
The survey also reveals clear demographic patterns among crypto adopters:
- Age: Younger to middle-aged adults (ages 18–44) are significantly more likely to own or use cryptocurrency.
- Gender: Men are overrepresented among users, both for investment and transactional purposes.
- Financial status: Interestingly, crypto usage for payments is higher among the unbanked and underbanked populations—those with limited access to traditional financial services.
This last point underscores a potentially transformative role for digital assets: expanding financial inclusion. In theory, anyone with internet access can participate in the crypto economy, bypassing traditional gatekeepers like banks or credit institutions.
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Why the Gap in Crypto Ownership Data?
Several factors may explain the divergence between Federal Reserve data and industry estimates:
- Survey Methodology: The Fed’s SHED survey relies on self-reported behavior and may not capture passive holders (e.g., those with crypto in retirement accounts or via apps like Cash App).
- Definition of “Ownership”: Industry reports may count anyone who has interacted with a crypto platform, even casually.
- Timing and Market Cycles: The survey was conducted during a relatively quiet period in the crypto market (late 2023), following the 2022 downturn. Adoption may fluctuate with market sentiment.
- Institutional vs. Retail Use: The Fed focuses on individual behavior, while broader adoption includes institutional investments and indirect exposure through ETFs or fintech products.
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Frequently Asked Questions (FAQ)
Q: Why does the Federal Reserve report lower crypto ownership than other sources?
A: Differences stem from methodology and definitions. The Fed measures active ownership and use through direct survey responses, while companies like Statista may include anyone who has ever used a crypto service.
Q: Is cryptocurrency use growing or declining in the U.S.?
A: While the Fed reports a decline from peak adoption years (2021–2022), long-term trends suggest sustained interest, especially with new developments like spot Bitcoin ETFs and increasing institutional involvement.
Q: Who is most likely to use cryptocurrency in the U.S.?
A: Younger adults (18–44), men, and individuals with higher income or tech exposure are more likely to adopt crypto. It’s also used more frequently by unbanked populations for cross-border remittances.
Q: Can cryptocurrency improve financial inclusion?
A: Yes. Crypto offers an alternative financial system for those excluded from traditional banking, enabling access to savings, payments, and credit through decentralized platforms.
Q: How accurate is the Federal Reserve’s data on crypto?
A: The SHED survey is highly credible due to its rigorous design and large sample size. However, it may undercount passive or indirect crypto exposure.
Q: Are more Americans using crypto for everyday payments?
A: Not significantly. Only 2% used crypto for transactions in the past year, indicating it remains primarily an investment vehicle rather than a payment method.
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Final Thoughts
The Federal Reserve’s latest data suggests that while cryptocurrency has not yet achieved mass adoption in the United States, it continues to serve specific financial needs—particularly in cross-border transactions and among underserved communities. The gap between official statistics and industry claims reflects deeper questions about how we measure technological adoption in an evolving digital economy.
As regulatory clarity improves and infrastructure matures, crypto could see renewed growth—not necessarily through speculative trading, but through practical utility that aligns with real user needs. For now, the 7% figure serves as a benchmark: modest, but meaningful in shaping policy, product development, and public understanding.
The future of digital currency may not depend on how many people own Bitcoin—but on how many find it useful.