Coinbase, a leading cryptocurrency exchange, released a new national survey of 2,000 American adults on Tuesday, revealing that nearly 20% of Americans own cryptocurrencies. This marks a significant increase in the number of people investing in digital assets, compared to 2019, when just 5% of Americans reported owning cryptocurrencies. Coinbase’s survey results provide interesting insights into cryptocurrency ownership in the US and how it has grown over time.
The survey, conducted by research firm YouGov on behalf of Coinbase, found that younger Americans are leading the charge in cryptocurrency adoption. Specifically, nearly one in three people aged 18 to 34 reported owning cryptocurrencies, while only 13% of respondents over 55 said the same. The survey also showed that men were more likely than women to invest in cryptocurrencies, with 23% of men saying they own digital assets compared to 14% of women.
Reasons for Investing in Cryptocurrencies
According to the survey, the most common reason people invest in cryptocurrencies is as a long-term investment, with 60% of respondents citing this as their motivation. The survey also found that 39% of respondents said they view cryptocurrencies as a hedge against inflation and 31% see them as an alternative to traditional investments like stocks and bonds.
Furthermore, the survey found that people are investing in cryptocurrencies for different reasons than they did in the past. In 2019, the top reason people invested in cryptocurrencies was for fun, with 42% of respondents saying they did so for entertainment. However, in 2021, only 15% of respondents cited this reason for investing in cryptocurrencies.
Challenges to Cryptocurrency Adoption
While the survey suggests that cryptocurrencies are becoming more popular among Americans, it also highlights some of the challenges to widespread adoption. One of the biggest concerns for respondents was the lack of understanding about cryptocurrencies, with 44% of respondents saying that they didn’t know enough about digital assets to invest in them. Additionally, 35% of respondents said that they were worried about the potential risks of investing in cryptocurrencies.
Another challenge to adoption is the difficulty of using cryptocurrencies for everyday purchases. While many businesses have started accepting digital assets, it is still not a widely accepted form of payment. The survey found that 24% of respondents said that the lack of merchants accepting cryptocurrencies was a barrier to investing.
Coinbase’s Take on the Survey Results
In a blog post accompanying the survey results, Coinbase emphasized that the survey shows the growing interest in cryptocurrencies among Americans, but also acknowledged the challenges to adoption. The company highlighted its commitment to educating people about cryptocurrencies and making it easier to invest in digital assets.
“Although we’re encouraged by the growth of the crypto economy, we recognize that adoption is still in its early stages,” Coinbase wrote. “We will continue to invest in education and user experience while working to create an open financial system for the world.”
The results of the survey suggest that cryptocurrencies are becoming more mainstream in America, with a growing number of people investing in digital assets for the long term. However, the survey also highlights the challenges to widespread adoption, such as the lack of understanding and difficulty in using cryptocurrencies for everyday purchases.
As more businesses start accepting digital assets and more education about cryptocurrencies becomes available, it’s possible that more Americans will start investing in digital assets. However, it remains to be seen how much of a role cryptocurrencies will play in the future of finance and investment in America. Moreover, Coinbase is committed to helping drive the global adoption of digital assets and believes its survey results will help inform its efforts as they move forward.