A recent study by the Pew Research Center on crypto adoption revealed that a majority of US residents (88%) possess at least basic knowledge about cryptocurrencies. However, only 24% believe investing, trading, or using digital assets is safe and reliable. The degree of skepticism varies across demographic groups, with 85% of adults aged 50 and above expressing doubts compared to 66% of younger individuals.
Demographic disparities in crypto adoption
The research found that 17% of participants had engaged in cryptocurrency transactions at some point in their lives. Attitudes toward digital assets vary based on factors such as gender, age, race, ethnicity, and income level. For instance, 41% of men aged 18-29 reported having invested or used cryptocurrencies, compared to only 16% of women in the same age bracket.
Cryptocurrencies appear to be more popular among minority groups, with 24% of Asian respondents and 21% of Black and Hispanic participants reporting involvement in the ecosystem. In contrast, only 14% of White adults claimed to have done so.
Despite high levels of awareness, 75% of respondents remain unconvinced about the safety and reliability of cryptocurrencies. A mere 2% expressed “extreme confidence,” while 4% considered themselves “very confident.” Women tended to be more skeptical than men, with 80% falling into the “non-confident” category compared to 71% of male respondents.
Notably, cryptocurrency investors generally expressed higher levels of trust in digital assets. One in five investors felt “extremely” or “very confident,” while only 2% of non-investors shared the same sentiment.
Cryptocurrency investment outcomes
The Pew Research Center study also found that most investors (74%) entered the cryptocurrency market between one to five years ago, with only 10% participating before 2018. Unfortunately, 45% of American investors reported that their cryptocurrency investments had not been as profitable as expected, while just 15% experienced better returns than anticipated.
A small percentage (3%) of investors suffered significant financial damage, while 16% claimed to have been hurt “a little.” Those who faced substantial losses were primarily college graduates (25%) and individuals with some college experience (20%).
Cryptocurrency experts have repeatedly emphasized the importance of understanding the market before investing and only committing funds that one can afford to lose. In 2021, Bitcoin proponent Anthony Scaramucci recommended allocating no more than 5% of total savings to cryptocurrencies to balance potential gains with manageable losses.
