A report by the United States Federal Reserve Board has revealed that most US crypto investors hold it for investment purposes and those who earn a high income.
The United States Federal Reserve Board published the Economic Wellbeing of US Households report in 2021, and has a lot to say about crypto use in the country. The Federal Reserve Board wanted to better understand how emerging products were affecting consumers, which is why crypto was first included in the survey.
The report states that crypto was primarily used for investments and not for transactions or purchases. Only 3% of adults used it for shopping and money transfers.
But perhaps the most interesting insight from the report is the fact that the majority of people who owned crypto for investment purposes were high-income owners. Of those holding crypto as an investment, 46% made more than $100,000, while 29% made less than $50,000.
Statistics show that there is a lot of room for adoption. Only 12% of adults have used or used crypto in the past year. If crypto gets more footing, it could lead to a lot of adoption, which is currently low in numbers.
For more general statements about how consumers are doing, overall financial well-being ranks highest since this survey was first conducted in 2013. Despite inflationary headlines and a potential recession on the horizon, 48% of adults They rated their local economy as good or excellent.
Cryptocurrencies rising in stature amid market turmoil
The Federal Reserve, along with other US agencies, is paying more attention to the digital asset market. The growing popularity has forced agencies to contend with these new technologies and their impact on wider markets. On its part, the Fed is considering a central bank digital currency.
Some economists believe that the action of the Federal Reserve will lead to a rise in the prices of crypto and gold. It recently raised interest rates by 0.5%, the biggest increase since 2000.
The crypto market is in tank with other markets, and is still subject to the same factors that affect traditional finance. But lawmakers are concerned about investor protection and a spillover, so regulatory interest has increased. With more adoption and more market swings, that interest should turn into law soon.
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