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Battle of numbers between the Fed and Coinbase
4:30 p.m. ▪ 4 min reading ▪ by Mikaia A.
Fed says Americans are shunning crypto, calling Coinbase figures into question. In January, the crypto exchange claimed that 52 million Americans owned crypto assets. Who to believe, the Fed’s reserve or the unbridled enthusiasm of Coinbase?
Cryptocurrencies: a passing affair for Americans?
Crypto-mania is running out of steam across the Atlantic fearing a repeat of the FTX scenario? At least that’s what latest Fed survey on the economy and household decision-making suggests, published on May 21. A scathing investigation reveals that only 7% of American adults have used cryptocurrencies in the 12 months to October last year. A figure in free fall compared to 12% in 2021 and 10% in 2022.
In this changing landscape, crypto adventurers are rare: only 1% of adults still dare to use cryptos for payments or money transfers. A percentage reduced by half compared to the previous year. Among these daring people, almost 30% do it because their counterpart prefers this methodwhile lack of confidence in banks is the least cited reason.
The rich, however, seem to appreciate this digital currency: those earn over $100,000 per year are most likely to invest in Bitcoin (BTC) and others. THE millennials (30-44 years old) are leading the pack, followed closely by Generation Z (18-29 years old). Notably, men are three times more likely to enter the world of crypto than women.
Ethnic disparities are also marked: Black and Hispanic adults favor financial transactions in crypto, while Asians prefer cryptocurrencies as investments. White adults, on the other hand, seem the least interested in this new digital economy.
This survey, carried out in October 2023 among 11,488 adultsand weighted to represent America’s 258 million adults, paints a nuanced picture of enthusiasm for cryptocurrencies.
The Fed and Coinbase Numbers: A Crypto Gap
The Fed’s numbers are far from resembling those of Coinbase in its 2023 study on cryptocurrencies. Indeed, Coinbase painted a much rosier picture: nearly one in five Americans own cryptoor 52 million people.
Coinbase, in its exuberant enthusiasm, claims that 87% of Americans want reform of the financial system, finding it unfair and biased in favor of the powerful. Echoing this, 63% of cryptocurrency owners believe that blockchain technology can democratize the economy.
But the Fed, for its part, emphasizes that only 1% use cryptocurrencies for their transactions, mainly because their recipients prefer them.
According to Coinbase, younger generations are the most ardent crypto enthusiasts: 72% of 18-34 year olds believe that digital assets represent the future of finance.
Coinbase advocates clear legislation to govern cryptographyemphasizing that 87% of Fortune 500 executives say clear rules are essential to maintaining American leadership. Conversely, the Fed remains discreet on the subject, content to note a decrease in the use of cryptos.
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Thus, the two studies offer contrasting visions of the crypto universe: optimistic and reformer at Coinbase, cautious and realistic at the Fed.
It remains to be seen which of the two will ultimately convince legislators, currently very focused on the FET21 law, and citizens.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.