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Battle of figures between Fed and Coinbase
4.30pm ▪ 4 minute read ▪ by Mikaia A.
The Fed claims Americans are shunning cryptocurrencies, casting doubt on Coinbase’s figures. In January, the cryptocurrency exchange said 52 million Americans owned cryptocurrencies. Who to believe, the Fed’s reserves or Coinbase’s unbridled enthusiasm?
Cryptocurrencies: A Fleeting Bargain for Americans?
Cryptomania is losing momentum across the Atlantic fearing a repeat of the FTX scenario? At least that’s what latest Fed survey on the economy and family decision-making processes suggests, published May 21. Harsh probing reveals just this 7% of American adults use cryptocurrencies in the 12 months preceding October last year. A figure down compared to 12% in 2021 and 10% in 2022.
In this evolving landscape, cryptocurrency adventurers are rare: just 1% of adults still dare to use cryptocurrencies for payments or money transfers. A percentage halved compared to the previous year. Among these bold individuals, almost 30% do it because the other party prefers this methodWhile lack of trust in banks it is the least cited reason.
The rich, however, seem to appreciate this digital currency: those earn more than $100,000 per year they are the most likely to invest in Bitcoin (BTC) and similar. THE millennials (30-44 years old) lead the pack, followed closely by Generation Z (18-29 years old). In particular, men are three times more likely to dive into the world of cryptocurrencies compared to women.
Ethnic disparities are also marked: Black and Hispanic adults they prefer financial transactions in cryptocurrencies, while Asians prefer cryptocurrencies as investments. White adults, on the other hand, seem the least interested in this new digital economy.
This survey, conducted in October 2023 between 11,488 adultsand weighted to represent America’s 258 million adults, paints a nuanced picture of the enthusiasm for cryptocurrencies.
Fed and Coinbase data: a crypto gap
The Fed data is far from resembling Coinbase data its 2023 cryptocurrency study. In fact, Coinbase painted a much rosier picture: nearly one in five Americans own cryptocurrenciesthat is 52 million people.
Coinbase, in its exuberant enthusiasm, affirms this 87% of Americans want financial system reform, finding it unfair and partial in favor of the powerful. As a result, 63% of cryptocurrency holders believe this Blockchain technology can democratize the economy.
But the Fed, for its part, points out that only 1% use cryptocurrencies for transactions, mainly because their recipients prefer them.
According to Coinbase, younger generations are the most fervent cryptocurrency enthusiasts: 72% of young people aged between 18 and 34 believe that digital assets represent the future of finance.
Coinbase supports clear legislation to govern cryptocurrenciesunderlining it 87% of Fortune 500 leaders believe clear rules are essential to maintaining American leadership. On the contrary, the Fed remains discreet on the topic, limiting itself to noting a decline in the use of cryptocurrencies.
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Therefore, the two studies offer contrasting views of the crypto universe: optimistic and reformist at Coinbase, cautious and realistic at the Fed.
It remains to be seen which of the two will be able to convince the legislators, currently very focused on the FET21 law, and the citizens.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.