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The US Federal Reserve (Fed) has issued report annually reflects the financial life of the United States and indicates that people are using cryptocurrencies as an investment tool rather than a payment mechanism. Up to 12% of American adults will use crypto in 2021, and most are high-income earners.
The U.S. Household Economy Report 2021 is based on the Fed Board’s 9th Annual Survey of Household Economics and Decision Making. The Fed looked at survey results from 11,000 respondents in October and November 2021. This is the first time this report contains data on cryptocurrency usage.
According to data, 12% of Americans traded crypto in 2021, but who invests in what and for what? https://t.co/9QSeWeE3XJ
— Cointelegraph (@Cointelegraph) May 24, 2022
Report announced many positive results, with 78% of adults in the US “sufficiently living or financially well off”, a figure that has increased by 3% in the past 3 years. As a diagnostic of financial fitness, the report cites 68% of Americans as being able to cover emergency expenses of about $400 with cash alone or equivalent.
According to the report, 12% of Americans surveyed bought, held or used cryptocurrency in 2021. The data proves that cryptocurrencies are preferred as an investment tool rather than a “eaten” transaction. no matter what,” with only 2% of people using crypto to make purchases and 1% to send money to friends or family.
The above numbers conclude that lower-income adults are more likely to use cryptocurrencies for transactional purposes rather than lucrative investments. 13% of people use crypto for payments perhaps because they don’t have a traditional bank account and 27% don’t have a credit card. Nearly 6 out of 10 people who trade crypto have an income of less than $50,000 and only 24% have an income of more than $100,000.
In contrast, those who hold crypto for investment purposes often have “disproportionately high income and almost always have a relationship with a traditional bank and have other retirement savings.” Indeed, 46% had income of $100,000 or more and 29% had income of less than $50,000. Nearly all, 99% already have a bank account.
The study was conducted before the Omicron variant took hold in 2021. The Fed recognized that this and other changes to the economic landscape could affect the results of the study if it conducted the survey. close afterwards.
This is the first time the US regulator has asked a question about cryptocurrencies to the 11,000-person survey panel, and it is also the year that reflects the highest self-reported financial well-being ever. Every year the Fed has conducted a survey to assess the financial state of Americans, since 2013.
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