Introduction

A recent survey by the FDIC sheds light on the demographics of Bitcoin and cryptocurrency users across the United States, revealing some surprising insights. Conducted among 30,000 households, the FDIC National Survey of Unbanked and Underbanked Households highlights that the majority of crypto users are affluent, predominantly white, and have access to traditional banking services.

Demographics of Crypto Users

According to the poll, only 4.2% of households reported using cryptocurrency. The data shows a stark contrast in usage based on socioeconomic status and race: 7.5% of Asian households and 5.2% of White households engage in crypto utilization, while only 3.2% of Black households and 3.5% of Hispanic households participate in the same way.

In terms of overall crypto usage, the survey revealed that unbanked households, which do not have banking or credit accounts, utilize cryptocurrency the least (1.2%) compared to 6.2% among underbanked households (those who may have bank accounts but still resort to alternative financial services) and 4.8% from fully-banked households. This data suggests that cryptocurrency is predominantly embraced by people already integrated into the financial system, rather than those on the fringes.

Investment vs. Utility

Interestingly, a whopping 92% of those who hold cryptocurrency consider it primarily as an investment, with only a small fraction (3.3%) acknowledging its use for personal transactions like sending and receiving money. This indicates a prevailing belief that cryptocurrencies are more of a speculative asset than a viable currency for daily transactions.

Income and education also play significant roles in determining cryptocurrency usage. Among households earning $75,000 or more, 7% reported using crypto, while a negligible 1.1% of those making less than $15,000 engaged in the same. Age demographics show that younger users, particularly those aged 25 to 34, are far more likely to use cryptocurrency (9.8%) compared to only 1.2% among seniors aged 65 and older.

A Broader Financial Picture

The FDIC’s biennial report, which was reviewed during an advisory committee meeting this November, aimed to expand financial inclusion. This year marked the first time these agencies directly assessed Americans' participation in cryptocurrency as part of their inquiry into financial habits. The report also ventured into new territory by asking about "Buy Now, Pay Later" services, where only 3.9% of respondents claimed to utilize these options.

Despite the seemingly modest figures, the landscape of cryptocurrencies is changing rapidly. With Bitcoin's value soaring to $93,150—reflecting a staggering 110% increase this year and a notable 48% rise in just a month—this triggers renewed discussions about the implications of cryptocurrencies on the wider economy and traditional banking as well.

Should We Be Concerned?

Given this data, one must ponder: Are cryptocurrencies truly a tool for financial inclusion, or are they reinforcing existing inequalities? Ernst from the advisory committee remarked thoughtfully, “Is this a device that is potentially replacing people’s banking habits? That’s just not what people are using it for.” The critical question remains whether future advancements in crypto technology will lead to more equitable access for all financial classes. As the market evolves, opportunities for growth and inclusion exist, yet the current landscape suggests a skewed access that mirrors the disparities pervasive in conventional financial systems.