As the cryptocurrency landscape continues to evolve, public sentiment surrounding its safety and reliability remains largely negative. A recent survey conducted by the Pew Research Center reveals that a significant majority of Americans—approximately 63%—express little to no confidence in the current methods of investing, trading, or using cryptocurrencies. This skepticism is underscored by a notable decline in cryptocurrency values, a surge in lawsuits against exchanges, and ongoing discussions in Congress regarding potential regulations.
Survey Insights
The Pew Research Center’s analysis, based on a survey of over 10,000 adults conducted from February 7 to 11, 2024, highlights the persistent doubts among Americans regarding cryptocurrency. Only 5% of respondents indicated that they are extremely or very confident in the reliability and safety of cryptocurrencies, while 18% reported being somewhat confident. These findings echo sentiments from earlier research conducted in March 2023, signaling a consistent trend in public opinion.
Demographic Variations
Confidence levels in cryptocurrency vary significantly across different demographic groups. Older adults, particularly those aged 50 and above, exhibit greater skepticism, with 71% expressing doubts about the safety and reliability of cryptocurrencies, compared to 55% of younger adults. Additionally, among those who are familiar with cryptocurrencies but have not invested, a staggering 82% reported low confidence, while only 39% of current investors share that sentiment.
Who Is Using Cryptocurrency?
Despite the prevailing skepticism, about 17% of U.S. adults report having engaged with cryptocurrencies at some point. This figure has remained stable since 2021. A closer look at the data reveals that younger men are more likely to have used cryptocurrency, with 42% of men aged 18 to 29 indicating they have invested, traded, or utilized cryptocurrencies, compared to just 17% of women in the same age group.
Differences by Race and Income
- Among Asian adults, 28% report having used cryptocurrency, while about 20% of Black and Hispanic adults claim the same. In contrast, only 14% of White adults say they have engaged with crypto.
- Income also plays a role in cryptocurrency usage, with 23% of individuals from upper-income households stating they have used it, compared to 18% of middle-income and 14% of lower-income households.
The Changing Landscape of Cryptocurrency Ownership
While a minority of Americans have ever ventured into cryptocurrency, most of those who have remain invested. Currently, 61% of individuals who have used cryptocurrency still hold it, although this is a decrease from 69% in 2023. Notably, 39% of past users report they no longer possess any cryptocurrency, reflecting a shift that has been observed since last year.
Financial Implications
The financial impact of cryptocurrency investments continues to be a concern for many users. A survey conducted in 2023 found that 38% of respondents believed their investments performed worse than expected, while 37% felt their investments met expectations. Only 20% reported that their investments exceeded expectations.
Initial Engagement with Cryptocurrency
The survey also explored when Americans first engaged with cryptocurrency. Approximately 74% of respondents indicated they began using it one to five years ago, while 16% started within the past year. Notably, Black users were more likely than White users to have begun their cryptocurrency journey in the last year, with 27% of Black users reporting this compared to just 12% of White users.
In summary, as the cryptocurrency market grapples with various challenges, public confidence remains low, reflecting a broader skepticism about its future viability. The trends observed in usage demographics and financial outcomes paint a complex picture of a market still in its formative stages.
