The greatest percentage of crypto users are young people with higher incomes, men, and Asians.
According to figures from the middle of 2022, a recently published analysis by JP Morgan found that approximately 15% of persons living in the United States have made transactions into cryptocurrency accounts. The specific demographic data also suggests that men, people of Asian descent, and younger people with better incomes had the highest adoption rates of cryptocurrency in the country.
J.P. Morgan analysed the data from its 5 million checking account holders who are currently active and approximated the results accordingly. The following is a commentary on the primary finding from the report:
Given the volatility of the market and the lack of clarity over how the use of crypto-assets may develop in the future, “the trend has the potential to have implications for the health of family balance sheets.”
According to the statistics, Millennials have the highest adoption rate of cryptocurrency, with 20% of the total. The Baby Boomer generation and Generation X come in second and third place, with 11% and 4% of the population, respectively, behind the Millennial generation.
Adoption of cryptocurrencies across the generations and by gender
The blue blocks are used to depict men, and the yellow blocks are used to depict women. According to the available data, men have roughly twice as many children adopted into their families as women do across all generations. In addition, the median total gross transfers for men is approximately $1,000, whereas the median total gross transfers for women is only $400.
Only millennials are taken into consideration while compiling the racial statistics because this age group makes up the vast majority of cryptocurrency users in the sample. The statistics, on the other hand, reveals that users who are of Asian descent have the greatest participation rate, coming in at 27%.
Adoption of cryptocurrencies according to race and income
Users who identified themselves as Hispanic and Black tied for second place with an adoption rate of 21%, while users who defined themselves as White looked to have the lowest adoption rate with approximately 10%.
Income Regardless of a user’s racial background, racial statistics have shown that the quantity of money deposited into a cryptocurrency-related account grows proportionally with the user’s income.
Every single person in the sample conforms to the hypothesis that there is a correlation between one’s salary and the quantity of money moved into a cryptocurrency account. The report said that the median gross amount transferred to cryptocurrency across the sample was approximately $620. This was mentioned despite the fact that it was acknowledged that the level of crypto participation is higher for persons with higher incomes.
A peak market sees an increase in the number of cryptocurrency consumers.
The number of users who moved funds into a cryptocurrency account during the COVID-19 issue reportedly increased by a factor of three, as stated in the study.
2017-2022: Year of First Use for Crypto Users
The majority of users carried out their initial transactions within the same five months, which coincided with the highest price of bitcoin.
The statistics also showed that people in the highest income bracket were the ones that bought cryptocurrency when the prices were still relatively low. On the other hand, customers that fall into the lowest income bracket tended to make purchases at the higher price levels, which is indicative of lesser investment returns.
Prices of bitcoin and cryptocurrencies purchased for the first time by millennials according to their income quartiles
Only millennials are taken into account in the chart that is displayed above, and they are categorised according to their levels of gross income. The income quartile with the least amount of money looks to have made their first cryptocurrency purchases while the price of Bitcoin was hovering around $45,500.
On the other side, people whose incomes were in the highest quartile had bought cryptocurrency when the price of BTC was as low as $42,400.
