It’d be reasonable to assume that given the sheer amount of mainstream attention bitcoin commands that ownership levels of that digital currency and perhaps a few of the other larger ones would be elevated among ordinary investors.
In reality, the scenario is different – an arguably surprising notion when considering crypto adoption is accelerating in other realms, including among corporations and some global governments. Count advisors and institutional investors among the market participants that are increasingly integrating bitcoin into modern portfolios.
Put it all together and it should be the perfect storm of high levels of cryptocurrency indulgence by everyday investors, but that’s not the case. Sure, there’s no denying bitcoin and ethereum ETFs are broadening access for market participants, bringing large amounts of new investors into the crypto fold, but believe it or not, not even two in 10 American’s own crypto.
“Roughly one in seven U.S. adults, 14%, report owning cryptocurrency today, with few others intending to buy it soon,” according to Gallup data.
Positive, Negative Trends in Crypto Adoption
Despite scores of articles highlighting big-time gains throughout the cryptocurrency space, the majority of those polled by Gallup said they’ll never digital currency because they view it as too volatile. On the other hand, the 14% of everyday investors that currently own crypto represents a massive jump from the single-digit percentage seen just four years ago.
An interesting point regarding crypto ownership and one advisors should acknowledge is that once an investor gets involved, not all become devotees, which is also surprising. It’s even more stunning when considering many crypto owners are young investors with flairs for risk.
“In addition to those who currently own cryptocurrency, just 4% of Americans say they will probably buy it in the near future,” adds Gallup. “Seventeen percent admit they are intrigued by the investment but are not planning to buy it anytime soon, while 60% say they have no interest in buying cryptocurrency. Another 6% are either not familiar with cryptocurrency or are unsure about buying it.”
Those are arguably stunning statistics when accounting for fear of missing out (FOMO). FOMO is a difficult emotion to overcome and if bitcoin (and other) prices continue trending higher, it wouldn’t be a stretch the percentages of crypto ownership increase. That’s how FOMO works and with or without FOMO, crypto ownership is bound to increase. Some key demographic data confirm why.
With Crypto, Demographics Matter
Speculating that cryptocurrency ownership is going to increase over the long-term isn’t really speculation at all when factoring some important demographic trends, including the propensity for crypto investors to be younger and somewhat educated.
“Although 14% of U.S. adults overall report owning bitcoin or another cryptocurrency, the rate varies significantly by gender and age,” adds Gallup. “Ownership is much higher, at 25%, among men aged 18 to 49 than among men aged 50 and older (12%), women aged 50 and older (9%) and women aged 18 to 49 (8%).”
The polling firm also points out that college graduates and upper-income Americans both have above-average levels of digital currency ownership, implying that as education and income levels rise, so will crypto ownership.
