Fed report finds most Americans who own cryptocurrencies are high-income holders

The U.S. Federal Reserve included data on cryptocurrencies in its new 2021 report on the economic well-being of U.S. households. The Fed's ninth annual report examines survey results of 11,000 people for October and November 2021.

The report shows that the financial status of American adults is at its highest level since the report began, with 78% of American adults being "financially strong or living comfortably." This is a 3% increase over the past three years. As a diagnosis of financial well-being, the report cites 68 percent of Americans saying they could pay $400 in emergency expenses with just cash or its equivalent.

The report is the first to examine the use of cryptocurrencies. The report found that in 2020, 12 percent of U.S. adults held or used cryptocurrency, 11 percent held it as an investment, 2 percent used it for purchases or payments, and 1 percent sent it to friends or family. Investors who hold cryptocurrencies “have disproportionately high incomes, nearly all have traditional banking relationships, and often have other retirement savings.” 46% make $100,000 or more a year, and 89% are unretired Have retirement savings. 29% make less than $50,000 a year.

The situation of a typical user trading in cryptocurrencies is very different from that of an investor. Nearly 60 percent of these users make less than $50,000 a year, and 20 percent make less than $25,000, the report said. Only 24 percent earn more than $100,000. 13% do not have a bank account. In contrast, 6% of U.S. adults do not have a bank account. 27% of people who transact with cryptocurrencies do not have a credit card, compared to 17% of the general population.

Those who transact in cryptocurrencies face other disadvantages. Nearly a quarter of them do not have a high school diploma, the report found.

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