Who Owns Bitcoin? Exploring Population Investment Percentages

Bitcoin, the world's first cryptocurrency, was launched in 2009. Since then, it has established itself as the most valuable coin in circulation, with a total market capitalization of $1.32 trillion as of March 2024. While the exact percentage of the population that is invested in Bitcoin is unclear, estimates vary from 1-3% to 22% of US adults. According to a Pew Research Center survey, 16% of Americans say they have ever invested in, traded, or used cryptocurrency, with men aged 18-29 being particularly likely to have done so. A Morning Consult survey from July 2023 reports that 26% of millennials owned Bitcoin, compared to 14% of all US adults.

26% of millennials vs 14% of all US adults owned Bitcoin in 2023

Bitcoin ownership in the US is rising, and this trend is predominantly driven by millennials. As of July 2023, 26% of millennials owned Bitcoin, compared to 14% of all US adults. This disparity is indicative of a broader generational trend in Bitcoin investment.

Millennials are more likely to view Bitcoin positively and express greater trust in it than older generations. A survey conducted in 2017 found that 20% of millennials "strongly agreed" that Bitcoin is a positive innovation in financial technology, compared to only 2% of those aged 65+. Moreover, 27% of millennials believed that Bitcoin is more trustworthy than big banks, despite their longer history. This suggests that millennials have more conviction in Bitcoin's future and are more inclined to invest in it.

Other studies support the trend of higher Bitcoin adoption among younger generations. A Charles Schwab survey in October 2022 revealed that almost 50% of Gen Z and millennials wanted crypto in their retirement funds, and 43% of Gen Z and 47% of millennials were already investing in cryptocurrencies outside their retirement accounts. Similarly, a Bitget research study conducted between July 2022 and January 2023 found that 46% of millennial respondents owned cryptocurrencies, compared to 25% of Gen X, 21% of Gen Z, and 8% of baby boomers.

While the percentage of US adults owning Bitcoin is lower than that of millennials, the overall number of Bitcoin owners in the US is significant. As of 2023, there were an estimated 67 million Americans owning at least one type of cryptocurrency, and approximately 22% of the adult population in the US owned Bitcoin.

29% of Millennial American parents own cryptocurrency

Who Owns Cryptocurrency?

Cryptocurrency ownership is dominated by younger generations, with 94% of buyers being Gen Z or Millennials (18-40 years old). Within this group, Millennial American parents stand out with a notable percentage of them owning some form of cryptocurrency.

Millennial Crypto Investors

Millennials, particularly those with children, have embraced cryptocurrency as an investment opportunity. As of August 2021, 29% of Millennial parents in the United States own some form of cryptocurrency. This is a significant proportion, especially when compared to the 13% average across all generations.

Factors Influencing Millennial Crypto Adoption

Several factors have influenced the adoption of cryptocurrency among Millennials. Firstly, they perceive it as a viable investment option. 67% of Millennials surveyed believed that Bitcoin outranked gold as a safe-haven asset. Additionally, 21% of Millennials are unconcerned about the potential for crypto values to plummet to zero. This suggests a higher risk tolerance among this demographic.

Crypto Investment Patterns

Millennial crypto investors tend to have higher levels of debt compared to the national average. They actively invest in cryptocurrency despite carrying 5.4 times more student loan debt, 2.3 times more auto loan debt, and 1.7 times more student loan debt than the national average. This indicates a willingness to take on additional financial risk in pursuit of potential gains.

Impact of Social Media and TikTok

The influence of social media platforms, particularly TikTok, has also played a role in Millennial crypto investments. Over half of young investors turn to social media for advice and insights. This has likely contributed to the spread of information and interest in cryptocurrency within this demographic.

Regulatory Considerations

While the United States considers Bitcoin a "money services business," subject to registration and record-keeping, there is a perception among crypto investors that government regulation of the industry is insufficient. This perception may influence Millennial parents' decisions to invest in cryptocurrency, as they balance the potential rewards with the risks associated with a relatively unregulated market.

43% of men would consider investing in cryptocurrency in the next year

Bitcoin, the first cryptocurrency, was launched in 2009. Since then, over 21,000 different cryptocurrencies have been created. As of March 2024, there are just over 46 million Bitcoin wallets holding at least $1 in value. This figure is based on the number of unique addresses. In total, approximately 460 million Bitcoin wallets have been created. However, around 90% of these wallets are inactive or hold minimal value.

According to a 2024 survey by The Motley Fool, 43% of men said they are likely to buy cryptocurrency in the next year. This is a record high, with 23% saying they are "very likely" to buy cryptocurrency, and 20% saying they are "somewhat likely". The majority of those likely to buy crypto have already invested. Among those who have never owned cryptocurrency, only 3% said they are very likely to buy next year and 13% said they are somewhat likely.

The survey also found that men, particularly those in Gen Z and millennials, are much more likely than women to own cryptocurrency and be interested in investing in it in the future. This trend has been repeatedly observed by Pew, JPMorgan Chase, and Morning Consult.

While the popularity of cryptocurrency has grown in recent years, it is still a very speculative investment. It is important to note that beginners should only make crypto a small part (less than 5%) of a diversified portfolio that includes stocks and other established wealth-building assets.

16% of Americans have invested in, traded or used cryptocurrency

According to a 2021 Pew Research Center survey, 16% of Americans have invested in, traded, or used cryptocurrency. This is a notable increase from 2015 when just 1% of adults said they had ever collected, traded, or used Bitcoin. The survey also revealed that men aged 18 to 29 are particularly likely to have used cryptocurrencies, with 43% saying they have done so. Overall, 86% of Americans have heard at least a little about cryptocurrencies, with 24% saying they have heard a lot.

Cryptocurrency Awareness and Usage

Cryptocurrency awareness and usage have grown significantly in recent years. In 2021, 86% of Americans reported having heard at least a little about cryptocurrencies, compared to 48% who had heard of Bitcoin in 2015. This increase in awareness has likely contributed to the rise in cryptocurrency usage, with 16% of Americans saying they have invested in or used cryptocurrency.

Demographic Differences

Demographic differences play a role in cryptocurrency usage, with men aged 18 to 29 being the most likely to have invested in or used cryptocurrency. About four-in-ten men in this age group (43%) say they have ever invested in or used cryptocurrency, compared to 19% of women in the same age range. Additionally, Asian, Black, and Hispanic adults are more likely than White adults to have invested in or used cryptocurrency.

Interest in Cryptocurrency

Despite the increasing awareness and usage of cryptocurrency, there is still skepticism and concern among some Americans. According to a Pew Research Center survey, 75% of those who have heard of crypto are not confident in its safety and reliability. Security concerns, lack of understanding, and high investment costs are some of the top reasons why people choose not to invest in cryptocurrency.

Global Cryptocurrency Adoption

While the focus here is on the US, it is worth noting that cryptocurrency adoption varies globally. India, Nigeria, and Vietnam are among the top countries for crypto adoption, according to Chainalysis' global crypto adoption index. Developing markets, such as Ukraine, Indonesia, and the Philippines, also have high adoption rates.

100 million Coinbase users worldwide

Coinbase is a leading cryptocurrency exchange platform that was launched in 2012. In the two years following its launch, the platform registered its first million users. As of 2021, Coinbase had 73 million total users, making it one of the fastest-growing companies in the cryptocurrency industry. The platform's user base has continued to grow, and as of Q1 2024, Coinbase has 8 million monthly transacting users. This represents a slight decrease from 8.4 million transacting users in Q1 2023.

Coinbase defines monthly transacting users as all users with at least one transaction on the platform during a 28-day period. The platform's monthly active users have grown every year since its founding. Notably, Coinbase experienced a significant increase in users in 2021, with the number of monthly active users tripling from 2.8 million in 2020 to 8.8 million. This growth can be attributed to several factors, including the increasing public focus on cryptocurrency, the public trading of company shares, and effective marketing and outreach campaigns.

Coinbase has a global presence, spanning six continents, including Oceania, Africa, North America, South America, Asia, and Europe. The platform's services are available in more than 100 countries, catering to a diverse range of users interested in cryptocurrency investments and transactions.

Coinbase's user base consists of individuals from various demographics, with a significant proportion of young male investors. According to surveys, cryptocurrency investment and interest are highest among young men, while skepticism is more prevalent in older age groups and females. Despite this demographic divide, Coinbase's wide reach and popularity have contributed to its position as one of the leading platforms in the cryptocurrency space.

While the exact percentage of the population invested in Bitcoin is challenging to determine, surveys and statistics provide insights into Bitcoin ownership and cryptocurrency adoption worldwide. According to a July 2023 Morning Consult survey, 26% of millennials owned Bitcoin, compared to 14% of all US adults. Additionally, research from March 2024 suggests that there are just over 46 million Bitcoin wallets holding at least $1 in value, indicating a significant number of individuals engaging in Bitcoin transactions.

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