Exploring Crypto Investors: Population Percentage And Trends

Cryptocurrency ownership has been on a steady rise, with the global user base reaching 562 million people in 2024, up from 420 million in 2023. This equates to 6.8% of the global population owning cryptocurrencies, a 34% increase from the previous year. Cryptocurrencies are particularly popular in developing economies, where conventional currencies are prone to fluctuations in exchange rates. The United Arab Emirates (UAE) has the highest rate of crypto ownership globally, with 25.3% of its population owning cryptocurrencies. Asia is the continent with the highest number of crypto owners, with 326.8 million people owning cryptocurrencies.

17% of US adults have invested in crypto as of 2023

As of 2023, 17% of US adults have invested in cryptocurrency. This percentage has remained mostly unchanged since 2021. While cryptocurrency is gaining popularity, it is clear that it is still a risky and speculative investment.

Cryptocurrency is a digital currency that is secured through cryptography and computer networks. It is not overseen by traditional central institutions like governments or banks, and transactions can be performed semi-anonymously. The first cryptocurrency, Bitcoin, was launched in 2009. Since then, more than 21,000 different cryptocurrencies have been created.

Despite its growing recognition, cryptocurrency is not widely understood. According to a 2021 survey, 69% of Americans claim to not understand how it works. This lack of understanding, along with concerns about security and reliability, may contribute to the relatively low percentage of US adults investing in cryptocurrency.

It is worth noting that cryptocurrency ownership varies across different demographic groups. For example, younger men are more likely to invest in cryptocurrency compared to older men and women of any age. Additionally, higher-income earners are disproportionately represented among crypto investors.

While the percentage of US adults investing in cryptocurrency has remained relatively stable, the value of cryptocurrencies has been highly volatile. The crypto market has experienced significant growth and crashes over the years, and it remains to be seen whether cryptocurrency will become a widely accepted form of currency or investment.

26% of US millennials owned Bitcoin in 2023

As of July 2023, 26% of US millennials owned Bitcoin, compared to 14% of all US adults. This percentage has increased over the years, with only 4% of millennials reporting ownership in a 2017 survey. The preference for Bitcoin is especially true for millennial men, with nearly one-third of them saying they would choose $1000 in Bitcoin over stocks, government bonds, real estate, or gold.

The proclivity of millennials for Bitcoin is indicative of a bright future for the digital asset. Millennials are more knowledgeable about Bitcoin than older generations, with 42% claiming familiarity compared to 15% of those aged 65 and above. This greater awareness may contribute to their positive view of Bitcoin, with half of millennials agreeing that it is a positive innovation in financial technology.

The trend of cryptocurrency ownership is not limited to the US. A global survey of 255,000 respondents across 26 countries found that 46% of millennials owned cryptocurrencies. This percentage is even higher than that of Gen Z respondents (36%), who are the second-highest adopters of crypto.

The increasing adoption of cryptocurrencies, particularly among millennials, has important implications for the future of finance and investment.

43% of people are likely to invest in crypto in the next year

According to The Motley Fool Ascent's Cryptocurrency Investor Trends Survey, 43% of respondents said they are likely to invest in cryptocurrency within the next year. This is a record high, with 23% stating they are "very likely" to buy crypto, and 20% saying they are "somewhat likely".

The majority of those likely to buy crypto already have investments in this area, with 62% of current crypto owners and 48% of those with exposure to Bitcoin through an ETF stating they are very likely to buy more in the coming year. However, among those who have never owned cryptocurrency, only 3% said they are very likely to buy in the next year, and 13% said they are somewhat likely.

Men and younger respondents, particularly Gen Z and millennials, are much more likely than women and older respondents to own cryptocurrency and express interest in investing in the future. This demographic divide has been repeatedly observed by organizations such as Pew, JPMorgan Chase, and Morning Consult.

The top reasons for crypto skepticism include the belief that it is a bad investment, that it is too late or too expensive to invest, and concerns about security.

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75% of crypto owners view it as an investment

According to a survey by The Motley Fool Ascent, 75% of crypto owners view it as an investment. This is a record high, with most respondents not owning crypto to make secure payments, to buy NFTs, or because they think it will replace currencies.

The survey also revealed that interest in cryptocurrency is at an all-time high, with 43% of respondents saying they are likely to buy crypto in the next year. However, the majority of interest is coming from those who already own cryptocurrency or have exposure to Bitcoin through an ETF.

Male respondents, particularly those from 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.

The introduction of new, regulated Bitcoin ETFs may not attract many new investors, as those most likely to be interested are those who already own crypto or are male millennials.

While crypto is still struggling to attract investors beyond Gen Z and millennial men, sustainable, long-term, and less volatile growth in the industry may depend on its ability to correct this demographic imbalance.

16% of Australians invested in crypto in 2023

Crypto's Popularity in Australia

Australia has retained its position as a global leader in cryptocurrency adoption, with 23% of adults in the country owning digital assets. This is a 2% jump from the previous year and includes significant increases among Millennials, Victorians, and women. Australia has the highest rate of cryptocurrency adoption among developed nations and the 8th highest globally.

The Gender Divide

The number of females reporting that they own digital assets increased from 11.9% to 16.1% year-on-year. In contrast, men were more likely to report making a profit (70%) than women (55%), but women reported larger average profits for the second year running.

Age and Crypto

Adoption among Millennials surged from 35.6% to 40.7%. However, the collapse of FTX has slowed adoption among Gen Zs and Gen Xs, with fewer in these age groups owning crypto compared to the previous year. Crypto makes up 31% of next-generation investors (aged 18-24) portfolios on average.

Crypto and the Future of Finance

Around a third of all Australian adults (31%) agree that cryptocurrency is the future of online financial transactions, a 3% increase from the previous year.

Crypto and Inflation

According to Gemini's Global State of Crypto report, 43% of Australians first invested in crypto in 2021, with many citing inflation as a key reason.

Crypto Scams and Regulation

The Australian Treasurer, Jim Chalmers, has announced plans to offer greater protection for consumers as Australians lost $158 million to investment scams between January and May of 2023, with the majority related to cryptocurrency. The top reason Australians don't own digital assets is now concern over the sector's regulation.

Crypto and Taxation

While cryptocurrency is unregulated in Australia, it is still subject to the tax provisions of the ATO, and investors may be subject to capital gains tax reporting.

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