A new study has highlighted the extent of cryptocurrency adoption by US citizens, with various assets becoming preferred investment choices over traditional means.
According to The State of Consumer Banking and Payments report published on January 25, 2022 by Morning Consult, most American adults at 24% owned cryptocurrencies in 2021.
The figure was slightly higher at 23% of Americans who own certificates of deposit. Notably, a certificate of deposit refers to a savings account that holds a fixed sum of money for a specific period of time.
Elsewhere, most respondents at 31% owned brokerage accounts while 14% held a Robo-adviser investment account. The study was conducted from December 23-25, 2021, while sampling feedback from 2,200 American adults.
Growing cryptocurrency ownership aligned with general market growth in 2021 led by Bitcoin and a host of meme coins. Additionally, the last year ushered in an influx of institutional investors into the crypto space.
It should be noted that keeping money in the bank and investing in cryptocurrencies offer opposing scenarios based on factors such as risk and reward. Bank savings accounts are insured and considered stable in value, while cryptocurrencies are volatile with no clear support.
Crypto Offers the Opportunity to Earn Money Quickly
However, digital currencies have offered an opportunity to make quick money over the years. For example, in 2021 alone, the value of Bitcoin jumped at least 60% despite a series of price corrections.
In particular, saving money in the bank in recent years has come under scrutiny due to the low interest rate environment and the impact of rising inflation.
The crypto ownership figures also complement Finbold’s previous report indicating that around 10.2% of the world’s internet-using population owns some form of cryptocurrency.
Elsewhere, as previously reported, around 55% of crypto holders in the US and UK would like to earn their wages in digital assets due to greater financial flexibility.
On the general outlook for the cryptocurrency industry, the report said the adoption rate would likely continue to grow as the space has proven that this is not a “passing fad.”
Additionally, Morning Consult noted that the younger generation would drive adoption associated with the continued entry of traditional entities.
At the same time, the study recommended that financial institutions allocate more internal resources to exploring cryptocurrency opportunities. The researchers also predict that more consumers will be curious about the crypto industry.