Ahead of the U.S. presidential elections, crypto has emerged to become an unlikely determiner, triggering speculations about whether it will ultimately decide the next president.
Once considered a pariah, the crypto market is now being endorsed by both Republicans and Democrats. Former US president Donald Trump, who is once again running for the post, claimed in a rally recently that he is eyeing votes from “50 million crypto holders in the US” and that he will “keep their Bitcoins safe.”
The Trump campaign is now accepting donations in crypto, while the Biden administration had to put its federal agency Securities and Exchange Commission (SEC) on a leash, for making strict regulations against crypto businesses. Recently, two pro-crypto bills were passed in the Senate with bipartisan support of both Democratic Party and Republican Party.
So, what is it about the crypto community that has set the dice rolling in the race for US polls? Are there really 50 million crypto holders in the US as claimed by Trump? Why are parties heads over heels to seek the support of crypto voters?
In this article, we will dissect the demography of crypto holders in the U.S. with a focus on their age group, gender, race, and source of income. We will be using multiple surveys and study reports by Pew Research Centre, JP Morgan, and Paradigm Heights, released in the past year.
Crypto Community Statistics
In the last US presidential elections in 2020, there were 240 million eligible voters out of whom 66.1 % had submitted ballots for voting totaling 158 million votes. Biden had secured 81 million votes while Trump had landed 74 million votes.
When it comes to crypto holders, as per a survey carried by Pew Research Centre and published in the World Economic Forum (WEF) in 2023, a total of 17% US adults have traded in crypto. As of 2020, the US adult population stood around 82% of the total 330 million population, which is roughly 270 million. Out of these 270 million adult US citizens, 17% crypto holders accounted for 45.9 million population by December 2022. So by all accounts, the claim made by Trump of 50 million crypto holders in 2024 stands accurate.
17% US Adult Population are Crypto Holders
As per the survey by Pew Research Centre, there seems to be mass awareness around crypto as over 88% of American population seems to have heard about crypto once in their life time.
Coming to the 17% adult population that has dealt in crypto, the survey revealed some interesting aspects of their demography.
Highest Millennial, Least Baby Boomers
As per the Pew Research survey, out of 270 million US adult population, people in the age group 18-29 accounted for 28% of crypto holders, followed by 25% in the 30-49 age group and only 8% in the 50+ age group.
Highest Asian, Least White
Pew Research Survey reveals that in the US population, Asian ethnicity citizens accounted for the highest percentage of crypto holders with 24%, followed by Blacks at 21% and Hispanics at 21%. The white race accounted for the least at 14%.
Huge Number of Small Crypto Holders
Another study report by JP Morgan has revealed that most crypto holders in the US have only a small amount of crypto with median gross amount invested in crypto being $620 per user between 2015-2022. Out of total crypto holders, only 15% holders transferred amount worth one month of their salary in crypto while 80% invested less than their one month salary. Only 5% crypto holders invested more than three months of median salary of US citizens.
Biggest Crypto Investment Post-Pandemic
Data by Pew Research Centre has revealed that over 74% of crypto holders had made their investment during the past five years when Bitcoin saw a massive surge in its value. Only 10% of population had invested before 2018.
Cryptocurrency as a Financial Alternative
As per the Paradigm report, over 69% of Americans have expressed dissatisfaction with traditional financial institutions and have viewed cryptocurrency as a viable alternative. This reflects a significant shift toward decentralized financial solutions, particularly among those feeling left behind by conventional banking systems.
Educational Disparities in Crypto Ownership
As per the paradigm report, Crypto ownership is highest among college graduates at 26%, whereas only 13% of those with postgraduate degrees hold crypto. This variation may reflect differing benefits derived from the current financial system.
Significant Holdings Among Voters
The paradigm report says that over 11 million registered voters own more than $1,000 in cryptocurrency, representing a considerable segment of the electorate, especially when compared to stock ownership.
Rising Interest in Bitcoin Spot ETFs
The recent approval of Bitcoin spot ETFs has attracted significant interest, as the Paradigm report states that with 6% of voters already investing and others considering such investments. This indicates a growing mainstream acceptance of cryptocurrency investments.
Distrust in Political Handling of Crypto
As per Paradigm report, a significant portion of voters, nearly half, distrust both major parties in handling crypto policies. This skepticism spans across party lines, highlighting a potential opportunity for electoral gains if parties can formulate credible crypto policies.
Crypto Voters as a Swing Demographic
Paradigm report says crypto users, who make up about 17% of voters, are showing signs of becoming a swing demographic in elections, with their votes potentially influencing the outcomes.
Conclusion
Overall, the data suggest that crypto-aware voters not only form a significant part of the voters but also are the ones actively shaping the political ideology around financial and technological innovation. As such, they are expected to play a crucial role in upcoming elections, making them an essential demographic for policymakers to engage with.
Also Read: Trump, Biden Court Crypto Voters Ahead of 2024 Election
