Reports of cryptocurrency’s demise are greatly exaggerated. Fifty-six percent of consumers express at least some interest in buying cryptocurrency in the next year, and crypto is not going away. Moreover, consumers under financial hardship are particularly likely to buy crypto, and not just as an investment vehicle. Forty-three percent want to use it to make payments. As economic conditions tighten, consumer interest in financial and digital assets that generate income may grow.
The average consumer has more than 65% of their available funds in a bank account, digital wallet or cash, and just 2.5% of the average consumer’s assets are in cryptocurrency. Crypto ownership is most prevalent among high-income consumers, but the consumers most exposed to economic pressures are allocating a disproportionate share of their savings and investible assets to cryptocurrencies.
For Paying With Cryptocurrency: Can Crypto At Checkout Become A Profit Center For Merchants?, a PYMNTS and BitPay collaboration, PYMNTS surveyed 2,334 consumers about their understanding and use of cryptocurrencies and 202 merchants about their experiences with cryptocurrency.
• Interest is broad. Approximately one in four United States consumers planned on purchasing cryptocurrency as an investment before financial markets in the country began to decline in the first half of 2022, especially millennials and financially distressed consumers. Consumers’ interest in cryptocurrency as an investment varies by age group and income level, but one-quarter said they were very or extremely likely to invest in crypto. Overall, 56% of consumers expressed at least mild interest in buying cryptocurrency in the next year.
• Although many invest in cryptocurrency to make money, one-third of consumers want to do so mainly to make purchases, especially those feeling the most financial pressure. Approximately one-third of crypto holders want to invest in crypto to make payments, and among those living paycheck to paycheck with issues paying bills, that share is 43%.
• Should the investment market for crypto remain stable, consumer markets — including streaming services, financial services and restaurants — may benefit as crypto investors cash out of their holdings. Fifty-eight percent of consumers say they plan to use profits from their crypto investments to pay for streaming services, and 58% also say they plan to use their profits for financial services. The providers of these services may be well situated to capitalize upon the interest shown by cryptocurrency enthusiasts.
Cryptocurrency has gone from an obscure commodity used by an extremely niche group of consumers to a mainstream part of many consumers’ investment portfolios in a fairly short time. This report explores factors informing this development and details current perceptions that could power future uses of crypto.
To learn more about the changing face of crypto, download the report.