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Since its inception, the cryptocurrency market has been marked by vulnerabilities and a particularly high level of volatility—proving to be a wild ride for those who invest in this digital currency. In 2022, crypto company and project failures, the rise and fall of Terra and stablecoin UST, the downfall of the FTX exchange, and rising interest rates all contributed to the ups and downs. Our latest Logica® Future of Money Studyincludes a special highlight report on this very dynamic market. To better understand what the future might hold, we have been examining trends and insights regarding Americans’ crypto usage, awareness and investment barriers.
Barriers to Owning Crypto
Not surprisingly—based on the seemingly capricious nature of the market—perceived risk is a main reason Americans feel unlikely to own crypto in the next five years. Other top barriers noted in our recent study were a lack of knowing how to invest in crypto and a lack of information from trusted sources. These reasons offer an opportunity for financial companies to educate customers on what crypto is all about and how to use it, or not, as part of an overall investment strategy.
Crypto Future Usage
What are Americans looking for to feel more comfortable with crypto in the future? Some of the reasons non-users of crypto gave included tying cryptocurrency value to the U.S. dollar (19%), more assurance that payment into crypto was secure (17%) and less volatility with crypto value (17%). Our Logica® Future of Money Study takes a look at what it might take: download the highlight report to learn more.
Crypto By Generation
Currently, Millennials lead the pack in ownership of crypto at 24% with Gen X pulling in second at 13%. Of those not yet owners, 53% of Millennials believe they will likely own crypto in the next five years, followed by Gen Z at 47%, Gen X at 38% and Boomers at 16%. With so many more people thinking about owning crypto than actually do right now, there is an opportunity for financial brands to start thinking about the best ways to communicate investment strategies that include this asset.
What to learn more about the Future of Money, attitudes and trends about cryptocurrency and other areas included in our study? Reach out to us! You can also download the Logica® Future of Money Study highlight report here.