Confidence in the safety and reliability of crypto has dropped following the struggles of 2022


Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day’s top stories directly to your inbox. Sign up here!

(Kitco News) – The abysmal year that the cryptocurrency industry faced in 2022 has had a detrimental impact on how the wider public perceives the asset class, according to the results of a Pew Research Center survey conducted March 13-19.

Overall, 17% of U.S. adults say they have ever invested in, traded or used a cryptocurrency, a figure that has remained roughly unchanged from previous surveys conducted in 2021 and 2022.

While years of advocacy from crypto proponents have had an effect on increasing awareness, with 88% of those surveyed saying they know what cryptocurrencies are and have at least a minimal level of understanding, 75% of those respondents said that they are not confident that the current ways to invest in, trade or use cryptocurrencies are reliable and safe.

That translates to roughly two-thirds of U.S. adults holding an unfavorable opinion of the crypto industry in its current state.

Among those who have heard about cryptocurrency, 39% say they are not at all confident, while an additional 36% indicated that they are not very confident in the reliability and safety of cryptocurrencies. Only 2% said they were extremely confident, while 4% said they were very confident. 18% said they were somewhat confident.

There was a noticeable split in terms of age, with adults aged 50 and older more likely to say they are not confident in its reliability and safety (85%) as compared to their younger counterparts (66%). And women showed more skepticism when it comes to investing in, trading or using cryptocurrencies, with 80% saying they are not confident as compared to 71% of men.

Cryptocurrency holders were also more likely to express confidence in the crypto exosystem, with one-in-five crypto users responding positively to the question as opposed to the 2% of non-crypto holders who are familiar with cryptocurrency but have not invested. But even the crypto investors expressed their concerns about its safety, with 43% of this group saying that they are not very or not at all confident in it.

Younger men remain the most dominant cohort within the crypto ecosystem, with 41% of male respondents aged 18 to 29 saying that they have invested in crypto as compared to 16% of women in the same age group.

There are also noble differences between racial groups, ethnicities and income levels, with 24% of Asian adults and 21% of Black or Hispanic adults saying that they have invested in or used a cryptocurrency, compared to 14% of White adults. 22% of adults with upper incomes and 19% of those with middle incomes have invested in the asset class while only 13% of those in the lower income bracket have.

The majority (74%) of those who have used cryptocurrencies did so for the first time one to five years ago, while only 16% engaged with the industry in the past year, highlighting the effect the crypto winter had on adoption.

The down year also resulted in 31% of those who had previously engaged with cryptocurrency exiting the system completely. Lower-income households (43%) were more likely than those in middle- (30%) or upper-income (21%) households to have given up cryptocurrency, and women were more likely than men to dump their holdings (37% vs. 29%).

Roughly 20% of cryptocurrency users say the investments have hurt their personal finances at least a little, while 60% said that they have neither helped nor hurt. Only 7% say that cryptocurrency has helped their finances a lot and 3% say that it has hurt a lot. ­

Overall, the crypto market has underperformed the expectations of holders, with 45% of respondents reporting that their investments performed worse than expected as compared to 15% that said they have done better than expected, 32% that said they have done about the same as expected and 7% who are unsure.


Post Disclaimer

The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.


Please enter your comment!
Please enter your name here