ACCI Conference 2024

FINRA / ACCI Undergraduate Student Poster Competition Winner

This study investigates the demographic profiles and financial behaviors of cryptocurrency users who utilize cryptocurrencies for non-investment purposes. Using data from The Federal Reserve's 2022 Survey on Household Economics and Decision-making, the study focuses on 1107 participants who reported owning cryptocurrency in the past year. Respondents were categorized into 'non-investing users' and 'invest-only users' based on their crypto usage patterns. Descriptive statistics reveal distinct demographic disparities between the two groups. While 65% of invest-only users are white, only 39% of non-investing users identify as white. Conversely, non-white individuals, mainly Black and Hispanic respondents, are more prevalent among non-investing users. Furthermore, more invest-only users possess at least a bachelor's degree than non-investing users. Chi-squared tests uncover significant associations between crypto usage patterns, financial comfort, and savings account ownership. Multivariate analyses highlight the influence of education and banking access on crypto usage patterns, with non-white individuals less likely to exclusively invest in crypto. Overall, non-investing crypto users exhibit lower levels of financial comfort and are more inclined to forego traditional banking services, indicating a potential reliance on cryptocurrencies as an alternative financial avenue. These findings underscore the need for further research into the motivations behind non-investment crypto usage and its implications for consumer behavior and regulatory frameworks. Understanding these dynamics is crucial for anticipating future trends and adapting policies to accommodate the evolving landscape of cryptocurrency usage.

Author(s): Ryan Witz