OBSERVATIONS FROM THE FINTECH SNARK TANK
As I write this, there are 2,530 different types of cryptocurrency with a market valuation of about $123 billion (half of that in Bitcoin).
By the time you read this, there will be more cryptocurrencies on the market, but I can't tell you in which direction the valuation will go.
What I can tell you about are some of the demographics and characteristics of Americans who hold cryptocurrencies. I recently surveyed US consumers and asked them if had any cryptocurrencies, and if so, how much they held. Overall, 8% of respondents said they have at least one form of cryptocurrency with a mean amount of $8,400.
That percentage may dramatically increase soon, however--17% of respondents said they don't currently hold any cryptocurrencies but might do so in the future.
Here are five surprising statistics about Americans who hold cryptocurrencies:
#1: They're older than you think. If you thought all cryptocurrency holders were young, wide-eyed Millennials, you were wrong. Just 7% of Young Millenials (those in their 20s) have cryptocurrencies, in contrast to 11% of Older Millennials (in their 30s) and 12% of Gen Xers. Looking ahead, about a quarter of the 30-somethings, and one in five Gen Xers, say they might hold these new currencies in the future.
#2: They're richer and more highly-educated than you think. More than a third (35%) of crypto holders make more than $100k a year, in contrast to 16% of consumers who don't have cryptocurrencies. In addition, 37% of crypto-carrying consumers have a Master's degree or higher, in contrast to 14% of other consumers.
#3: They're more right-wing than you think. OK, I admit it: I thought cryptocurrency holders were left-wingers. Man, was I wrong. About half identify themselves as being on the right or far-right of the political spectrum.
#4: Some of them have a lot of their money in cryptocurrencies. Nearly one in five crypto holders have no money in an investment or brokerage account, yet hold, on average, more than $1,200 in cryptocurrencies. Seven percent of crypto consumers have less than $1,000 in a brokerage account, but have an average of $500 in cryptocurrencies.
#5: They like their banks more than you think. I got this one wrong, too. Would've guessed that crypto holders were anarchists looking to overthrow the existing banking infrastructure. Nope. Nearly two-thirds of these consumers aren't just loyal to their primary bank--they plan on doing more business with that bank. And more likely than not, that bank is one of the four megabanks--67% of crypto holders call a megabank their primary institution versus 42% of other consumers.
Regarding their loyalty to their banks, cryptocurency holders put their mouth where their money is. Nearly eight in 10 of them said they had referred their bank to their family and friends in the past year. Just half of other consumers have done that.
And by the way, when asked if they wanted their primary bank to make it easy to integrate fintech companies' offerings with their existing accounts, nearly half said yes.
If existing banks are getting disrupted, they're not getting disrupted by people who hold cryptocurrencies.
#6. The 6th thing to know about cryptocurrency holders is that they're predominantly male. Three-quarters of them are men. And of the group that says that they might get into cryptocurrencies in the future, 56% are men. But you might have guessed that already.
