While youth and minority status are strong predictors of crypto-awareness, political affiliation is not.
A recent Grayscale-backed study suggests more than half of Americans agree that “cryptocurrencies are the future of finance.”
The sentiment appears to span across the political aisle, as both 59% of Democrats and 53% of Republicans agree with the statement.
Who loves crypto?
The study, conducted by The Harris Poll on Grayscale’s behalf, surveyed over 2000 Americans over 18 years old between October 6 and 11. The data were weighted based on demographic characteristics like age, sex, and race, to reflect each group’s representation in the general population.
About half of Americans (49%) said they were familiar with cryptocurrency. As has been found in previous polls, this awareness was highly concentrated among younger generations (70% aged 18 to 34; 62% aged 35 to 44).
Minority status was also a strong predictor, with awareness being stronger among Black and Hispanic Americans (60% / 62%), versus White Americans (42%). Similarly, about one-third of Blacks, Hispanics, and young people said that rising inflation and a slowing economy have made them more interested in crypto. A roughly similar proportion already own digital assets.
Crypto has been one of the hardest-hit asset classes in 2022, losing over two-thirds of its total market cap since last November’s highs. However, Bitcoin proved relatively stable compared to other asset classes in Q3 specifically, even matching the British Pound in terms of volatility.
Among those already invested, many simply got in due to reading something exciting about the asset class, or on the recommendation of friends or family. Only 25% entered on the recommendation of a financial advisor.
Politics not a factor?
On the regulatory front, Democrats and Republicans have largely overlapping views.
88% of Democrats and 77% of Republicans agree that the U.S. crypto industry requires clearer regulation. Meanwhile, over 80% of both political factions desire a “consumer-first” regulatory approach, allowing consumers to invest in the digital assets they want while receiving necessary information about each product.
Things are a bit different in Congress, however. Democratic representatives are especially leery of the crypto industry, frequently voicing concerns about consumer protection, sanctions evasion, and environmental harm.
Republicans, by contrast, have been some of the loudest voices urging fellow lawmakers to let the industry flourish with lighter rules. The three active senators known to own Bitcoin – including Ted Cruz – and the SEC’s “Crypto Mom” Hester Peirce are all on the political right.
One Bitcoin-loving senate Republican, Cynthia Lummis, has deliberately partnered with Democrat Kirsten Gillibrand to form a bill providing clear regulatory standards for crypto, to prove that both parties can find common ground when discussing the sector.