Crypto: This Is Why Americans Are Giving Up On It.
Adekunle Joshua
The rate of Americans holding crypto dropped from 11% in 2021 to 8% in 2022.
Issues like inflation, a hike in the federal interest rate, and regulation uncertainty are behind this plummet.
Americans have been at the forefront of the adoption of web3 and crypto as the country became the centre stage for some of the biggest controversies
A recent report from the Economic Well-Being of U.S. Households stated that Americans holding or using digital tokens fell from 11% in 2021 to 8% in 2022
Some have blamed this drop in popularity on the endless crypto winter, while others blame regulatory concerns, among other issues
Inflation, As of last year, the inflation rate in the U.S. was at 8.26%.
The rate hike by Fed, The director of investments at Illumen Capital, Octavio Sandoval, recently said, “When the Fed introduced restrictive monetary policies by increasing rates in 2022, this caused crypto to decline in valuation.”
Traditional investment, With the massive inflation and government policies affecting digital tokens, many Americans may use traditional investments.
Regulatory uncertainty, The SEC has been at loggerheads with numerous firms for many months. This has resulted in many of them being fined, affecting market sentiment.