Working Paper

Do You Even Crypto, Bro? Cryptocurrencies in Household Finance

Abstract: Using repeated large-scale surveys of US households, we study the cryptocurrency investment decisions and motives of households relative to other financial assets. Cryptocurrency holders tend to be young, male, and more libertarian relative to non-crypto holders. Crypto holders expect much higher rates of return for crypto and perceive it as relatively safer than non-holders do. For those holding cryptocurrencies, changes in Bitcoin prices translate into their purchases of durable goods. Finally, information about historical returns of cryptocurrencies in an information provision experiment embedded in the survey leads individuals to increase their desired crypto holdings and increases their actual cryptocurrency purchases subsequently. We compare these views and behaviors to those of households toward other financial assets and argue that cryptocurrency is unique in many of these respects.

JEL Classification: E4; G5; D8;

https://doi.org/10.26509/frbc-wp-202616

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers

Publication Date: 2026-07-14

Number: 26-16