Growing Acceptance of Cryptocurrency Among U.S. Consumers

Recent findings from Deutsche Bank (DB) reveal a significant shift in American consumers’ attitudes toward cryptocurrency. The report, released on Wednesday, indicates that less than 1% of respondents consider crypto a mere “fad,” marking a substantial decline from previous years. Over half of those surveyed now view cryptocurrency as a vital asset class and a legitimate method of payment. Furthermore, 65% of participants expressed the belief that cryptocurrencies could eventually replace traditional cash.

The bank’s survey involved over 3,600 consumers across the U.S., U.K., and Europe, conducted between March and July. Analysts Marion Laboure and Sai Ravindran predict that the democratization of cryptocurrency is likely to progress further in the next 2-3 years, influenced by factors such as the introduction of exchange-traded funds (ETFs), decisions made by the Federal Reserve, and evolving regulations.

However, the outlook for cryptocurrency isn’t entirely optimistic. Bitcoin (BTC), the leading cryptocurrency by market capitalization, faces a challenging forecast for the remainder of the year. The survey revealed that a third of respondents believe the price of Bitcoin will remain below $60,000 by year-end, while only 12%-14% are hopeful that it will surpass $70,000. As of the report’s publication, Bitcoin was trading around $58,200. In terms of long-term expectations, opinions among consumers are divided: 40% are optimistic about Bitcoin’s future, whereas 38% anticipate its potential disappearance.

The sentiment surrounding stablecoins, which are designed to maintain a stable value, is equally cautious. Only 18% of survey participants believe that stablecoins will thrive in the future, while a notable 42% expect them to diminish in relevance. The survey pointed out that stablecoins backed by fiat currencies like the dollar or traditional commodities such as gold are perceived to have a better chance of retaining their value.

Concerns about the potential collapse of cryptocurrencies remain prevalent, with more than half of consumers expressing apprehension about such an event occurring within the next two years. Despite these concerns, crypto adoption in the U.S. and the U.K. has shown resilience in recent years. According to the ‘2024 Global State of Crypto’ report published by crypto platform Gemini earlier this week, the retail market appears poised for a resurgence.