Who Invests in Crypto? Wealth, Financial Constraints, and Risk Attitudes

Darren Aiello, Scott Baker, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson and Jason Kotter

No 31856, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We provide a first look into the drivers of household cryptocurrency investing. Analyzing consumer transaction data for millions of U.S. households, we find that, except for high income early adopters, cryptocurrency investors resemble the general population. These investors span all income levels, with most dollars coming from high-income individuals, similar to equity investors. High past crypto returns and personal income shocks lead to increased cryptocurrency investments. Higher household-level inflation expectations also correlate with greater crypto investments, aligning with hedging motives. For most U.S. households, cryptocurrencies are treated like traditional assets.

JEL-codes: E31 E42 G11 G23 G51 (search for similar items in EconPapers)
Date: 2023-11
New Economics Papers: this item is included in nep-ban, nep-fdg and nep-pay
Note: CF
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