29 Jan 2025 Anthony Lehrman
Coinme's Crypto Literacy Survey Finds Increased Knowledge Driving Mainstream Crypto Adoption
Cryptocurrency is gaining broader acceptance among American investors, with knowledge levels correlating strongly to participation. Crypto Literacy Month, an annual survey and educational effort led by crypto exchange Coinme, found that 98.6% of respondents who reported substantial crypto knowledge owned digital assets, compared to just 32% of those with limited understanding.
The survey, which polled 670 U.S. respondents across demographic groups, revealed a marked increase in crypto expertise since 2022. Nearly one-third (31.8%) of participants reported knowing "a great deal" about cryptocurrency, up from the 2022 survey’s findings of 11%.
This growing familiarity appears to be reshaping risk perceptions. The percentage of Americans viewing cryptocurrency as "extremely risky" dropped from 43.1% in 2022 to 35.2% in 2024, with more respondents now categorizing digital assets as "somewhat risky" or "neutral."
"Cryptocurrency is entering a pivotal phase where broader public understanding can unlock its full potential as both a financial tool and a mainstream investment," said Neil Bergquist, CEO of Coinme. "The survey shows how knowledge drives confidence, but it also reveals persistent gaps that the industry must address to ensure equitable access and safe adoption."
‘A Turning of the Tide’
The shift in sentiment comes amid increasing institutional adoption and regulatory developments. Bergquist pointed to several key market catalysts, including the Security Exchange Commission's approval of bitcoin exchange-traded funds in January and the recent upswell of political support expected following the potential replacement of former SEC chair Gary Gensler with crypto supporter Paul Atkins.
"The bitcoin ETF received some of the largest capital inflows out of any ETF ever created. That was a big turning-of-the-tide moment where everyone's talked about this institutional adoption is coming. Well, here it is," says Bergquist.
"To get the SEC, which has historically been an adversary to the industry, to approve a more traditional Wall Street financial product where large pools of money and sovereign wealth funds, hedge funds, can easily buy bitcoin, that was a huge stamp of approval."
The presidential election cycle has also thrust crypto into mainstream political discourse. The survey found that 59% of respondents identified regulatory clarity as their top crypto-related priority for the next administration.
"I've been a crypto entrepreneur for 10 years and for a long time, I'd never seen crypto really being seriously talked about on the federal level before," Bergquist says. "Now it's like people are understanding it. And that's really encouraging to see the policymakers actually understanding it. And frankly, it has bipartisan support in Congress. It's not supposed to be a red or a blue thing."
Knowledge Gaps
Despite growing institutional interest, significant knowledge gaps remain. The survey found only 22% of respondents could correctly identify a private key's role in managing cryptocurrency. Understanding of more advanced concepts like decentralized finance and staking remains limited, with just 14% grasping DeFi's functionality and 9% understanding staking's role in blockchain systems.
These knowledge gaps haven't deterred younger investors. The data shows stark generational differences in cryptocurrency outlook, particularly regarding growth potential. Bergquist cites recent data from Bank of America showing 28% of younger investors, ages 21 to 43, see greater growth potential in crypto and digital assets, whereas only 4% of investors over the age of 44 agree with this growth outlook.
Banks have remained hesitant to offer crypto services, particularly following high-profile incidents like the FTX collapse. However, this cautious approach might risk alienating younger customers, and growing institutional investment and bipartisan political acceptance of crypto could begin to convince older demographics.
Long-Term Adoption Outlook
The survey also highlighted crypto's transition from being thought of primarily as a speculative investment to a practical financial tool. Now, 29% of respondents consider cryptocurrency part of their long-term retirement strategy, while 22% report using it for everyday transactions.
This practical adoption is driving innovation in payment systems. Bergquist described emerging use cases where cryptocurrency could offer advantages over traditional payment methods.
"Crypto has a lot of benefits to be used for payments because there's no chargeback risk, there's no credit card processing fees,” he says. “So, it's actually faster and cheaper as a payment rail, especially because it's digitally native."
The infrastructure supporting these use cases continues to mature. Developments in areas like stablecoins, digital currencies pegged to traditional assets, are making crypto more accessible to mainstream users.
"You might not care about blockchain or the fact that it's USDC, you just care about dollars, but you care about being able to move those dollars around peer to peer, friends, and family, the way you move information," Bergquist says.
Still, challenges remain in creating seamless user experiences.
"Ideas are easy, execution is very difficult," Bergquist acknowledges. "Making it happen takes a very long time. Sometimes it's more like an iceberg than it is like an earthquake. It takes time and slowly grinds and makes its way and eventually changes the landscape over time."
But for advocates of mainstream adoption, the convergence of rising knowledge levels, institutional investment, practical applications, and political momentum should be encouraging signs. The cryptoliteracy.org survey indicates that understanding breeds confidence, a dynamic that could accelerate as educational resources and user-friendly interfaces make digital assets more accessible to the general public.
Work remains in addressing knowledge gaps and creating regulatory frameworks that balance innovation with consumer protection. The success of cryptocurrency's mainstream adoption ultimately depends on the industry's ability to work on these broader issues while delivering on the technology's promise of a more efficient, accessible financial tool.
"Overall, the survey emphasizes that knowledge is a crucial enabler of trust and adoption of crypto. The crypto industry can benefit from enhancing crypto literacy to enable broad understanding and adoption of digital assets," said Bergquist.
"With more support than ever in the White House and Congress, this coming year presents a unique opportunity for crypto to cross the chasm and become utilized as a generally accepted store-of-value and mechanism for payments in addition to further adoption for several unique blockchain and DeFi use cases."
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