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Do You Even Crypto, Bro? Cryptocurrencies in Household Finance

Author

Listed:
  • Bernardo Candia
  • Olivier Coibion
  • Yuriy Gorodnichenko
  • Michael Weber

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.

Suggested Citation

  • Bernardo Candia & Olivier Coibion & Yuriy Gorodnichenko & Michael Weber, 2026. "Do You Even Crypto, Bro? Cryptocurrencies in Household Finance," Working Papers 26-16, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwq:103570
    DOI: 10.26509/frbc-wp-202616
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    More about this item

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • G5 - Financial Economics - - Household Finance
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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