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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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    Cited by:

    1. is not listed on IDEAS
    2. Vesa Pursiainen & Jan Toczynski, 2023. "Retail Investors’ Cryptocurrency Investments," Swiss Finance Institute Research Paper Series 23-51, Swiss Finance Institute.
    3. Michael L Smith & Nicole J Olynk Widmar & Valerie Kilders, 2026. "To the moon: Retail investor attention and sentiment across asset types in online media," PLOS ONE, Public Library of Science, vol. 21(6), pages 1-21, June.
    4. Christelis, Dimitris & Georgarakos, Dimitris & Jappelli, Tullio & Kenny, Geoff & Meyer, Justus, 2026. "Stockholding in Europe: Evidence from the Consumer Expectations Survey," Working Paper Series 3239, European Central Bank.
    5. Beckmann, Joscha & Geldner, Teo & Wüstenfeld, Jan, 2024. "The relevance of media sentiment for small and large scale bitcoin investors," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 92(C).
    6. Di Casola, Paola & Habib, Maurizio Michael & Tercero-Lucas, David, 2023. "Global and local drivers of Bitcoin trading vis-à-vis fiat currencies," Working Paper Series 2868, European Central Bank.
    7. Lashkaripour, Mohammadhossein & Hosseini, Seyedmehdi & Basirian, Elnaz & Bouri, Elie, 2025. "The path to sustainable Bitcoin mining: Challenges and barriers," Energy Economics, Elsevier, vol. 147(C).
    8. Di Casola, Paola & Habib, Maurizio Michael & Tercero-Lucas, David, 2025. "Global and local drivers of Bitcoin trading vis-à-vis fiat currencies," Journal of International Money and Finance, Elsevier, vol. 158(C).
    9. Francesco Grigoli & Damiano Sandri & Yuriy Gorodnichenko & Olivier Coibion, 2026. "Monetary Policy According to Households: Perceptions, Reactions and Channels," NBER Working Papers 35127, National Bureau of Economic Research, Inc.
    10. Civelli, Andrea & Jackson, Laura E., 2025. "Cryptocurrencies, stocks, and economic policy uncertainty: A FAVAR analysis," The North American Journal of Economics and Finance, Elsevier, vol. 78(C).

    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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