Decline in Consumer Cryptocurrency Use Highlights Challenges Despite Market Growth
Despite the ongoing surge in the overall value and ownership of cryptocurrencies like Bitcoin and Ethereum, recent data reveals a significant decline in the use of cryptocurrencies for everyday consumer transactions in the United States. This paradox underscores persistent challenges facing digital currencies as they seek to transition from speculative assets to practical payment tools.
Declining Usage Amid Rising Ownership
A detailed opinion analysis from the Knoxville News Sentinel notes that the proportion of U.S. consumers actively using cryptocurrency for payments—including purchases and money transfers—has dwindled to less than 2 percent as of 2024, down from nearly 3 percent in 2021 and 2022. This decline is consistent across diverse demographic and financial groups, suggesting a broad-based reduction rather than isolated phenomena.
Despite this, overall cryptocurrency ownership has nearly doubled since the end of 2021, with approximately 28 percent of American adults owning cryptocurrencies in 2025, equating to about 65 million people. Moreover, 14 percent of non-owners plan to buy crypto this year, and 67 percent of current owners intend to expand their holdings. This ownership growth, however, largely reflects speculative accumulation driven by rising prices rather than active transactional use.
Persisting Barriers to Everyday Use
The original promise of Bitcoin as a peer-to-peer electronic cash system enabling direct transfers without intermediaries remains largely unfulfilled. Transactions continue to be plagued by issues such as slow processing times, high fees, and price volatility. These factors have hindered broader adoption as a practical payment method, with the currency’s utility increasingly seen as an investment vehicle rather than a means of payment.
An additional study by the Kansas City Federal Reserve confirms these trends, indicating shifts in consumer motivation for using cryptocurrencies. Whereas early users valued benefits such as privacy, speed, cost-effectiveness, and safety, recent years have seen users paying more out of payee preference than perceived advantages, underscoring a passive rather than proactive usage pattern.
Market and Regulatory Developments
Despite challenges in consumer use, institutional and corporate interest in cryptocurrencies is growing. For example, a 2025 Deloitte survey of North American CFOs revealed that a significant portion—about 23 percent—plan to use cryptocurrencies for investments or payments within the next two years, with higher adoption rates among large enterprises.
Regulatory progress has also made strides, including new U.S. legislation establishing a framework for stablecoin issuance, enhancing possibilities for these digital currencies in payments. However, this regulatory environment is still evolving, and its impact on increasing consumer cryptocurrency payments remains uncertain.
Security and Confidence Issues
Consumer confidence is a critical factor in adoption. Despite ownership growth, approximately 40 percent of cryptocurrency holders report concerns over the safety and security of the technology. Nearly 20 percent have experienced difficulties withdrawing funds from custodial platforms, highlighting ongoing risks and usability problems.
Conclusion: The Road Ahead
The cryptocurrency ecosystem stands at a crossroads. While ownership expands and institutional interest grows, consumer use for routine transactions is declining, hampered by slow, expensive transactions and volatility. For cryptocurrencies to fulfill their initial vision as digital cash, significant technological advances and regulatory clarity are required to overcome barriers to everyday use.