The latest edition of Wharton’s Consumer Cryptocurrency Confidence Report reveals a notable shift in public perception and adoption of digital assets. With rising ownership rates and broader use cases—both online and offline—cryptocurrencies are no longer niche investments confined to tech-savvy enthusiasts. Instead, they're becoming part of everyday financial behavior, a phenomenon researchers now refer to as “crypto creep.”
This growing integration into mainstream commerce and consumer decision-making is backed by data from the Consumer Cryptocurrency Confidence Index (c3i), introduced in January 2023 by Wharton marketing professors David Reibstein, Cait Lamberton, and John Zhang, along with Martin Paul Fritze of Ludwig Maximilians University of Munich. The index tracks monthly consumer sentiment and has uncovered strong correlations between confidence levels and cryptocurrency market performance, particularly for Bitcoin and Ethereum.
Growing Adoption Across Demographics
Recent findings show that one-third of survey participants now own cryptocurrency, with the highest concentration among men aged 25–44. This demographic dominance reflects early adopter trends but also hints at generational shifts in financial trust and technology comfort.
Beyond ownership, there's a perceptible rise in perceived usability. Between January 2023 and December 2024, the percentage of respondents who believed online retailers accept crypto increased from 16% to 25%. Similarly, awareness of offline crypto acceptance—such as at physical stores or through ATMs—has grown, exemplified by sightings of Bitcoin ATMs in major retail chains like Costco.
“There’s ‘crypto creep,’ with more and more consumers and retailers moving to it.” — David Reibstein
This quiet infiltration into daily life mirrors how digital payments evolved over the past two decades. What was once fringe is now functional, accepted, and increasingly expected.
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Crypto as Long-Term Investment vs. Currency Debate
While regulatory and technological debates continue over whether cryptocurrencies qualify as “real money,” consumers are making their own decisions. Nearly half of respondents view crypto as a long-term investment, despite its lack of government backing or centralized control.
This mindset aligns more with asset speculation than daily transactional use. Yet, the report suggests the conversation may be shifting: instead of focusing solely on whether crypto can replace fiat currency, the key question now is whether people believe it offers a secure, decentralized system for storing and transferring value.
Still, experts remain cautious. Legendary investor Warren Buffett has long been skeptical, calling cryptocurrencies speculative and lacking intrinsic value. Though he holds a minor stake in a Brazilian fintech with crypto capabilities, his overall stance remains conservative—a signal to risk-averse investors.
Reibstein acknowledges this tension:
“To a large part, it is sort of a gamble, an investment… If you wanted to invest in something really, really safe, don’t invest in crypto because it still is in its embryonic stages.”
Volatility remains a concern, though recent data shows it has “ebbed” compared to previous years. As infrastructure improves and institutional involvement grows, price swings may stabilize further—potentially attracting even more mainstream users.
Political Influence and Market Sentiment
One of the most striking findings in the report is the political divide in crypto ownership and perception. More Republicans than Democrats currently own cryptocurrency, and they are significantly more optimistic about its future under certain administrations.
President Donald Trump’s personal investments in the space—including through World Liberty Financial, a crypto exchange that launched its own stablecoin—have amplified interest. Reports suggest his crypto holdings make up nearly 40% of his net worth, or about $2.9 billion.
Reibstein notes:
“Trump jumped in where his followers already were… He has made crypto perhaps appealing to a broader audience.”
This alignment between political figures and digital asset advocacy has tangible market effects. Following news of a “lighter regulatory approach” expected under Trump’s administration, Bitcoin surged past $100,000 in December 2024—a psychological milestone that reinforced confidence among supporters.
However, this raises concerns about the very foundation of crypto: decentralization.
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Regulatory Risks and Decentralization Paradox
Ironically, while cryptocurrencies were designed to operate outside centralized control, their value is increasingly influenced by centralized actors—governments, regulators, and political leaders.
The report highlights a paradox:
“While cryptocurrencies are fundamentally built on decentralized principles… consumer confidence may increasingly be shaped by interventions from centralized actors.”
Republican respondents, for example, expressed lower trust in institutions like the SEC or Federal Reserve, which partly explains their attraction to decentralized finance. Yet, when those same institutions signal lighter oversight, prices soar—suggesting that market participants still react strongly to top-down policy cues.
Reibstein warns of potential risks:
“There is the risk that safeguards being installed against crypto are less likely to occur… I think that’s what those investing in crypto want — less regulation. It does add some risk as it continues to grow.”
As adoption expands, the balance between innovation and investor protection becomes critical. Overregulation could stifle growth; under-regulation could enable fraud. In 2023 alone, losses from crypto-related scams jumped 45% to $5.6 billion, according to FBI reports.
Yet, despite scandals, growth persists.
Looking Ahead: Penetration Over Price
For researchers, the most telling metric isn’t price—it’s penetration. How deeply are cryptocurrencies embedded in consumer habits? How many merchants accept them? How often are they used beyond speculation?
These questions define the next phase of crypto evolution. While early adopters focused on returns, long-term sustainability depends on utility.
Reibstein observes:
“Despite those scandals, it continues its upward trend in both volume, prices, and penetration with investors and with merchants. Penetration is perhaps the most important metric for us to be paying attention to.”
And while some—like his parents—may never embrace digital assets, the broader trajectory is clear: crypto is moving from the margins to the mainstream.
Frequently Asked Questions (FAQ)
Q: What is 'crypto creep'?
A: 'Crypto creep' refers to the gradual but widespread adoption of cryptocurrencies in everyday financial activities—from retail purchases to long-term investing—driven by increasing consumer confidence and merchant acceptance.
Q: Who owns cryptocurrency the most?
A: According to the report, men aged 25–44 are the most active group in owning crypto. Additionally, Republicans are more likely than Democrats to hold digital assets.
Q: Is cryptocurrency considered safe for conservative investors?
A: Not yet. Experts like Warren Buffett remain cautious, citing high volatility and lack of intrinsic value. It's generally seen as a higher-risk investment suitable for those with risk tolerance.
Q: How does politics influence crypto markets?
A: Political figures like Donald Trump have boosted visibility and confidence in crypto through personal investments. Policy expectations—such as lighter regulation—can directly impact market prices.
Q: Are cryptocurrencies replacing traditional money?
A: Not fully. While some use them for transactions, most treat them as speculative or long-term investments rather than daily currency alternatives.
Q: What drives long-term crypto adoption?
A: Beyond price surges, real adoption hinges on usability—how easily people can spend, save, and secure their digital assets across platforms and retailers.
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As "crypto creep" continues, one thing is certain: digital assets are no longer just a technological experiment—they’re becoming part of the financial fabric for millions worldwide. Whether this trend leads to full normalization or new cycles of boom and bust will depend on innovation, regulation, and consumer trust.