Is Crypto Really Seducing Latinos in the US?

Some surveys affirm Latinos are among the top investors in crypto and among the main holders of Bitcoins; others say they rarely touch that stuff

A collection of bitcoin tokens.
October 26, 2022 | 09:28 PM

Bloomberg — Are Many Latinos in the US Interested in Crypto?

According to a recent report, 94% of consumers in the US with a Hispanic or Latino background rarely or never use cryptocurrencies.

This finding by the 2022 LLYC Expedition Strategies US Hispanic Report seems to bury the hype created some time ago that Latino and Hispanic people in the US are among the top believers in cryptocurrencies and, as such, are among those who invest the most in such assets.

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One survey highlighting such interest was released in recent weeks by Morning Consult, which states that 24% of Latinos invest in cryptocurrencies. It also found that millennials in the US Latino community are 90% more likely to invest in crypto than the general population (79%).

Some projections even claim that 25% of Bitcoin (BTC) owners in the US are Latinos (compared to 16% among the general population), which would make Latinos one-quarter of all Bitcoin holders in the US.

Why do such discrepancies exist in measuring Latinos’ interest in crypto?

The main reason, besides the way participants are questioned in these surveys, probably has to do with the frequency with which crypto is used as an investment vehicle or as a transactional tool.

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Another pollster told Bloomberg Línea that it has to do with a crucial factor when considering demographic studies: the Latino community is extremely diverse, and includes many unbanked people as well as very sophisticated consumers.

”Latinos in this country tend to be very diverse and dispersed, and it’s difficult to conform a panel that includes people with common backgrounds”, said the pollster who asked not to be identified discussing surveying methodologies.

According to the pollster, the best way to find out the depth of the interest of the Latino community in crypto is to conduct surveys segmented by region and by levels of income.

However, they said, it is probable that one finding would be that Latinos’ interest in crypto does not only exist in general or open surveys, but also within closed communities with specific goals.

That is the case of the latest State of Hispanic Wealth Report by the National Association of Real Estate Professionals (NAHREP). It says that “Latinos are more likely to invest in cryptocurrencies.”

The report is based on a survey among NAHREP members, 29.9% of whom say they already invest in cryptocurrencies. According to the report, this is a very high number considering that “only 11% of adults in the US” invest in crypto.

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According to the pollster consulted by Bloomberg Línea, the same figures would result in surveys that ask people why would they use crypto: some answers would be, he says, “I want to send remittances at a cheaper cost”, or “I want to buy a product anywhere in the world without the hassle of the mainstream banking system.”

Beyond those Latinos with enough money to invest in crypto, people in the Latino community will use crypto for three main reasons: remittances, international payments, and avoiding discrimination by financial institutions, according to the pollster consulted.