4Alpha Research: A Comprehensive Analysis of Bitcoin Holders in the U.S.: Demographics, Politics, and Morality

4Alpha Research Researcher: 0xamuel

Recently, The Nakamoto Project released a research report on Bitcoin holders in the United States. The report analyzes the adoption of Bitcoin in the U.S. from three aspects: demographic characteristics, political leanings, and moral foundations, aiming to explore other factors that may influence Bitcoin ownership and attitudes beyond standard demographic data.

Key Points Summary

• Younger males are more likely to hold Bitcoin: Bitcoin holders are generally younger and predominantly male, but in other aspects such as race, ethnicity, income, education, and financial literacy, they are similar to the overall U.S. population.

• Bitcoin ownership is unrelated to political factors: Although there are significant differences in attitudes towards Bitcoin among different political parties in the U.S., The Nakamoto Project anticipates that these differences may lead to extreme outcomes, such as conservatives and liberals being more willing to hold Bitcoin. However, the survey results show no significant relationship between Bitcoin ownership and political leanings. The number of Bitcoin holders is roughly the same across different political backgrounds in the U.S.

• Values of Bitcoin holders: The survey uses Moral Foundations Theory to analyze the values and identity of Bitcoin holders. The results indicate that Bitcoin ownership does not have a clear correlation with specific moral foundations. In contrast, Bitcoin ownership is more influenced by the understanding of the concept of Bitcoin, recognition of its protocols and assets, and moral perceptions of Bitcoin.

Research Background

Despite Bitcoin being a household name, information about Bitcoin holders is relatively limited. While about 95% of Americans are aware of the concept of Bitcoin, approximately 1 in 7 Americans currently own Bitcoin, but detailed data remains scarce.

Although other organizations have conducted similar research, these studies often have limitations, such as small sample sizes, overly broad research scopes, or focusing on only a few indicators. Additionally, most studies primarily discuss cryptocurrencies as a whole rather than focusing specifically on Bitcoin. Therefore, The Nakamoto Project particularly focuses on Bitcoin in this report and limits the research scope to the United States.

To explore the prevalence of Bitcoin in the U.S., The Nakamoto Project collaborated with Qualtrics to survey 3,538 adult Americans. This survey aimed to collect demographic information, moral inclinations, and attitudes towards Bitcoin from respondents. Data collection was divided into two phases: the initial sample was collected in November 2023, consisting of 3,022 respondents; the supplemental sample was collected in March 2024, adding 516 respondents, focusing on the impact of Bitcoin ETFs on public perception.

Demographic Characteristics Analysis

The Nakamoto Project's research found that the group of Bitcoin holders in the U.S. is very diverse. There are no significant differences between Bitcoin holders and non-holders in terms of race, ethnicity, religion, marital status, income, education level, or financial literacy. From a demographic perspective, the two groups perform similarly on most indicators. However, Bitcoin holders show significant differences in age and gender: they are more likely to be younger and male.

The chart below shows the proportion of Bitcoin holders categorized by gender and age. A survey by Block found that this gender imbalance is less pronounced in international samples, being more prominent in studies conducted in the U.S.

Impact of Political Leanings on Bitcoin Holders

From a political perspective, there are no significant differences between Bitcoin holders and non-holders. Although Bitcoin has faced criticism from various political factions since its inception, particularly from the political left in recent years, its staunchest supporters are often Republicans and libertarians, leading many to mistakenly believe that Bitcoin is a right-wing or libertarian phenomenon. As a result, many assume that Democrats or self-identified liberals are less likely to own Bitcoin.

To measure the political leanings of Bitcoin holders, The Nakamoto Project designed five questions exploring respondents' overall political stance, social issues, economic issues, and self-identification of their political stance. Although respondents had varying answers to these questions, the results indicate that the political distribution of Bitcoin holders is very similar to that of non-holders, with most people concentrated in the middle of the political spectrum. Compared to non-holders, Bitcoin holders are more likely to consider themselves in extreme positions, specifically with more people identifying as very liberal (+5.7%) or very conservative (+2.3%). To clarify respondents' political leanings, The Nakamoto Project asked respondents to rate themselves on a scale of 1-10, with lower scores representing more liberal views and higher scores indicating more conservative views. Similar to non-holders, Bitcoin holders appeared across all score ranges and were more likely to appear in the more extreme segments. However, the results show no significant differences between Bitcoin holders and non-holders on this scale. Surprisingly, respondents who identified as very liberal were the most likely to own Bitcoin (21.9%), followed by very conservative individuals (17.6%), while moderates had the lowest ownership rate (14.3%). The only significant difference is that libertarians are more likely to hold Bitcoin, although they represent a very small proportion of the overall respondents (only 3%). Overall, the political distribution of Bitcoin holders does not significantly differ from that of the general U.S. population. Political rhetoric from politicians, media elites, and social media users regarding Bitcoin ownership is often misleading, as Bitcoin ownership has no direct relationship with political factors.

Moral Foundations and Their Relation to Bitcoin Holders

The Nakamoto Project hypothesized that moral foundations might predict whether someone holds Bitcoin. To validate this hypothesis, they employed Moral Foundations Theory. This theory posits that while human moral reasoning is innate, it can change with learning over time. Initially, the theory proposed five core moral foundations: fairness, care, loyalty, authority, and sanctity, later adding a sixth foundation—liberty. Different cultures and political ideologies place varying degrees of importance on these foundations, which can explain differing moral and political inclinations. For example, liberals tend to prioritize fairness and care, while conservatives value all six foundations more evenly.

In this survey, to clarify whether Bitcoin holders are more similar to liberals or conservatives in terms of moral foundations, The Nakamoto Project asked respondents to rate various statements on a scale from 1 to 7, with higher numbers indicating greater agreement. For instance, a statement regarding "care" is "Caring for those who are suffering is an important virtue." The survey results indicate that there are indeed some differences in moral foundations between liberals and conservatives, but they are not as pronounced as previously thought; rather, they are quite similar. Notably, Bitcoin holders exhibit a unique characteristic of being more focused on cultural freedom and equality; they align with conservatives on sanctity and loyalty, with liberals on care, and are positioned between liberals and conservatives on economic freedom and authoritarianism.

Thus, we can conclude that while Bitcoin holders' performance on moral foundations does not fully align with traditional liberal or conservative classifications, they tend to lean towards liberal values, especially in terms of freedom and fairness. At the same time, their positions on other moral foundations lie between those of liberals and conservatives, indicating that Bitcoin holders possess a unique diversity and complexity in their moral orientations.

Key Factors Influencing Bitcoin Ownership

Although demographic characteristics, political leanings, and moral foundations have little relation to whether one holds Bitcoin, the survey identified four key cognitions that significantly influence whether a person owns Bitcoin:

1. Trust in the underlying technology of Bitcoin: Including trust in its security and accuracy.

2. Knowledge about Bitcoin: Including current understanding of Bitcoin and attention to Bitcoin news.

3. Practicality of Bitcoin: Believing in Bitcoin's practicality for everyday transactions or investments.

4. Moral perception of Bitcoin: Believing that Bitcoin technology and its users are moral and that Bitcoin can improve society.

Respondents were asked to agree or disagree with statements related to these cognitions. For example, a statement regarding trust is "I believe blockchain is 100% accurate." The survey results show significant differences between Bitcoin holders and non-holders in these areas. Bitcoin holders generally have more confidence in its technology and view Bitcoin as morally positive, while non-holders exhibit distrust or neutral attitudes. These cognitive factors are key determinants of whether one holds Bitcoin. Understanding Bitcoin technology enhances trust in its network, leading to beliefs in its practicality and awareness of its potential social benefits. These factors may motivate individuals to purchase or invest in Bitcoin. Conversely, it may also be the case that individuals first purchase Bitcoin and view it as an investment, and as its value grows, their interest in the underlying technology increases, leading to greater recognition of its practicality and morality. While it is unclear which pathway leads to this cognitive change, the overall effect is positive, and the causal relationship may be bidirectional.

Conclusion

In the past, it was often believed that the political leanings of Bitcoin holders influenced their choices; however, the survey shows that Bitcoin holders do not exhibit a significant political bias. Bitcoin holders exist across all groups, whether liberal, conservative, or moderate. The only notable demographic difference is that Bitcoin holders tend to be younger and predominantly male.

The research indicates that Bitcoin ownership is not related to specific social or political identities but is closely linked to individuals' levels of knowledge and perceptions of Bitcoin. Bitcoin holders are often those who have a deep understanding of the technology, believe in its practical use, find it trustworthy, and view it as morally acceptable. This positive attitude drives them to hold Bitcoin, rather than simple political or social identification.

Ultimately, this suggests that the popularity of Bitcoin is not confined to a specific political faction or social group but is driven by individuals' understanding and acceptance of the technology. This also means that the future development potential of Bitcoin depends on the public's recognition of its value and utility, rather than political divisions.