The Weekly Wrap: 10% crypto owners in US and EU, Bitcoin Mining in Norway allowed

1. Federal Reserve report states that 12% of American adults owned crypto in 2021

The Facts:

• The latest “Economic Well-Being of US Household in 2021” survey by the FED’s Board of Governors interviewed 11,000 individuals anonymously. The report provides insights into issues related to citizens’ financial circumstances such as education, housing, and retirement.
• The report states that in 2021, “12% of adults held or used cryptocurrencies in the prior year” with 11% of adults holding them as investments and 2% for payments, and 1% for remittances.
• 46% of the “investment” category had an income above $100,000 and 29% had an income below $50,000.

 

Why it’s important:

• It is the first time that the FED’s household survey contained questions about cryptocurrencies acknowledging the fact that it is a topic of growing interest in the populace.
• The number of 12% of citizens holding cryptocurrencies in the US is roughly in line with a similar study by the ECB stating that 10% of Eurozone households own crypto assets. Thus, with some confidence, one can assume that ten percent of the populace has personal experience with crypto in Western countries.

 

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2. Norwegian Parliament Votes Down Proposal to Ban Bitcoin Mining

The Facts:

• Mid-month, the Norwegian parliament rejected a proposal to ban Bitcoin mining in Norway.
• Red Party (communist party of Norway) initially recommended a plan to restrict the Bitcoin mining activities in Norway.
• The current voting reversed the plan again as the ban was just supported by left-leaning parties.

 

Why it’s important:

• This sovereign decision must be seen in the context of the ill-informed, but heated debate about Bitcoin’s relation to energy. While the debate is still dominated by very critical voices, the empirical evidence is mounting that the numbers are rather modest compared to other industries. In addition, new data furthers our understanding of the potential ways to actively help mitigate GHG emissions.
• Norway, in stark contrast to most other sovereign nations has its own national savings plan. After 3 decades, The Government Pension Fund Global (aka “oil fund”) has a size of $1T. With such a long-term perspective on wealth preservation, one can assume that the decisions are weighed against the country’s long-term interests. Given that Bitcoin mining fits into that strategy, it is a signal for other nations to check their facts and do their own research.
• In addition, the stark contrast of how countries regulate Bitcoin (mining) around the world remains impressive. Norway’s decision is a complete opposite to China’s decision in 2021 to ban all Bitcoin mining on its territory (which, as recent data shows, was not entirely successful).

 

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In other news

• Restaurant software giant Lavu enables crypto payments in 65+ countries (via finbold)
• Japan's second-largest bank to launch a crypto custody platform for institutional clients (via Bitcoin Magazine)
• Tag Heuer now accepts crypto payments (via Twitter)
• FTX CEO says he could spend up to $1b in 2024 election (via CNBC)
• Crypto Exchanges Including Binance, FTX To Support 'Terra 2.0' Relaunch (via Decrypt)
• Stepn to Bar Gameplay in China, Sending 'Move-to-Earn' Token GMT Spiraling (via CoinDesk)
• Amid crypto market turmoil, Andreessen Horowitz announces $4.5 billion web3 fund (via TechCrunch)