Big things are usually found in small places, and cryptocurrency is no exception. Despite giving rise to businesses in major financial hubs like New York and the Silicon Valley, new data suggests that it’s generally smaller towns and cities that house the most cryptocurrency stashes.
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A new survey from Status Money places Jacksonville, Florida, as the city with the most cryptocurrency investments per person, with the average Jacksonville citizen holding $31,000 USD in digital currency.
“We looked at transactions in and out of major crypto exchanges, and we can see when someone moves money from [a] checking account to Coinbase and other major crypto exchanges,” explained Status Money founder Majd Maksad. “For every person who had a transfer into a cryptocurrency exchange, Jacksonville was the highest.”
The top five towns were as follows:
1) Jacksonville, FL, with the average person holding $31,468;
2) Memphis, TN, with the average person holding $15,748 (approximately half of what citizens carry in Jacksonville);
3) Albuquerque, NM, with the average person holding $12,479;
4) Charleston, SC, with the average person holding $9,442;
5) Alpharetta, GA, with the average person holding $8,382.
Big Cities Score Low
Ironically, major tech and financial regions, like Manhattan and San Francisco, ultimately made the top ten, but scored very low on the list, with Manhattan residents holding an average of just over $7,000 in cryptocurrency. Santa Clara, a suburb of the San Francisco Bay area, had its residents carrying an average of $8,000 in digital assets.
Population has a lot to do with the present survey rankings, which is likely why such large areas failed to score higher. The more people there are to monitor, the harder it is to be first, though interestingly, Manhattan did score the number one spot among cities based on crypto volume.
Fear and Gloom in the Midst?
The survey results suggest hiking acceptance for cryptocurrency, though not everyone is convinced this is good. Maksad is one speaking out against digital currency assets, or rather the way people view them. He thinks the volatility and risks make cryptocurrencies somewhat dangerous, particularly to middle or low-income individuals, who seem to view cryptocurrency as a “get rich quick” kind of scheme.
“In December, people that made $50,000 or less in income per year moved 14 percent of their investment portfolios into crypto,” he explained. “That’s scary.”
Maksad went on to say that nearly one-third of the transaction records examined came from those earning less than $100,000 per year.
“I don’t think it is a well-thought-out bet,” he stated. “If you want to point to an underlying driver, it’s euphoria and greed. I don’t know what this is, but it seems to be the future… In an economy where trillions of transactions are occurring, currency may be the worst application of blockchain technology.”
Is it wise to play with cryptocurrency like this? Post your comments below.
Images via CFIG.ca, Pixabay