Q3

2023

OCTOBERThe State of Crypto:  Age, Access, and AGENCYTo update the
dream, they’re
updating thesystem

Go to school, get a job, buy a home, work your way up. For older generations,the unspoken deal was that if you followed the rules and showed drive andresilience, you had a real shot at economic opportunity and prosperity—the
American Dream.

Younger generations (18-40) view our current financial system as:
SpeedyImpartial
Innovative
Slow
Confusing
Exclusionary
Outdated

Source: Coinbase and Bovitz Inc.,
Generational Research, 2023

Expensive

5%
9%
11%
16%
19%
21%
27%
30%

Younger generations report that deal is no longer available: just 9% of Gen Z(ages 18-25) and 19% of Millennials (26-40) say the American Dream isachievable for everyone. On top of school and other debts, high housing
costs, and high inflation, an outdated financial system stands in their way,built on legacy institutions that aren’t serving their needs.

While generational disillusionment with the status quo has been widely
hyped via trends like “quiet quitting” and “lazy girl summer,” the core insightof Coinbase’s Q3 State of Crypto Report is that these narratives miss thepoint. Yes, younger people are checking out of the status quo—but they’re
actively engaged in building something new. Instead of following
conventional paths, they’re adopting new, flexible models of work, ownership,
and finance that don’t rely on legacy middlemen. These new models movewith them across the country, around the world, and as fast as the internet.
Young people today aren’t waiting for anyone. They will be the majority ofAmerica's voters and consumers by 2028, so it's on politicians and institutions
to catch up.

Almost no one is happy with the nation’s financial system—only 9% of
Americans are satisfied with it, and only 22% think it’s better than any othercountry’s. But young people are especially disillusioned by it.

The State of Crypto: Age, Access, and Agency

1

Just 7% say the financial system works very well for people like them.
More than half (52%) say they never or only sometimes use it
Fewer than one in five (17%) think the US system is better than others,
versus one in four people over age 40 (26%).1

1 Gen X = ages 41-59 
Boomers = age 60+

New research for Coinbase examines how young people experience and accessthe financial system (or not), where they think it falls short, and how they’retaking their future into their own hands and creating economic opportunity forthemselves. As younger generations become more pressured financially andmore disillusioned by the system, they’re also becoming more empowered bytechnology and emboldened by their growing influence as consumers andvoters to do something about it.

Age. More than 100 million Millennials and Gen Z adults grew up with theinternet, mobile phones and apps. When Millennials had their early careerprospects undercut by the 2008 financial crisis and Great Recession, they
popularized marketplace apps to convert their free time and unused
belongings into extra cash and drove a global phenomenon, the sharing
economy. Gen Z had to adapt when the COVID-19 pandemic kept them locked
down and living online, including socializing by gaming, learning to assign value
to digital assets. 

They want legacy institutions to fit within their lives, not the other way around,and to be able to manage and move their money through the financial systemat the pace of the internet and around the world. Only 5% of Gen Z andMillennials call the system “speedy;” only 11% call it “innovative”—they’remuch more likely to call it “political” and “expensive.” Of all generations,
Millennials are most likely to call the system “outdated” (29%);” Gen Z are most
likely to call it “confusing” (28%) as well as “exclusionary” (29%).

Agency. As the current system lets them down, young people are taking agency
and building new paths to prosperity
They’re more likely than older generations to want multiple sources ofincome (45%) and to have side gigs (32%).
Millennials are the generation most likely to want to work as hard as
possible to achieve their goals (48%)
Three fourths (77%) of Gen Z want to choose their own paths rather thanpursue the traditional path of college, homeownership, etc.

The State of Crypto: Age, Access, and Agency

2

They’re seeking out new economic opportunities that don’t depend on an
outdated financial system propped up by sclerotic institutions, laying afoundation not just for an updated system but for an updated American
Dream. One enabled by a technology, like cryptocurrency, as a tool to update
the system
Nearly two in five (38%) say crypto and blockchain can increase economic
opportunities for them in ways traditional finance can’t, versus 26% of
older people.
More than one in three (31%) own crypto, versus 12% of older people.
Young people are more interested in crypto than older people because it’sa global currency that can be accessed and sent across the world (16%versus 10%)
About one in four (38%) see crypto as the future of finance, versus lessthan three in 10 (28%) older people.

And they’re taking action on crypto beyond just owning it—studying it inschool, seeing it as an important source of jobs, and getting ready to
advocate and vote in 2024 for candidates who are building for the future andagainst those who support a broken status quo. Together, Millennials and Gen
Z adults make up about 40% of the voting-age population today and will be amajority of voting-age Americans by 2028.
Half (51%) say they’re likely to throw their weight behind crypto-friendly
candidates in 2024.
About two in five (39%) say politicians and policymakers should support
technologies like cryptocurrency and blockchain to help future
generations, versus 28% of older Americans.

These generations will make up a greater share of the country’s consumers
and electorate tomorrow than they do today, and their push to use crypto as atool to update the financial system and create more opportunity andprosperity for themselves will drive adoption of crypto in politics and society.

This is Coinbase’s second State of Crypto Report, following the Q2 2023
report on corporate adoption, which found that more than half of Fortune 100
companies are developing blockchain initiatives to stay competitive. This
series aims to educate the public about the role crypto can play in updating
the financial system for the benefit of consumers and corporations alike. At atime of broad agreement that the current system is neither an example forthe world nor innovative or fair, the findings lay out how crypto can help
support greater equality of opportunity and a new, more inclusive, selfdirected and technologically up-to-date American Dream.

The State of Crypto: Age, Access, and Agency

3

Millennials (26-40)
Perceptions of crypto and reasons to use it
rypto/ loc c ain perceptions

C

9%
Just 9% of Millennials
say the current financial
system is working forpeople like them.

B

k

h

Millennial

Total
Politicians and policymakers
should support crypto/blockchain

33%

44%

Crypto/blockchain is the
future of finance

32%

44%

Crypto/Blockchain can increase
economic opportunities in ays
traditional finance can’t

31%

42%

Crypto/Blockchain has apositive impact on society

27%

38%

w

Top reasons people started/would start using crypto
Total

Millennial

To Invest and make money

To diversify my investments

ource oinbase and Morning
onsult, Multicultural andnderserved Audiences
esearch,

S

36%

22%

44%

28%

: C

C

U
R

To get iN before it’s too late

2023

15%

22%

ource oinbase and ovitz nc.,
enerational esearch,

S

G

: C

B

R

I

2023

A pivotal generation, Millennials grew up embracing the American Dream butwere derailed in trying to achieve it by a global financial crisis caused by
failures of legacy institutions on which the financial system was built. They
also were the first generation to really benefit financially from thedemocratizing technology of mobile phones. As a result, they may be the lastgeneration to try to pursue the traditional, legacy-dependent iteration of theAmerican Dream.

The State of Crypto: Age, Access, and Agency

4Millennials are the transitional generation from an old to a new ideal  of successIn their interest in pursuing the traditional path—college, marriage, kids,
house, etc. (32%) versus living their life by their own terms (68%)—their
response mirrors that of older Gen X (34%/66%) versus younger Gen Z(23%/77%)
They are the generation most likely to want to work as hard as possible toachieve their goals (48%)
They are the most likely to be looking for opportunities to have multiple
income streams (46%)
They are most likely to have started or to start using crypto to invest andmake money (44%)
They are most likely to wish that homeownership was something they’ddone sooner (28%).

Many Millennials, burned by the financial crisis and raising their Gen Alphakids (ages 0-9) amidst historic inflation, are teaching their kids about
finance early
A solid majority (57%) already have sought advice on how to set up theirchildren for success
Nearly 60% have talked with their kids, no matter how old, about spending
and considering how much things costMore than half have talked with their kids, no matter how old, about
different types of money.

Top reasons why they invest in crypto are actual features: it's a means toinvest and build wealth, diversify a portfolio, access and send money acrossthe world, and do so independently of legacy institutions. Beyond that, of
all generations, Millennials are the most bullish on the potential of crypto
They are most likely to say that crypto can increase economic opportunity
in ways that traditional finance can’t (42%), and that it is mostly beneficial
to society (36%)
They are most open to crypto as a way to make money (44%) and as the
future of finance (44%)
They are the generation most likely to believe that blockchain technology
will create jobs of the future (44%) and be interested in working in theindustry (33%)
They are most likely to believe politicians and policymakers should
support crypto/blockchain (44%).

The State of Crypto: Age, Access, and Agency

5Gen Z (18-25)
Financial System Perceptions
MillenNial

Gen Z

6%
Source: Coinbase and Bovitz Inc.,
Generational Research, 2023
Source: Coinbase and Morning
Consult, Multicultural andUnderserved Audiences
Research, 2023

Just 6% of Gen Z says
the current financial
system is working forpeople like them

Gen X

Boomer

The financial system isdesigned to benefit
corporations over consumers

57%

44%

42%

50%

The financial system is run bypeople who are out of touchwith most Americans

57%

45%

38%

43%

The financial system works betterfor older generations than
younger generations

America’s financial system
is better than financial
systems in other countries

39%

12%

25%

15%

19%

25%

11%

27%

If Millennials are the last generation to idealize an American Dream based on
legacy institutions, Gen Z is remaking the concept for the future, expecting
such institutions to fit within their lives (or else possibly not at all; they’relearning about finance in ways that cut out legacy media). Of all generations,they feel the most negatively about the financial system.

Gen Z is updating the traditional American Dream in real time
They’re least likely to see the American Dream as achievable for everyone(9%, versus 19% for Millennials)
They are far less inclined to see homeownership as a worthwhile
investment (49%, 15 points lower than Millennials and nearly 30 points
less than Boomers), and the most likely generation to say homeownershipis something they never thought they’d be able to achieve (20%)
After Millennials, they are most likely to have (29%) and be seeking (42%)
multiple sources of income
They are the generation most interested in living their lives by their own
terms (77% versus 68% of Millennials, 66% of Gen X and 56% of Boomers)
They’re learning about finance from social media, YouTube, online forums—and their parents.

Gen Z is the generation most likely to think the current financial system is
not only unfair but inadequate
They are the least satisfied with the system (5%, versus 9% of Americans
overall).

The State of Crypto: Age, Access, and Agency

6

As the most diverse generation in history, they’re most likely to describe
the system as “discriminatory” and “exclusionary.”
They’re also the most likely to call it “confusing”—and least likely to call it“reliable.” Hardly any (3%) call it “speedy.”
They are the generation most interested in crypto because it’s a global
currency that can be accessed and sent across the world.

The State of Crypto: Age, Access, and Agency

7

University students
and curriculum
adoption

Utility of Future Use Cases (Showing % Selected)
Data Privacy
and Security

32%

Decentralized
Finance (DeFI)

24%

Healthcare DataManagement

23%

Digital Identity
Verification23%

Supply Chain
Management

21%

Decentralized
Internet (Web 3.0)

21%Intellectual
Property Right
Non-Fungible
Tokens (NFTS)

19%

Education andCredentials

19%

Decentralized
Marketplace

18%

29%
29%

20%
26%
26%
29%

22%

18%
18%

Voting andGovernance16%

Tokenizationof Assets

16%

GamingGovernance

27%

23%

20%

Cross-Border
Payments

Source: Coinbase and Morning
Consult, College/University
Student Research, 2023

28%

22%

Gaming and
Virtual Assets

37%

15%

21%
21%
20%

American graduate students in particular have a strong sense that crypto andblockchain matter for both the country’s future and their own, and see a wide
variety of potential use cases beyond those commonly discussed. American
undergraduates aren’t far behind them in these sentiments, and leading
universities are adding courses and experts to meet this growing demand.

Students have a strong sense that crypto technology is important
Both grad students and undergrads are as aware of crypto (more than ninein 10) as they are of AI (94%), and their awareness is consistent acrossvarious concentrations from computer science and business, to fine arts
Significant percentages see crypto/blockchain as important for the future(grad students 58%, undergrads 45%), and as the future of finance(54%/45%)
A majority of grad students (58%) and business majors (52%), along with
41% of undergrads, say they are more likely to vote for candidates who are
pro-crypto.
The State of Crypto: Age, Access, and Agency

8

There’s keen interest in learning about crypto technologies for career
purposes
Nearly three in five grad students (58%) and nearly half of undergrads(47%) believe that learning about this technology will make them morecompetitive in the job market
One in five grad students already have taken at least one class about
crypto/blockchain
About one in 10 undergrads also have taken a course in crypto. Among
those who have, for about three in 10, the course was required for theirmajor; seven in 10 simply elected to study it
Three in 10 undergrads and 45% of grad students are interested in working
in crypto.

Universities are stepping up to meet the need
Of the country’s top 50 universities, 46 offer a collective 197 courses  in crypto.
Six of the top 50 offer at least 10 courses: Stanford and Georgetown
University (18 each), Yale and Northeastern (13 each), the University ofPennsylvania (12), and Notre Dame (11)Historical Black Colleges and Universities (HBCUs) are also ensuring Black
students are active in blockchain through initiatives like the Blockchain
Association's Diversity, Equity & Inclusion Internship Program.
Among grad students who have taken instruction in crypto, 37% say theirinstructors were recognized experts in the field.

The State of Crypto: Age, Access, and Agency

9

Spotlight on theunderbanked

Percentages of key demographics who identify as underbanked:

11%
Just 11% of underbanked
Americans think thecurrent financial system
works for people like them

Source: Coinbase and Morning
Consult, Multicultural andUnderserved Audiences
Research, 2023

*Notably, more than half of Millennial (52%),  Gen Z (54%) and Black Americans (61%)  
identify as less than fully banked (either  underbanked or unbanked).

24%

22%

17%

Black*

Millennials*

Gen Z*

17%

14%

8%

Hispanic

White

Asian

The underbanked are a key cross-section of Americans who are mostdissatisfied with the financial system, being both more diverse and younger,
participating enough in the system to know what’s not working, and feelingfinancially strapped yet still hopeful about their future. In our research, 15%of respondents identified as underbanked, in line with official estimates of
the national underbanked population. The underbanked are more likely to
own crypto than the general population: around one in three do, compared toaround one in five Americans overall. 

The underbanked have strong feelings about the current financial system
Nine in 10 think the system needs change or a complete overhaul—10
points higher than the fully banked (80%) and 28 points higher than theunbanked (62%).

Of all banking types, they are the most uncertain about their finances andtheir ability to access traditional financing
They are the most likely to cite financial concerns as their top source ofdaily stress (61%).

The State of Crypto: Age, Access, and Agency

10

They are most likely to worry about having enough money (49%), to havethe hardest time meeting their monthly living expenses (42%), and todepend on others for financial help (21%)
Significant percentages would find it tough to get a home loan (50%), carloan (41%), or new credit card (34%).

Yet they also are the banking type who are most optimistic about theirfinancial future.
Nearly half (49%) believe they will be better off a year from now
They are the most financially independent (86%).

Of all banking types, they are most likely to see crypto as an important tool
for building wealthMore than half (52%) agree that crypto/blockchain can increase economic
opportunities for them in a way that traditional finance can't
About half (49%) say that crypto/blockchain can offer more access to
wealth for underserved populations
Half (50%) see crypto/blockchain as beneficial to society (versus 37% of
the unbanked and 20% of the fully banked)
More than half (54%) see crypto and blockchain technology as important
tools for the future of finance.

The State of Crypto: Age, Access, and Agency

11

Standing with crypto
Among American crypto owners, likelihood of voting for a  
pro-crypto candidate in 2024:
78%

Millennial
73%

Unbanked

71%

Gen X
Gen Z

69%

Underbanked

Source: Coinbase and Morning
Consult, Multicultural andUnderserved Audiences
Research, 2023

62%

BoomerFully Banked

51%
30%

Millennials and Gen Z adults already represent 40% of the voting-age
population, on their way to a majority by 2028 and already turning out in highnumbers. They are more likely than the general population to value theeconomic opportunities and social benefits of crypto and are willing tosupport crypto-friendly candidates and advocate for the clear regulations
needed to update the system. They will drive adoption of crypto andblockchain technology in politics and eventually in policy.

Among Coinbase’s own active users, these key demographics show
willingness to advocate for pro-crypto policies. For example, Gen Z andMillennial users are likely to research and act on a candidate’s stance on
crypto, including by
Seeking out information on a candidate’s stance on crypto: 20% of Gen Z
and 22% of Millennials, versus 16% of Gen X and 19% of Boomers.
Joining a pro-crypto coalition or alliance: 42% of Gen Z and 39% ofMillennials, versus 32% of Gen X and 37% of Boomers
Writing to their members of Congress asking them to support pro-crypto
legislation: 42% of Gen Z and 38% of Millennials, versus 32% of Gen X and
31% of Boomers.

Sentiment that the financial system needs major changes or an overhaultranscends ideology, suggesting there’s little downside for candidates to beopen to a fairly regulated crypto industry.
Strong majorities of self-identified conservatives (87%), those who
identify as “middle of the road” (85%), and self-identified liberals (89%) all
agree that the financial system needs an update.
The State of Crypto: Age, Access, and Agency

12

Americans across the political spectrum believe the government is mainly
responsible for fixing the system: 65% say the federal government, 42%
say state governments, and 40% say individual elected officials
Crypto ownership itself is bipartisan: 22% of Democrats, 22% of
independents and 18% of Republicans have identified as crypto owners.

Today, 52 million Americans own cryptocurrency—one in five adults. As of
October 2023, less than two months since launch, the Stand with Crypto
Alliance has mobilized more than 100,000 advocates—well on its way tomobilizing its goal of 1 million advocates in order to make progress in the US
toward achieving the kind of fair rules for crypto that other countries are on
their way toward enacting. Fair rules that allow the American crypto industry
and crypto owners to operate with certainty are key to an updated financial
system and ultimately, for younger generations, an updated American Dream.

At Coinbase, we’re working hard to help update the financial system bybuilding trusted products that expand the utility and adoption of crypto
because we believe crypto and blockchain technology have the ability toincrease economic freedom and opportunity around the world. Coinbase
chose to become a public company in the US because we believe the US
would best be served by embracing this fundamental innovation, but we’realso focused on international markets, many of which are moving forwardwith strategies to become “crypto hubs.” We would like to see the US take asimilar approach, but a regulation by enforcement approach in the US isinstead leading to a disappointing trend for crypto development in the US.

The State of Crypto: Age, Access, and Agency

13

Methodology 
Generational research, with survey partner Bovitz, Inc.
Survey of 1,000 Gen Z (age 18+), Millennial, Gen X and Boomer Americans from June 19-23, 2023
Interviews of 30 American adults aged 18-59 from June 6-16, 2023.

College/university student research, with survey partner Morning Consult
Survey of 2,065 undergraduate and graduate students from August 11-23, 2023
Interviews of industry experts from August 21-September 6, 2023
Analysis of college course offerings by the top 50 US colleges and universities, as ranked by US
News & World Report, for Fall 2022 through Fall 2023.

Multicultural and underserved audience research, with survey partner Morning Consult
Survey of 5,090 American adults including 800 crypto investors, 4,290 non-crypto investors, andoversamples of women, Black Americans, Asian Americans, and Hispanic Americans from
August 24-31, 2023
Definitions“Unbanked” = Does not have a savings or checking account with a bank/credit union“Underbanked” = Has a savings or checking account with a bank or credit union and in P12M
has purchased a money order from somewhere other than a bank/credit union, or paid bills
though a service such as Western Union or MoneyGram, or cashed a check through a provider
other than a bank/credit union“Fully banked” = Has a savings or checking account with a bank or credit union and in P12M
has not purchased a money order from somewhere other than a bank/credit union or paidbills though a service such as Western Union or MoneyGram or cashed a check through aprovider other than a bank/credit union.

Cryptocurrency perceptions research, with survey partner Morning Consult
Survey of 2,202 American adults in February 2023.

A Brand’s Guide to Generation Alpha, report by Morning Consult
Survey of 2,001 parents with children under the age of 9, from December 10-20, 2022
Survey of 1,000 parents with children under the age of 18, from December 10-19, 2022
Survey of 1,000 parents with children under the age of 9, from December 21-24, 2022.

Disclaimer 
Information is provided for general educational purposes only and is not intended to constitutelegal advice, investment advice or other advice on financial products. This report contains links tothird-party websites or other content for information purposes only. Third-party websites are notunder the control of Coinbase, and Coinbase is not responsible for their contents. The inclusion of
any link does not imply endorsement, approval or recommendation by Coinbase of the site.

The State of Crypto: Age, Access, and Agency

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