The crypto world is still expanding – and quite rapidly. Investors and traders from all over the world are taking advantage of the growing popularity of cryptocurrencies and even celebrities are getting interested in crypto.
That being said, there seems to be a huge problem with the world of crypto – namely, the gender problem. Recent research shows that men seem to be investing in cryptocurrencies way more than women. This goes directly against the main argument for cryptocurrency. Yet, the situation may be more complicated than it seems at first glance.
What Statistics Say
According to Statista, 78% of men in the US were aware of Bitcoin in 2019 compared to 71% of women. The situation changes drastically when you look at other cryptocurrencies: 26% of men and 21% of women knew about Bitcoin cash, 24% of men and 9% of women knew about Ethereum, 18% of men and 8% of women knew about Litecoin, and so on. Moreover, 17% of men and 20% of women hadn’t heard about any cryptocurrencies at the time.
Gracey Jefferson, an expert from the writing services reviews site Best Writers Online, puts it this way, “As you can see, more men than women consistently knew about different cryptocurrencies. At the same time, there were more women than men who hadn’t heard about cryptocurrencies. That was two years ago, but I doubt that there has been much change since then.”
Interestingly, such a disparity can be seen not only in the US. Also according to Statista, a 2021 survey in South Korea found that 43% of male respondents and 36% of female respondents were investing in cryptocurrencies. The most popular cryptocurrencies to invest in were Bitcoin along with XRP (Ripple), Cardano/ADA, and Dogecoin.
Such findings demonstrate that the issue might be not just the US cryptocurrency market but rather the global world of crypto. It’s hard to judge just by looking at two countries. Yet, there is a fair chance that such a gender difference could be present in other countries as well.
According to CNBC and Acorn’s Invest in You: Next Gen Investor survey, 16% of men in the US are investing in cryptocurrency compared to only 7% of women. These statistics mirror the ones for more traditional types of investing, including ownership of exchange-traded funds (14% of men and 7% of women), individual stocks (40% of men and 24% of women), mutual funds (30% of men and 20% of women), real estate (36% of men and 30% of women), and bonds (14% of men and 11% of women).
There is a historical element to the disparity these statistics illustrate. Considering that women have previously been less involved in investing, it is somewhat unsurprising that crypto investing has the same exact problem. No matter how new, progressive, or revolutionizing it may seem, it still struggles with the same issues.
When it comes to cryptocurrency types specifically, the situation is similar. Only 15% of Bitcoin traders are women. Only 12% of Ethereum investors are women. These numbers can easily appear depressing when you consider all the other statistics. But the background for such statistics is probably a combination of different factors that caused it.
The Central Issue
Perhaps the biggest issue with the reality painted by these statistics is that the essence of cryptocurrencies is supposedly very different. Bitcoin and all the other cryptocurrencies are meant to democratize the financial sphere by bringing more diversity to it. The main advocates for crypto claim that cryptocurrencies can bring in both men and women from different backgrounds.
Harris Mellor, an expert from the custom writing reviews site Writing Judge, explains it this way, “That’s the central issue here, really. Statistics show that there are fewer female investors in crypto, an issue that has haunted traditional investment types for so long now. Crypto investing was seen as a solution, and yet, the reality seems to be the complete opposite. It’s just the same problem in a slightly different setting.”
There are different explanations for this issue. Some experts suggest that the problem lies in the volatility of cryptocurrencies and the uncertainty associated with crypto investing. Supposedly, women tend to be more conservative with their finances which means they are less likely to invest in cryptocurrencies – an endeavor that looks quite risky.
There’s also the aspect of diversity and participation. The reason why there are fewer women investing in crypto might have its cause in the mere fact that there is not much diversity in crypto already. And that’s just not an environment many women might be interested in joining. The more women do join, the more will follow.
In addition to that, not many people are properly educated on what cryptocurrency is and how it can be useful to the everyday investor. If more educational opportunities are created to spread the word about cryptocurrencies to female investors, then this could lead to more women trying their hand at crypto investing.
One more explanation of these statistics is that they are simply inaccurate. Because of the private nature of crypto investing and because there are still not that many people investing in crypto, it’s hard to consider these statistics accurate or precise. As more time passes and more accurate information can be collected about crypto investing, better statistics can be calculated and better conclusions can be made.
The Trends Are Changing
Just like with e-commerce trends or fashion trends, there are cryptocurrency trends that could signal a major change in the world of crypto investing. Remember that everything related to crypto is still very new, unstable, and uncertain. Everything is constantly changing. And maybe that could be the reason for the gender gap in crypto investing, as some experts suggest.
The good news is that the changing trends could also be the way out of this problem. In fact, some research already suggests that there are positive changes happening. According to Gemini’s 2021 State of UK Crypto report, 41.6% of previous or current investors in crypto are women – and this number is growing.
Moreover, CNBC has reported other findings that could suggest that crypto investing really does democratize finances. For instance, there is a higher participation rate among younger adults than older adults. In traditional investing, this wouldn’t be possible because of the capital that older investors own compared to what younger investors usually have.
At the same time, crypto investing has similar rates among different races: 11% of whites, 11% of Blacks, 10% of Hispanics, 14% of Asians, and 13% of people of another race own cryptocurrency. While there is a gender gap, the race gap is virtually non-existent. Perhaps in due time, the gender gap will disappear as well.
To sum up, crypto investing still has a lot of room for growth and some time will have to pass before definitive conclusions can be made. However, even now there are very polarized views on the reality of the crypto world.
Some advocates insist that crypto investing is the miracle solution to the gender gap while other experts are more skeptical. Perhaps the best solution is to be realistic and not to jump to conclusions. The world of crypto is still developing and more women seem to be interested in it with every new day.
Wanda Lafond is a professional content writer, copywriter, content strategist, and communications consultant. She started young with her writing career from being a high school writer to a university editor, and now she is a writer in professional writing platforms Best Writers Online and Writing Judge— her years of expertise have honed her skills to create compelling and results-driven content every single time.
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