When considering who in America is most passionate about cryptocurrency, you might think of Millennials, tech enthusiasts, and primarily men.

However, Republicans may not be the first group that comes to mind.

Recent findings from the University of Pennsylvania indicate that Republicans are actually more inclined than Democrats to invest in cryptocurrency, with varying levels of enthusiasm depending on the region. For instance, Texans show a greater preference for bitcoin compared to Oregonians.

This trend might shed light on why President-elect Donald Trump has prominently endorsed cryptocurrency.

“It seems Trump has tapped into this, realizing that his supporters are significantly in favor of crypto,” remarked David Reibstein, a marketing professor at Penn’s Wharton School and contributor to the research.

Reibstein, alongside colleagues, invested two years in gathering data through surveys involving over 22,000 Americans.

The highlights from their research include:

◾ Republicans are more crypto-inclined than Democrats, with ownership rates of 41% for Republicans compared to 32% for Democrats.

◾ Conservatives display greater confidence in the viability of crypto than liberals.

◾ The popularity of crypto is highest in Texas and the Southeast, while states like Connecticut and New Hampshire in the Northeast, along with the Pacific Northwest, show lower enthusiasm.

Who are the crypto enthusiasts? Primarily Millennials and men

The Wharton team crafted a thorough demographic and political profile of the average American who invests in crypto.

Some insights mirror widely held beliefs about the crypto landscape. Notably, men are over twice as likely to invest in crypto compared to women, as shown by the survey data.

Millennials are the strongest advocates for cryptocurrency. The study indicates that individuals aged 25 to 44 are the most likely to invest, followed by those aged 45 to 64, which includes younger members of Generation X and the late baby boomers.

Conversely, seniors and young adults aged 18 to 24 are the least likely to hold crypto, albeit for different factors. Older individuals often harbor skepticism toward crypto, while younger adults may simply lack the financial resources to invest.

The attraction of cryptocurrency for Republicans largely stems from its decentralized nature.

Cryptocurrency serves as digital currency that operates independently of government or bank intervention. It functions on decentralized networks and employs blockchain technology to record transactions and ownership.

“Decentralization and political alignment are hard to disentangle,” Reibstein noted, emphasizing that Republicans often prefer a decentralized governmental structure.

The crypto movement is seen as defiant

The University of Pennsylvania research suggests that liberals and Democrats represent the status quo, particularly regarding the banking sector and the Federal Reserve, within the context of cryptocurrency. This may appear contradictory since progressives have historically taken pride in challenging authority.

In the realm of crypto, the countercultural sentiment is emerging from the right side of the political spectrum.

“The ethos here is for individuals to self-organize and engage in transactions without the need for banks,” explained Jim Harper, a crypto specialist and senior nonresident fellow at the conservative American Enterprise Institute.

“This is essentially about supplanting the banking sector with software. ”

This topic revolves around anti-establishment sentiments.

During the Vietnam War, the hippie movement marked itself as both anti-establishment and left-leaning. Harper draws a parallel to today’s conservative crypto enthusiasts, identifying them as “Trumpian-style hippies.”

Both Harper and Reibstein think that Trump began to endorse cryptocurrency as a way to align himself with his supporters. During his first presidential term, Trump was critical of crypto, stating it was “based on thin air.”

However, in his second term, Trump has pledged to transform America into the “crypto capital of the planet” and intends to build a national reserve of bitcoin.

“Trump grasped the situation and reached out to the bitcoin community in the last election cycle,” Harper shared. “They were eager and ready for him.”

Trump’s endorsement has increased cryptocurrency’s appeal among Republicans. Research from Penn indicates that the percentage of Republicans holding crypto surged from around 36% in the summer of 2024 to 43% in December, following Trump’s election win.

Would you consider accepting your salary in crypto?

A question that remains for the Penn researchers is how most Americans categorize crypto – as a currency or an investment.

“There are roughly 38,000 ATMs that accept cryptocurrency,” Reibstein mentioned, recalling that he saw one at a Costco recently.

With more crypto ATMs emerging, Reibstein believes that “people will gradually start to see it more as a currency than they currently do.”

However, American confidence in cryptocurrency remains shaky.

In a survey, 54% of respondents indicated they would be comfortable making online purchases with crypto, but only 7% expressed willingness to receive their paychecks in it.

Harper, who has previously worked with the Bitcoin Foundation, recounts how he received some of his salary in bitcoin. “My wife insisted that I convert it into dollars immediately,” he recalled.