Bitcoin adoption rates by state: Where cryptocurrency is most popular
Over 2.78 million Individuals reported actively collaborating in cryptocurrencies in keeping with the most recent IRS information, with estimates asserting Bitcoin prevalence for roughly 75% of all users. The ascent in Bitcoin’s worth through the years — amongst different currencies — has undoubtedly made fortunes for a lot of buyers. However the IRS didn’t begin monitoring normal cryptocurrency involvement in earnest till 2020, when it started asking tax-filers about their participation, no matter a taxable sale.
Thus, SmartAsset used the most recent version of this IRS information to find out which states have adopted Bitcoin and different cryptocurrencies on the highest rates, enabling insights for financial, technological, and even political preferences in some areas.
Key Findings
- Washington has the very best charge of cryptocurrency use. As of 2022, 2.43% of tax returns filed in Washington have been concerned with cryptocurrency throughout the 12 months. Washington has led on this metric for 3 straight years. Total, crypto adoption traits are strongest in western states, with Utah (2.36%), California (2.25%), Colorado (2.17%) and Oregon (1.93%) all incomes spots among the many prime 10.
- About 3 times as many individuals participated in crypto in 2021 as in different years. Crypto adoption topped 5% in a handful of states in 2021, a 12 months by which Bitcoin’s worth doubled from roughly $32,000 to $64,000, reaching highs to not be seen once more till 2024. Adoption topped out at 6.22% in Washington that 12 months. Throughout all states, the typical adoption charge was 1.26% in 2020, 3.8% in 2021, and 1.6% in 2022.
- Cryptocurrency adoption has been the least popular within the South. Lower than 1% of households are concerned in cryptocurrencies in West Virginia (0.84%) and Mississippi (0.95%), with Kentucky (1.1%), Louisiana (1.15%), and Alabama (1.16%) rounding out the remainder of the lowest-participant states.
- Excessive earners are two to 5 instances extra more likely to take part in cryptocurrency. For households incomes $500,000 or extra yearly, the crypto adoption charge stands at 5.55%, reaching 5.64% for these incomes $1 million or extra per 12 months. In the meantime, the adoption charge for households incomes between $1 and $75,000 per 12 months averages round 1.27%. This jumps as much as 1.95% for households incomes $75,000 to $100,000. For these incomes between $100,000 and $200,000 yearly, the adoption charge is 2.62%, reaching 4.28% for these incomes between $200,000 to $500,000.
Where Bitcoin and Cryptocurrency Are Most Prevalent
States are ranked based mostly on the share of tax returns indicating they have been concerned with digital forex throughout the 2022 tax 12 months.
- Washington
- 2022: 2.43% (91,310 households)
- 2021: 6.22% (233,980 households)
- 2020: 2.1% (80,680 households)
- Utah
- 2022: 2.36% (35,760 households)
- 2021: 5.69% (84,570 households)
- 2020: 1.89% (28,230 households)
- California
- 2022: 2.25% (416,340 households)
- 2021: 5.19% (977,200 households)
- 2020: 1.78% (347,170 households)
- Colorado
- 2022: 2.17% (64,480 households)
- 2021: 5.29% (156,080 households)
- 2020: 1.83% (53,580 households)
- New Jersey
- 2022: 2.15% (99,890 households)
- 2021: 4.48% (205,020 households)
- 2020: 1.47% (69,280 households)
- Alaska
- 2022: 2.07% (7,210 households)
- 2021: 5.58% (19,530 households)
- 2020: 1.82% (6,550 households)
- Massachusetts
- 2022: 1.97% (70,380 households)
- 2021: 4.58% (162,530 households)
- 2020: 1.58% (57,700 households)
- Florida
- 2022: 1.97% (219,330 households)
- 2021: 4.31% (467,200 households)
- 2020: 1.43% (161,170 households)
- New York
- 2022: 1.94% (189,580 households)
- 2021: 4.2% (411,730 households)
- 2020: 1.44% (146,730 households)
- Oregon
- 2022: 1.93% (39,200 households)
- 2021: 4.93% (100,940 households)
- 2020: 1.65% (34,450 households)
- Virginia
- 2022: 1.87% (77,800 households)
- 2021: 4.65% (191,500 households)
- 2020: 1.58% (67,040 households)
- Connecticut
- 2022: 1.86% (33,970 households)
- 2021: 4.21% (76,730 households)
- 2020: 1.39% (25,900 households)
- Idaho
- 2022: 1.84% (16,010 households)
- 2021: 4.31% (37,350 households)
- 2020: 1.37% (11,930 households)
- Nevada
- 2022: 1.8% (28,010 households)
- 2021: 3.92% (61,240 households)
- 2020: 1.33% (21,330 households)
- Arizona
- 2022: 1.78% (59,960 households)
- 2021: 4.38% (147,680 households)
- 2020: 1.45% (49,960 households)
- Texas
- 2022: 1.78% (242,280 households)
- 2021: 4.38% (590,820 households)
- 2020: 1.46% (200,670 households)
- Illinois
- 2022: 1.74% (106,490 households)
- 2021: 3.96% (243,070 households)
- 2020: 1.34% (84,540 households)
- Maryland
- 2022: 1.71% (52,810 households)
- 2021: 4.18% (127,570 households)
- 2020: 1.45% (45,320 households)
- Minnesota
- 2022: 1.69% (48,670 households)
- 2021: 3.99% (113,720 households)
- 2020: 1.28% (36,880 households)
- North Dakota
- 2022: 1.68% (6,190 households)
- 2021: 4.23% (15,570 households)
- 2020: 1.33% (4,980 households)
- New Hampshire
- 2022: 1.66% (12,180 households)
- 2021: 3.53% (25,730 households)
- 2020: 1.08% (8,070 households)
- Michigan
- 2022: 1.64% (79,930 households)
- 2021: 3.7% (180,400 households)
- 2020: 1.26% (63,350 households)
- Wyoming
- 2022: 1.62% (4,560 households)
- 2021: 3.79% (10,700 households)
- 2020: 1.17% (3,350 households)
- South Dakota
- 2022: 1.6% (7,080 households)
- 2021: 3.5% (15,480 households)
- 2020: 1.13% (4,990 households)
- Rhode Island
- 2022: 1.59% (9,030 households)
- 2021: 3.8% (21,340 households)
- 2020: 1.24% (7,150 households)
- North Carolina
- 2022: 1.58% (77,880 households)
- 2021: 3.75% (183,630 households)
- 2020: 1.26% (64,220 households)
- Kansas
- 2022: 1.57% (21,370 households)
- 2021: 3.64% (49,790 households)
- 2020: 1.16% (16,340 households)
- Georgia
- 2022: 1.57% (77,340 households)
- 2021: 3.79% (186,800 households)
- 2020: 1.34% (68,010 households)
- Montana
- 2022: 1.54% (8,470 households)
- 2021: 3.7% (20,230 households)
- 2020: 1.24% (6,820 households)
- Delaware
- 2022: 1.45% (7,310 households)
- 2021: 3.45% (17,180 households)
- 2020: 1.16% (5,910 households)
- Pennsylvania
- 2022: 1.45% (91,670 households)
- 2021: 3.34% (214,460 households)
- 2020: 1.14% (74,630 households)
- Tennessee
- 2022: 1.44% (46,820 households)
- 2021: 3.56% (115,680 households)
- 2020: 1.16% (38,950 households)
- Nebraska
- 2022: 1.43% (13,460 households)
- 2021: 3.38% (31,680 households)
- 2020: 1.06% (10,010 households)
- Ohio
- 2022: 1.43% (81,420 households)
- 2021: 3.43% (197,860 households)
- 2020: 1.11% (65,330 households)
- Missouri
- 2022: 1.43% (41,120 households)
- 2021: 3.39% (97,840 households)
- 2020: 1.13% (33,910 households)
- Wisconsin
- 2022: 1.39% (40,840 households)
- 2021: 3.36% (98,660 households)
- 2020: 1.08% (32,450 households)
- Vermont
- 2022: 1.34% (4,510 households)
- 2021: 3.19% (10,740 households)
- 2020: 1.12% (3,870 households)
- Maine
- 2022: 1.33% (9,480 households)
- 2021: 3.21% (22,990 households)
- 2020: 1.03% (7,390 households)
- South Carolina
- 2022: 1.33% (32,880 households)
- 2021: 3.24% (79,360 households)
- 2020: 1.11% (27,980 households)
- Oklahoma
- 2022: 1.32% (22,590 households)
- 2021: 3.25% (55,990 households)
- 2020: 1.04% (18,480 households)
- Hawai’i
- 2022: 1.32% (9,090 households)
- 2021: 3.03% (20,990 households)
- 2020: 1% (7,060 households)
- Indiana
- 2022: 1.31% (42,620 households)
- 2021: 3.22% (104,910 households)
- 2020: 1.03% (34,510 households)
- Iowa
- 2022: 1.25% (18,620 households)
- 2021: 2.87% (42,790 households)
- 2020: 0.95% (14,710 households)
- Arkansas
- 2022: 1.22% (15,800 households)
- 2021: 2.87% (37,570 households)
- 2020: 1.02% (13,850 households)
- New Mexico
- 2022: 1.2% (11,890 households)
- 2021: 3.04% (29,840 households)
- 2020: 1.05% (10,430 households)
- Alabama
- 2022: 1.16% (25,010 households)
- 2021: 2.74% (59,360 households)
- 2020: 0.94% (21,060 households)
- Louisiana
- 2022: 1.15% (22,600 households)
- 2021: 2.73% (55,020 households)
- 2020: 0.96% (20,070 households)
- Kentucky
- 2022: 1.1% (21,760 households)
- 2021: 2.74% (54,740 households)
- 2020: 0.91% (18,800 households)
- Mississippi
- 2022: 0.95% (11,790 households)
- 2021: 2.08% (26,380 households)
- 2020: 0.76% (10,040 households)
- West Virginia
- 2022: 0.84% (6,530 households)
- 2021: 1.79% (14,120 households)
- 2020: 0.57% (4,670 households)
Information and Methodology
Information comes from the U.S. Inside Income Service (IRS) SOI Tax States – Historic Desk 2: Individual Income and Tax Data for tax 12 months 2022, the most recent 12 months obtainable. Information for 2020 and 2021 have been additionally thought of. States have been ranked based mostly on the share of tax returns filed that indicated involvement in digital currencies all through the tax 12 months. A taxable sale of cryptocurrency was not needed for a optimistic response.
This story was produced by SmartAsset and reviewed and distributed by Stacker.
