A recent investigative report by cryptocurrency tax service company CoinTracker analyzed user data from major US cities and compiled some intriguing rankings, such as which cities have the most cryptocurrency users and the highest per capita holdings. The report reveals that cryptocurrency users in San Francisco, USA, hold over $55,000 in cryptocurrency per person. Surprisingly, their preferred asset isn't Bitcoin.
Over the past decade, owning cryptocurrency has made many people exceptionally wealthy. Rising cryptocurrency prices brought significant fortunes to early adopters, though recent price declines have left millions of later entrants facing challenges.
So, who is participating in buying cryptocurrency? At CoinTracker, we help people calculate their cryptocurrency taxes and track their portfolios. This gives us unique insights into how much wealth participants have accumulated and which cities are deeply involved in cryptocurrency.
Before revealing the results, let's take a moment to understand the analytical method used in this study: We examined data from thousands of anonymous CoinTracker users who utilized the service to calculate their cryptocurrency taxes from 2013 to 2020. The research then analyzed this data by geographic location.
We found that the number one cryptocurrency city in the US is San Francisco, followed by New York and Los Angeles. However, after adjusting for city population size, the city with the highest proportion of cryptocurrency users is actually Ashburn, Virginia, followed by Redmond, Washington, and San Francisco, California.
The wealthiest cryptocurrency city is also San Francisco, where users hold over $55,000 in cryptocurrency assets per person. While most US cryptocurrency users built their wealth through Bitcoin, San Francisco users are an exception. More than half of their cryptocurrency wealth comes from Ethereum (ETH).
San Francisco is the epicenter of the cryptocurrency craze, hosting the highest number of cryptocurrency users, followed by New York and then Los Angeles. It's noteworthy that San Francisco has twice the number of cryptocurrency users as Los Angeles, the third-ranked city.
Unsurprisingly, major metropolitan areas like New York, Los Angeles, Chicago, Houston, and Atlanta all feature in the top ten cities for the number of cryptocurrency users.
When adjusted for population size, the US city with the densest concentration of cryptocurrency users is Ashburn, Virginia. The second place goes to Redmond, Washington, home to Microsoft's headquarters. Many smaller cities in Silicon Valley, such as Santa Clara, Mountain View, Sunnyvale, Palo Alto, and San Mateo, also rank in the top ten. Larger tech hubs like San Francisco and Seattle made the top ten list, alongside Cambridge, Massachusetts, the location of Harvard, MIT, and several tech companies.
Now that we've identified the most popular places for cryptocurrency in the US, how much cryptocurrency assets do participants actually hold? The data shows the situation in various major US cities as of February 2020.
The San Francisco Bay Area is home to the wealthiest users, dominating the top four spots. San Francisco again ranks first, with users in the area holding over $55,000 per person in cryptocurrency, easily surpassing the second-place city, Palo Alto.
Finally, let's examine how cryptocurrency wealth is distributed across different coins and how it varies from city to city.
Undoubtedly, Bitcoin is the most held cryptocurrency asset among Americans. For these users, more than half of all their cryptocurrency wealth comes from Bitcoin, followed by Ethereum (ETH).
However, a different picture emerges when we break it down by city.
In some cities, most wealth was created by holding Ether. For example, a significant majority (66%) of cryptocurrency users in the San Diego area primarily hold Ether. Users in San Francisco show a similar preference.
Based on this analysis, a large portion of American users who grew wealthy from the cryptocurrency wave are from areas with a high concentration of tech companies. Places like San Francisco and its Silicon Valley suburbs led in early cryptocurrency adoption. Additionally, areas like Northern Virginia and Seattle also have many users who have started using cryptocurrency. Many of these locations boast large tech communities, meaning plenty of people were prepared and willing to dive into the forefront of cryptocurrency.
Frequently Asked Questions
What was the main finding about San Francisco's cryptocurrency users?
San Francisco emerged as the US city with the highest number of cryptocurrency users and the highest per capita holdings, with an average of over $55,000 per user. Interestingly, their wealth was primarily built on Ethereum, not Bitcoin.
Which city has the highest density of cryptocurrency users relative to its population?
Ashburn, Virginia, has the highest density of cryptocurrency users when adjusted for its population size. It is followed by Redmond, Washington, and then San Francisco, California.
Which cryptocurrency is most commonly held by Americans overall?
Bitcoin is the most held cryptocurrency asset among Americans overall, constituting more than half of the total cryptocurrency wealth for the users studied in this report. Ethereum (ETH) is the second most popular asset.
Why do tech hubs dominate these cryptocurrency rankings?
Tech hubs like Silicon Valley, Seattle, and Northern Virginia have large communities familiar with innovative technology and early-stage digital trends. This culture of innovation and a higher risk tolerance likely encouraged earlier and deeper adoption of cryptocurrencies.
Where can I learn more about building a diversified cryptocurrency portfolio?
For those interested in exploring strategies for a balanced crypto investment approach, you can 👉 discover advanced portfolio management techniques used by seasoned investors.
How was the data for this report collected?
The data was gathered from thousands of anonymous users of the CoinTracker tax calculation service for the years 2013 to 2020. The analysis was then performed based on the geographic location of these users.