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Racial Disparities in Cryptocurrency: A Decomposition Analysis Cover

Racial Disparities in Cryptocurrency: A Decomposition Analysis

By: ,   and    
Open Access
|Jun 2026

Figures & Tables

Descriptive statistics of crypto ownership

VariablesPooled sampleOwn cryptocurrencyDo not own cryptocurrency
Cryptocurrency ownership0.1044 (0.3058)1.00000.0000
Demographics
Race
  White0.7229 (0.4476)0.6648 (0.4723)0.7297 (0.4442)
  Black0.0949 (0.2931)0.1073 (0.3096)0.0935 (0.2911)
  Hispanic0.1088 (0.3114)0.1229 (0.3285)0.1072 (0.3093)
  Asian/others0.0734 (0.2607)0.1050 (0.3068)0.0697 (0.2546)
  Age53.2279 (17.1581)42.4916 (14.4533)54.4790 (17.0116)
  Male0.5392 (0.4985)0.7095 (0.4542)0.5194 (0.4997)
  Married (Ref. = Unmarried)0.6182 (0.4859)0.6089 (0.4883)0.6193 (0.4856)
Educational attainment
  High school or lower (Ref.)0.2781 (0.4481)0.1296 (0.3361)0.2954 (0.4563)
  Some college0.2756 (0.4468)0.2939 (0.4558)0.2734 (0.4458)
  Bachelor0.2513 (0.4338)0.3520 (0.4778)0.2396 (0.4269)
  Master or higher0.1950 (0.3962)0.2246 (0.4175)0.1915 (0.3935)
Household size2.5506 (1.3281)2.8749 (1.4685)2.5128 (1.3057)
Economics
Household income
  Less than $24,999 (Ref.)0.1157 (0.3199)0.0536 (0.2254)0.1229 (0.3284)
  $25,000 to $49,9990.1662 (0.3723)0.1061 (0.3082)0.1732 (0.3784)
  $50,000 to $74,9990.1658 (0.3720)0.1363 (0.3433)0.1693 (0.3750)
  $75,000 to $99,9990.1297 (0.3360)0.1341 (0.3409)0.1292 (0.3354)
  $100,000 to $149,9990.1945 (0.3959)0.2335 (0.4233)0.1900 (0.3923)
  $150,000 or more0.2281 (0.4196)0.3363 (0.4727)0.2155 (0.4112)
Financial status (compared to 12 months ago)
  Much worse off (Ref.)0.0381 (0.1915)0.0279 (0.1649)0.0393 (0.1944)
  Somewhat worse off0.1579 (0.3647)0.1553 (0.3624)0.1582 (0.3650)
  About the same0.5508 (0.4974)0.4771 (0.4998)0.5594 (0.4965)
  Somewhat better off0.2006 (0.4005)0.2436 (0.4295)0.1956 (0.3967)
  Much better off0.0526 (0.2232)0.0961 (0.2949)0.0475 (0.2128)
Financial condition (compared to 2 years ago)
  Much worse off (Ref.)0.0641 (0.2450)0.0525 (0.2232)0.0655 (0.2474)
  Somewhat worse off0.1698 (0.3755)0.1665 (0.3727)0.1702 (0.3758)
  About the same0.4113 (0.4921)0.3073 (0.4616)0.4234 (0.4941)
  Somewhat better off0.2512 (0.4337)0.2972 (0.4573)0.2458 (0.4306)
  Much better off0.1036 (0.3047)0.1765 (0.3815)0.0951 (0.2933)
Home ownership (Ref. = do not own)0.7172 (0.4504)0.6603 (0.4739)0.7238 (0.4471)
Emergency access (Ref. = do not have)0.6539 (0.4758)0.7095 (0.4542)0.6474 (0.4778)
Total savings and investment
  Under $50,000 (Ref.)0.4295 (0.4950)0.4212 (0.4940)0.4305 (0.4952)
  $50,000 to $99,9990.1163 (0.3206)0.1318 (0.3385)0.1145 (0.3184)
  $100,000 to $249,9990.1392 (0.3462)0.1575 (0.3645)0.1371 (0.3440)
  $250,000 to $499,9990.1058 (0.3076)0.1073 (0.3096)0.1056 (0.3073)
  $500,000 to $999,9990.0903 (0.2866)0.0816 (0.2739)0.0913 (0.2880)
  $1,000,000 or more0.1190 (0.3237)0.1006 (0.3009)0.1211 (0.3263)
Stock ownership (Ref. = do not own)0.4156 (0.4929)0.7441 (0.4366)0.3773 (0.4848)
Others
Financial literacy (Range from 0 to 3)2.2507 (0.9477)2.5106 (0.7697)2.2204 (0.9618)
Risk tolerance (Range from 0 to 10)4.3560 (2.6723)6.0089 (2.2958)4.1634 (2.6466)
Physical health
  Poor and Fair0.1493 (0.3564)0.1017 (0.3024)0.1548 (0.3618)
  Good0.3712 (0.4832)0.3453 (0.4757)0.3742 (0.4840)
  Very good0.3829 (0.4861)0.4223 (0.4942)0.3783 (0.4850)
  Excellent0.0967 (0.2955)0.1307 (0.3373)0.0927 (0.2900)
Employment status (Ref. = not working)0.6080 (0.4882)0.8268 (0.3786)0.5826 (0.4932)
Retirement status (Ref. = not retired)0.3523 (0.4777)0.1397 (0.3468)0.3771 (0.4847)
Sample size8,5758957,680

Logistic regression of crypto ownership across groups

VariablesPooled sample (Odds/S.E.)White (Odds/S.E.)Black (Odds/S.E.)Hispanic (Odds/S.E.)Asian/others (Odds/S.E.)
Demographics
Race (Ref.=White)
  Black1.5480*** (0.2110)----
  Hispanic1.0457 (0.1332)----
  Asian/others1.2030 (0.1635)----
Age0.9549*** (0.0037)0.9546*** (0.0045)0.9532*** (0.0120)0.9534*** (0.0126)0.9385*** (0.0135)
Male1.5663*** (0.1381)1.4989*** (0.1627)1.8722* (0.5249)1.8843* (0.5231)1.5013 (0.4543)
Married (Ref. = Unmarried)1.0716 (0.1082)1.0640 (0.1343)0.7354 (0.2298)1.6473 (0.5155)1.3855 (0.5170)
Educational attainment (Ref.= high school or lower)
  Some college1.5099*** (0.1953)1.3913* (0.2196)1.3829 (0.5402)1.9051 (0.6915)4.9853* (3.6494)
  Bachelor1.0937 (0.1512)1.0195 (0.1701)1.0480 (0.4619)1.6453 (0.6614)2.1844 (1.5865)
  Master or higher0.9658 (0.1457)0.8274 (0.1524)0.7387 (0.3552)1.6419 (0.7488)3.4763 (2.5567)
Household size1.0966** (0.0335)1.1061** (0.0422)0.9851 (0.1029)1.3222*** (0.1119)0.9341 (0.1029)
Economics
Household income (Ref.=Less than $24,999)
  $25,000 to $49,9991.1518 (0.2336)1.1376 (0.2987)1.8694 (0.9344)0.4312 (0.2386)3.6756 (3.5201)
  $50,000 to $74,9991.0954 (0.2216)1.0756 (0.2831)1.2903 (0.6847)0.6381 (0.3384)2.0130 (1.8757)
  $75,000 to $99,9991.2829 (0.2688)1.1022 (0.3015)2.0704 (1.1694)0.9016 (0.4779)3.9548 (3.7530)
  $100,000 to $149,9991.3956 (0.2883)1.4622 (0.3843)2.6580 (1.5935)0.4616 (0.2620)1.9170 (1.7993)
  $150,000 or more1.7896** (0.3850)1.5783 (0.4315)2.5850 (1.6846)2.0964 (1.1857)2.9617 (2.8481)
Financial status (compared to 12 months ago) (Ref.=Much worse off)
  Somewhat worse off0.9316 (0.2663)0.9693 (0.3448)0.5947 (0.5645)2.4464 (2.0109)0.4417 (0.6058)
  About the same0.7682 (0.2319)0.8200 (0.3135)0.4528 (0.4215)1.3249 (1.1759)0.6939 (0.9284)
  Somewhat better off0.7385 (0.2331)0.8648 (0.3458)0.3994 (0.3848)0.6637 (0.6049)1.2223 (1.7099)
  Much better off0.7945 (0.2792)0.8085 (0.3655)0.4198 (0.4422)1.2042 (1.1744)1.1616 (1.7131)
Financial condition (compared to 2 years ago) (Ref.=Much worse off)
  Somewhat worse off1.1468 (0.2599)1.0589 (0.2921)2.1352 (1.9063)0.3755 (0.2500)11.6440 (14.8159)
  About the same0.8847 (0.2175)0.8289 (0.2529)1.9102 (1.6865)0.2699 (0.1985)4.2548 (5.4197)
  Somewhat better off1.0006 (0.2521)0.8977 (0.2819)2.0351 (1.8373)0.7407 (0.5347)1.7576 (2.3111)
  Much better off1.2255 (0.3398)1.1422 (0.4018)2.9781 (2.8073)0.5645 (0.4431)4.3659 (5.7069)
Home ownership (Ref. = do not own)0.7528** (0.0787)0.7990 (0.1053)0.6808 (0.2188)0.4481** (0.1371)0.9180 (0.3367)
Emergency access (Ref. = do not have)1.0206 (0.1016)0.9468 (0.1185)1.4195 (0.4152)0.7934 (0.2311)2.4207* (0.8587)
Total savings and investment (Ref.=Under $50,000)
  $50,000 to $99,9990.8234 (0.1104)0.7395 (0.1227)0.8416 (0.3481)0.8711 (0.3616)1.5269 (0.6876)
  $100,000 to $249,9990.6083*** (0.0802)0.5327*** (0.0870)1.4129 (0.5813)0.5752 (0.2281)0.9467 (0.4222)
  $250,000 to $499,9990.5820*** (0.0890)0.5592*** (0.1012)0.4790 (0.2891)0.6665 (0.3444)0.6653 (0.3561)
  $500,000 to $999,9990.5279*** (0.0906)0.5158*** (0.1046)0.1963* (0.1627)0.5338 (0.3060)0.9662 (0.5591)
  $1,000,000 or more0.4337*** (0.0744)0.4047*** (0.0834)0.8186 (0.6197)0.3564 (0.2207)0.6047 (0.3182)
Stock ownership (Ref. = do not own)4.9921*** (0.4850)5.0531*** (0.6042)6.1590*** (1.8636)7.7546*** (2.3266)3.3253*** (1.1146)
Others
Financial literacy (Range from 0 to 3)1.1778** (0.0638)1.2109** (0.0866)1.2114 (0.1825)1.0064 (0.1468)1.0031 (0.1788)
Risk tolerance (Range from 0 to 10)1.2205*** (0.0228)1.2437*** (0.0296)1.2009*** (0.0622)1.2440*** (0.0688)1.2395*** (0.0812)
Physical health (Ref.=Poor and Fair)
  Good1.0072 (0.1409)0.9668 (0.1734)0.4173* (0.1473)2.1227 (0.9617)2.5237 (1.4092)
  Very good1.0045 (0.1411)0.9262 (0.1662)0.3461** (0.1341)2.4962* (1.1411)3.2407* (1.7969)
  Excellent0.8491 (0.1457)0.8143 (0.1765)0.1457*** (0.0821)1.6439 (0.8948)3.0149 (1.8742)
Employment status (Ref. = not working)1.3140* (0.1656)1.3071 (0.2080)1.1680 (0.4428)1.4115 (0.4922)1.0983 (0.5056)
Retirement status (Ref. = not retired)1.3073 (0.2068)1.1688 (0.2296)1.9126 (0.8944)2.0137 (0.9205)1.0748 (0.6911)
Intercept0.0572*** (0.0213)0.0642*** (0.0295)0.1491 (0.1739)0.0258*** (0.0291)0.0029** (0.0056)
Sample size8,5756,199814933629
R-square0.22770.23150.25950.31230.2795

Correlation matrix of variables

12345678910111213141516171819
1. Cryptocurrency Adoption
2. Race (Minority = 1).0486
3. Age−.2136−.1606
4. Male.1166−.0161.0136
5. Married−.0065−.0727.2207.1158
6. Education.0970.0040−.0718.1013.1241
7. Household Size.0834.1241−.2900.0009.2242.0071
8. Household Income.1177−.0431.0124.1696.3641.5033.1356
9. Financial Satisfaction.0617.0265−.0850.0478.0554.1652−.0044.2089
10. Financial Confidence.0723.0208−.1260.0401.0348.1635−.0082.1965.7565
11. Home Ownership−.0431−.1456.3423.0777.4222.1510.0039.3558.0626.0312
12. Emergency Fund.0399−.0783.1816.0947.1967.2710−.0993.3596.2130.2017.2834
13. Total Investments−.0133−.1184.3420.1462.2882.3605−.0919.5556.1444.1028.3709.4284
14. Stock Ownership.2276−.0418.1157.1434.1611.2821−.0512.3700.1255.1049.2369.2972.4200
15. Financial Literacy.0936−.1144.1065.2088.1580.3445−.0379.3559.0566.0428.2033.2528.3352.2753
16. Risk Tolerance.2112−.0115−.0712.2364.1299.3055.0319.3897.2013.1832.1625.2522.3332.3568.2575
17. Self-Assessed Health.0617−.0535−.0884.0534.1051.2297.0444.2602.1695.1589.1295.2037.2079.1402.1233.2140
18. Employment Status.1530.0625−.4590.1166−.0124.2086.1382.2431.1199.1396−.0125.0260−.0655.0606.0672.2068.1561
19. Retirement Status−.1520−.1197.7001−.0270.1032−.0986−.2583−.1185−.0679−.0882.1807.1245.2227.0720.0269−.1253−.1049−.6711

Racial/ethnic differences in crypto ownership

PooledWhiteBlackHispanicAsian/others
Crypto ownership10.43%9.60%11.79%11.79%14.94%
Sample size8,5756,199814933629

j_fprj-2026-0006_tab_006

Variable NameIdentityDetails
Dependent variable
Cryptocurrency ownershipDummyBought or held as an investment - In the past year, have you done the following with cryptocurrency, such as Bitcoin or Ethereum? (Yes/No)
Independent variable
Demographics
RaceCategoricalWhite (Ref.), Black, Hispanic, Asian, and Other
AgeContinuousRange from 18-94
GenderDummyMale/Female (Ref.)
Marital statusDummyMarried/Unmarried (Ref.) The unmarried group includes widowed, divorced, separated, and never married)
Educational attainmentCategoricalLower than high school (Ref.), high school, some college, bachelor, master or higher
Household sizeContinuousRange from 1–10
Economics
Household incomeCategoricalLess than $10,000 (Ref.), $10,000 to $24,000, $25,000 to $49,999, $50,000 to $74,999, $75,000 to $99,999, $100,000 to $149,999, and $150,000 or more.
Financial statusCategoricalCompared to 12 months ago, would you say that you (and your family) are better off, the same, or worse off financially? Responses include: much worse off (Ref.), somewhat worse off, about the same, somewhat better off, and much better off.
Financial conditionCategoricalCompared to two years ago (2019), would you say that you (and your family) are better off, the same, or worse off financially? Responses include: much worse off (Ref.), somewhat worse off, about the same, somewhat better off, and much better off.
Home ownershipDummyOwn home=1, Pay rent=0
Emergency accessDummyHave you set aside emergency or rainy day funds that would cover your expenses for 3 months in case of sickness, job loss, economic downturn, or other emergencies? (Yes/No)
Total savings and investmentCategoricalunder $50,000 (Ref.), $50,000 to $99,999, $100,000 to $249,999, $250,000 to $499,999, $500,000 to $999,999, and $1,000,000 or more.
Stock ownershipDummyDo you own any individual stock in publicly traded companies directly (i.e., not through a mutual fund or exchange traded fund (ETF))? Please also include any in stock held in a 401(k) or other pension plan. (Yes/No)
Others
Financial literacyContinuousThe sum of the ‘Big Three’ (stock, inflation, and interest). Range from 0–3
Risk toleranceContinuousOn a scale from zero to ten, where zero is not at all willing to take risks and ten is very willing to take risks, what number would you be on the scale?
Physical healthCategoricalPoor (Ref.), fair, good, very good, and excellent.
Employment statusDummyEmployed/Not employed (Ref.)
Retirement statusDummyRetired/Not retired (Ref.)

Decomposition estimation across groups

White vs. BlackWhite vs. HispanicWhite vs. Asian/others



ComponentContribution to difference% of explained differenceContribution to difference% of explained differenceContribution to difference% of explained difference
Demographic
Age−0.0133***117.08%0.0042**20.99%0.0057***14.39%
Male−0.0021***18.31%0.0012**5.84%0.0014**3.66%
Marital status0.00004−0.31%−0.0002−0.91%0.00051.16%
Education0.0004−3.76%0.00146.91%−0.0048*−12.13%
Household size−0.0022*19.22%0.0023**11.75%0.00041.08%
Economics
Household Income−0.0059**52.07%−0.0029**−14.77%0.0042*10.63%
Financial status (compared 1 year ago)−0.00119.41%−0.0002−0.81%−0.0005−1.40%
Financial condition (compared 2 years ago)0.0011−9.88%0.00062.88%0.00061.56%
Home ownership0.0017−15.25%0.0022*11.27%−0.0007−1.67%
Emergency access−0.000030.29%−0.0003−1.29%0.00020.48%
Total investment and savings0.0061***−53.66%0.00094.37%−0.0105***−26.70%
Stock ownership0.0039*−34.15%0.0077***39.11%0.0309***78.65%
Others
Financial literacy−0.0061***54.00%−0.0028−14.40%0.0011*2.79%
Risk tolerance0.0044***−38.89%0.0055***27.93%0.0114***28.92%
Physical health0.0020−18.03%−0.0002−1.05%−0.0003−0.72%
Employment status0.0003−2.90%0.00042.02%0.00153.77%
Retirement status−0.00043.88%−0.0007−3.62%−0.0013−3.26%
Total difference0.0220 0.0219 0.0535
Explained difference−0.0114 0.0198 0.0393
Unexplained difference0.0333 0.0021 0.0141

Percent of explained difference to total difference −52% 90% 74%
DOI: https://doi.org/10.2478/fprj-2026-0006 | Journal eISSN: 2206-1355 | Journal ISSN: 2206-1347
Language: English
Published on: Jun 23, 2026
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2026 Di Qing, Blain Pearson, Ying Chen, published by Financial Advice Association of Australia
This work is licensed under the Creative Commons Attribution 4.0 License.