The cryptocurrency industry is currently worth more than $1.8 trillion globally, compared to its value of roughly $200 billion two years ago. In the U.S., consumers and businesses are latching onto virtual currency and blockchain technology in droves; however, federal guidelines are only beginning to take shape. Most recently, President Biden signed an executive order to examine the benefits and risks of virtual currency.
Some states are enacting cryptocurrency-friendly regulations that permit the use of cryptocurrency across different business applications. Additionally, consumer access and interest varies widely across the country. For instance, cryptocurrency-related jobs are popping up in some states more than others. Indeed, there are true labor force implications at play here — beyond the dynamics of armchair investors hoping their fad coins go “to the moon.”
In this study, SmartAsset uncovered the best states for cryptocurrency enthusiasts. We considered five metrics to calculate our rankings. They include the number of Bitcoin ATMs and tellers per 100,000 residents, the number of cryptocurrency-friendly merchants per 10,000 establishments, the number of cryptocurrency job postings per 10,000 listings, cryptocurrency regulation friendliness and cryptocurrency Google search interest. For more information on our data sources and how we put all the information together to create the final rankings, read our Data and Methodology section below.
Key Findings
- Western states dominate the top 10. Half of the top 10 states belong to the West including Nevada at No.1, followed by California, Colorado, Arizona and Oregon. These states rank particularly well for high cryptocurrency Google search interest.
- Access to cryptocurrency funds has exploded over the past two years. The number of Bitcoin ATMs and tellers has increased steadily in every state over this time frame. One of the largest increases took place in New Mexico, where the number of Bitcoin ATMs increased from seven in 2020 to 306 in 2022.
- The top states dominate most in crypto-friendly government legislation. Using findings from Cryptalker, we classified state regulations on cryptocurrency as friendly, unclear or hostile. Across all 50 states, 14 states have legislation that is friendly, eight states are more hostile in nature towards cryptocurrency and the remaining 28 states have an unclear legislative impact.
1. Nevada
Nevada ranks as the best state for cryptocurrency enthusiasts. Google search interest for cryptocurrency-related terms ranks second-highest, at 92.50 (on a scale of 0 to 100, with 100 being the most search interest). For those interested in seeking employment in the cryptocurrency industry, we found that there are 16.78 cryptocurrency job postings per 10,000 listings, the 10th-highest rate.
Cryptocurrency legislation in this state is friendly, according to Cryptalker classifications. Electronic signatures on a blockchain are legal, and local governments are prohibited from taxing blockchain technology.
2. Florida
When it comes to accessing cryptocurrency funds, Florida ranks third-best for the number of Bitcoin ATMs and tellers per 100,000 residents (14.26). In gross terms, there are roughly 3,100 Bitcoin ATMs and tellers available. Florida also ranks eighth-best for cryptocurrency-friendly merchants per 10,000 establishments (2.49). Google search interest for cryptocurrency-related terms in this state is also high, ranking fifth-best in our study, and current Florida legislation is friendly toward virtual currency.
3. California
The Golden State has the highest Google search interest in cryptocurrency-related keywords across all 50 states (97.75 out of 100). California also ranks 11th-best for cryptocurrency-related job postings per 10,000 listings (16.59). For consumers, there are 180 businesses currently accepting cryptocurrency, or 1.86 per 10,000 total establishments. There are also 3,608 Bitcoin ATMs and tellers (9.16 per 100,000 residents) in the state, ranking 25th-best per capita.
California’s regulatory stance on cryptocurrency is unclear. Legislation was introduced to impose limitations on use of the virtual currency; however, competing legislation seeks to encourage its use.
4. New Jersey (Tie)
Search interest in cryptocurrency is high in New Jersey, ranking third-best (88.25 out of 100). There are 10.70 Bitcoin ATMs and tellers per 100,000 residents, which ranks 14th-best in our study. For job seekers interested in the cryptocurrency industry, we found that there are 10.75 cryptocurrency-related jobs per 10,000 job listings on Indeed.
Legislation in New Jersey is classified as friendly, with the state taking steps to define virtual currency and provide the foundation for the industry to grow within its borders. At the end of 2021, a bill was introduced to regulate cryptocurrency in a way that not only encourages business growth but also protects consumers.
4. Texas (Tie)
The Lone Star State ranks fourth-best for the number of Bitcoin ATMs and tellers available per 100,000 residents, at 14.10. Texas also ranks 17th-best for the number of merchants per 10,000 establishments who accept cryptocurrency as a form of payment (1.64). Finally, legislation in Texas is friendly towards cryptocurrency, with bills introduced to define and recognize the legal status of virtual currency.
6. Colorado
In Colorado, average Google search interest for cryptocurrency-related terms (77.50 out of 100) ranks ninth-best across all 50 states. For enthusiasts looking to spend their virtual currency, Colorado ranks seventh-best for the number of cryptocurrency-friendly merchants available (2.58). Finally, Colorado cryptocurrency regulation is friendly, with the state set to become “the first state to accept cryptocurrency as payment for state taxes and fees.”
7. Illinois
In Illinois, there are 12.10 Bitcoin ATMs and tellers per 100,000 residents (ranking seventh-best). As a gross number, that is 1,523 ATMs and tellers. Average Google search interest in cryptocurrency-related keywords is 14th-highest. For job seekers, there are 11.44 cryptocurrency-related job postings per 10,000 listings, which ranks 22nd-best.
Legislation is classified as friendly, with government conversation steering towards integrating virtual currency into the economic environment of Illinois.
8. Arizona (Tie)
Arizona ties with Oregon as the eighth-best state for cryptocurrency enthusiasts. For consumers, Arizona ranks 12th-best for the concentration of merchants who accept cryptocurrency (1.90 per 10,000 establishments). For access to virtual currency, there are 9.81 Bitcoin ATMs and tellers available per 100,000 residents (ranking 21st-best). Arizona also ranks 21st-best for the availability of cryptocurrency-related jobs (11.60 per 10,000 job postings).
Arizona is one of two states in our top 10 where the legislative impact is unclear. There have been laws introduced that encourage blockchain development, but there has also been legislation that limits the use of blockchain in certain circumstances.
8. Oregon (Tie)
Another Western state in the top 10, Oregon ranks sixth-best for the concentration of cryptocurrency-friendly merchants (2.86 per 10,000 establishments). Google search interest around the topic of cryptocurrency ranks 10th-best, scoring a 75.50 out of 100. For job seekers, there are 13.18 cryptocurrency-related jobs per 10,000 listings in the state (ranking 16th-best). Like in Arizona, the impact of legislation in Oregon on the cryptocurrency regulatory environment is unclear.
10. Kansas
The final spot in the top 10 belongs to Kansas. This state ranks as the best state for available cryptocurrency-friendly merchants (13.19 per 10,000 establishments). Kansas ranks 31st-best for both cryptocurrency-related Google search interest (54.50 out of 100) and the number of Bitcoin ATMs and tellers available (8.72 per 100,000 residents). For a job seeker, there are 12.94 cryptocurrency-related job postings per 10,000 listings, the 18th-highest rate in our study.
Legislation in Kansas is considered friendly towards cryptocurrency as the state has defined virtual currency as not taxable and not subject to oversight.
Data and Methodology
To find the best states for cryptocurrency enthusiasts, SmartAsset looked at data for all 50 states. We compared them across five metrics:
- Bitcoin ATMs and tellers per 100,000 residents. Data comes from CoinATMRadar and the Census Bureau’s 2020 1-year American Community Survey. CoinATMRadar data is as of March 2022.
- Cryptocurrency-friendly merchants per 10,000 establishments. Data comes from Coinmap.org and the Census Bureau’s 2019 County Business Patterns Survey. Coinmap.org data is as of March 2022.
- Cryptocurrency job postings per 10,000 listings. Data comes from Indeed and reflects job postings live on their website in March 2022.
- Cryptocurrency regulation friendliness. Depending on current cryptocurrency legislation, states are classified as friendly, unclear or hostile. Data comes from Cryptalker.
- Average cryptocurrency Google search interest. This is an average score of search interest for the following four keywords: Cryptocurrency, Bitcoin, Ethereum and Litecoin. Scores for each keyword are on a scale of 0 to 100, with 100 indicating the most search interest. Data comes from Google Trends.
We ranked each state in every metric, giving a full weight to all metrics. Using those rankings, we found each state’s average ranking and used the average to determine a final score. The state with the highest average ranking received a score of 100, ranking as the best state for cryptocurrency enthusiasts. The state with the lowest average ranking received a score of 0, ranking as the worst state for cryptocurrency enthusiasts.
Tips for Managing Your Cryptocurrency Investments
- Make sure you’ve got the right tools at your disposal. No matter whether you’re a new or seasoned investor, understanding the cryptocurrency marketplace is vital before investing. SmartAsset offers a guide that covers the basics of investing in cryptocurrency and our capital gains calculator can give you a clear picture of some of your investment taxes.
- Monitor the investment climate. According to Daniel Chan, Chief Technology Officer of Marketplace Fairness, “If you’re new to the cryptocurrency market, it is important to do your research and to invest only what you can afford to lose. Seasoned investors should keep an eye on technological developments and regulatory changes in the cryptocurrency market to stay ahead of the curve.”
- Work with a professional. Cryptocurrency is a volatile asset, but data shows it can be a worthwhile, long-term investment. Speaking with a financial advisor on cryptocurrency investments and your overall plan is important. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Questions about our study? Contact press@smartasset.com.
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