Best States for Crypto Businesses in 2022
- California, New Hampshire, and Texas are the best states for crypto-friendly businesses in 2022.
- Searches for crypto jobs have increased by 166% over the past year.
- 2 in 5 business owners hold or invest in cryptocurrency as part of their business strategy.
Crypto for the Masses
Crypto isn’t jockeying for a seat at the financial market table anymore, and the American public has seen the mainstream-ification of decentralized currency over the past year. As the cryptocurrency industry gains momentum and influence in financial and political sectors, future growth is inevitable. It’s simply a matter of where in the country that growth will continue to take place.
Our research indicates that many states like California and Texas are especially inviting for decentralized finance (DeFi), making them hotspots for crypto miners, investors, and businesses. Whether it’s the prevalence of new startups, crypto ATM accessibility, or businesses accepting payments, these crypto-friendly states are opening doors to the industry’s future.
Our study looked at five key metrics to determine which markets were favorable for crypto as payment and asked business owners directly how they are adapting and investing in crypto to grow their business. Read on to find out where your state ranks in the list of the best places for crypto businesses in the U.S.
Crypto Capitals of America
As states move to either regulate or welcome cryptocurrency exchanges with open arms, California, New Hampshire, and Texas are positioning themselves to benefit from the bustling growth of this industry. Our research indicates some states are providing and even promoting a healthier environment for the development of crypto business than others.
Best States for Crypto Business
Worst States for Crypto Business
Currently ranked near the top of this list, New Hampshire’s openness to cryptocurrency could change soon as the governor has established a commission to regulate the industry more closely than in previous years. West Virginia, which at one point sought to ban Bitcoin from the state entirely, received the lowest score of any state in the U.S.
Even with new legislative interest in regulating the market more heavily, searches for cryptocurrency and blockchain jobs dramatically increased in the past year.
Rising search interest in blockchain and crypto jobs shows that the workforce is increasingly interested in careers in blockchain tech and lauded Web3 technology.
This spike in interest comes at a time when a flurry of layoffs and cooling stock prices in the tech sector might be anxiety-inducing for professionals looking for opportunities in the tech space. However, venture capital funding for blockchain startups tends to fly in the face of the broader industry’s issues, as Web3 tech received more funding than ever in Q1 2022.
What Does it Mean to Be Crypto-Friendly?
Below is how the top states in the country ranked in terms of crypto accessibility and presence. We focused on job search interest in crypto, the prevalence of crypto ATMs, open market regulations, and crypto-friendly businesses to determine the best places for crypto in the U.S.
With crypto being one of the newer innovations of the financial tech industry, professionals are also increasingly interested in finding jobs in the space. We analyzed job search interest for crypto jobs and found that residents in Washington, Virginia, and California were most interested in seeking blockchain and crypto job opportunities. Professionals in California would have an advantage: California is the gold standard for crypto-friendly business environments in the U.S. and would offer potential employees the most options.
Despite not being as populous and famous for their history of tech success, other states like New Mexico, Texas, and New Hampshire are becoming more accessible to DeFi companies. Texas trails California in population by about 25% but has nearly twice as many crypto ATMs. A surge of crypto miners in the state also has officials worried that the fragile power grid soon won’t be able to keep up.
Though searches for crypto were relatively low in New Hampshire, the state boasts the most businesses per capita that accept crypto. The Live Free or Die state has a history of not imposing restrictions on its residents, and it currently has weak regulations on cryptocurrency.
New Mexico, which has the most crypto ATMs per capita of any state in the U.S., has a history with big tech. Microsoft, which began accepting crypto through its online store as early as 2014, was founded there.
Business Owners Prefer Crypto Over NFTs
Our study found many business owners see a bright future in crypto. Whether investing or accepting payments in crypto, business owners are open to adopting new ways to diversify their business strategies.
Perhaps following the lead of larger corporations that have invested in crypto over the past few years, we found that almost 40% of business owners invested in decentralized currency as part of their business strategy. However, even the crypto optimists in the business leaders community are cautious about relying on mainstream cryptocurrency adoption: 3 in 4 of those who believe crypto will see mainstream adoption in the future think that such a scenario is still at least five years out.
Critics have recently noted the volatility of the crypto market, but a popular term in the crypto community is “zoom out.” Crypto supporters prefer to emphasize the massive growth many coins have seen since 2014, and “zooming out” puts recent dips into a broader perspective for those seeking to invest long term rather than to turn a quick profit.
NFTs enjoyed a blazing moment in the spotlight in 2021 but were far less popular than traditional cryptocurrencies among the business owners in our study. Only about 5% of business owners said they planned to use NFTs as part of their business strategy in 2022.
Compensating employees in crypto was unpopular among the business owners we surveyed. Despite some public figures taking salaries in the two most popular coins, including the Mayor of New York City and several prominent athletes, most business owners weren’t as keen on the concept. However, with just under a third of those owners either moderately or extremely interested, payment in crypto could be a more popular idea as crypto continues to gain momentum and prevalence in the financial market.
The Next Generation of Currency Is Here to Stay
With states like California and Texas making moves to attract top DeFi companies and talent, these states will have the advantage of a crypto-friendly business environment. Despite the industry’s inherent volatility, interest across the nation is not subsiding. The growing prevalence of crypto ATMs and the acceptability of the currency in places like New Mexico indicate an industry ripe for even more growth and diversification in the uses of crypto. It may not be the dawn of the crypto age anymore (the chance to buy the hottest currency at a reasonable price point has passed), but with more states opening up to the crypto industry, it’s possible we’ll see new coins develop in these locations in the future.
We developed this metaranking by synthesizing data from several sources: Quality blockchain companies from The Manifest, crypto jobs search interest from Google Trends, crypto ATMs and crypto-accepting businesses from Coinmap, and original research into state-by-state regulations on the creation and use of cryptocurrency.
We also surveyed 595 business leaders across a wide range of companies to develop insights into how businesses are incorporating cryptocurrency into their operating strategies. This survey has a 4% margin of error at the 95% confidence level. Please note that survey data can be subject to limitations related to self-reporting.
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