August 11, 2021
Black Americans Are Using Cryptocurrency To Take Back Their Financial Fortitude
A new generation of Black financial enthusiasts is using cryptocurrency in increasing numbers to gain financial freedom.
According to a study by the NORC at the University of Chicago, 44% of cryptocurrency traders are investors of color, compared with only 35% stock investors. The study also found these new crypto traders are young and diverse in terms of race, gender, and ethnicity.
Some believe part of the reason Black Americans have embraced cryptocurrency is to make up for decades of lost generational wealth through racist policies ranging from segregation to redlining. Forbes reported a recent Harris poll that found 30% of Black and 27% of Hispanic investors own cryptocurrency compared to less than 20% of White investors.
“Cryptocurrencies are opening up investing opportunities for more diverse investors, which is a very good thing,” Angela Fontes, a vice president in the Economics, Justice, and Society department at NORC at the University of Chicago told Forbes. “In crypto, there’s a lot more information at the basic level because it’s not at the same maturity as traditional stock investing is.”
Isiah Jackson, the author of Bitcoin & Black America, wrote that Black Americans who deposit their money into large banks are feeding a system that does not have their best interest at heart.
Another reason cryptocurrency is popular is it’s largely unregulated. However those days are coming to an end as cryptocurrency regulations are included in the $1 trillion infrastructure bill Senate Democrats passed earlier this week.
That will not stop young Black Americans from getting into cryptocurrency: 50% of Black population in the U.S. are millennials or younger. Additionally, more young Black Americans are getting involved in STEM, cybersecurity, and other areas of the digital age.
One downside when it comes to cryptocurrency are the wild swings they’re subjected to. In April, Bitcoin hit an all-time high of $63,729. However in June, Bitcoin briefly dropped below $30,000.