By Sabrina Lynch
- 23% of African-Americans own cryptocurrency and 44% of investors of color own them as well
- Cryptocurrency Market Triples in less than a year from $770B to $2.7T
Black-owned businesses and their finances were disproportionately impacted by COVID, but now the tides are turning as this demographic is utilizing the technologies behind blockchain to own the cryptocurrency market.Just under one in four, about 23%, of Black people own this cache currency, compared to 11% of White Americans, and 17% of Hispanics. Last year, approximately 13% of Black households in the U.S. were unbanked which left them financially vulnerable. Cryptocurrencies offer a new decentralized financial model allowing Black communities to grow their own wealth, after being ostracized for so long from traditional banking institutions.
Why This Matters: The number of crypto investors is on track to double as a new generation of Black traders emerge, with 44% of cryptocurrency traders being investors of color. In addition, there has been a steady increase of non-traditional investors, those who have no academic credentials or professional training in finance, turning to crypto to escape barriers created by traditional banking methods.
African Americans hold just 3.8% of $116 trillion in wealth in the U.S, leaving them in a severely disadvantaged position to close the racial wealth gap. Cryptocurrencies are affording people of color the same opportunities to contribute to, and earn value from a diverse financial market. The playing field has been leveled, at least some what, which comes just in time as the crypto market cap surged to a record $2.7 trillion.
For example, teachers to blue-collar workers are leveraging the internet to access forums that hold valuable knowledge to get them an equal footing on the financial ladder. Recently, Black Bitcoin Billionaire, an organization focused on promoting inclusion and diversity in the Bitcoin space, received a $150,000 grant from cryptocurrency exchange and bank Kraken to support minority communities. This is welcomed news to Black women who are the fastest-growing demographic of entrepreneurs in America, and they may one day have immense disposable income.
Situational Awareness: Bold steps are being taken by the Black community to make up for lost financial time. The decision to embrace cryptocurrency has been shaped by nearly 24 months of self-navigation through a global health crisis and economic upheaval, causing African-Americans to reclaim their economic power by lucrative investment in crypto market trading.
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