Black Americans Take Advantage of Bitcoin: Financial Inclusion in Crypto
• Black Americans have become increasingly interested in bitcoin due to its blockchain technology and potential for high returns.
• Many black investors purchased bitcoin with the COVID-19 stimulus checks they received in 2020.
• Following a crypto crash, many within the Black community are still striving to find financial autonomy through Bitcoin investments.
The Growing Interest of Bitcoin Amongst Black Americans
Bitcoin has been gaining increased attention from investors, media outlets, and regulatory authorities as its value rises and adoption becomes more widespread across the globe. However, not much is known about the black investor base that has been attracted to it. Regardless of whether or not you are deciding to invest in bitcoin, there are important lessons to be learned from these black American investors that can help make you a smarter investor no matter what asset class you choose to invest in.
Investment Opportunities During COVID-19
In the latter part of the 2010s, a noticeable number of African American individuals began researching into Bitcoin with enthusiasm; mainly because of its blockchain technology which provides an immutable record of transactions along with its potential for earning high returns on investments. Furthermore, when the coronavirus pandemic struck in 2020 and stimulus checks started being distributed amongst millions who had never invested before suddenly had cash liquidity available – this further contributed towards an influx of investors into Bitcoin as well.
The Crypto Bubble
Shortly after this period where many black individuals had invested funds into Bitcoin, the overall cryptocurrency market saw a decline and digital currencies entered into a ‘winter’ period resulting in more than $2 trillion worth of losses over 12 months – with Bitcoins crashing from highs of $69K per coin down to around $20K per coin at present day prices. This significant drop affected African American communities harder than any other demographic given their higher propensity for investing funds into cryptocurrencies compared to other communities (according to data collected by Harris Poll).
Addressing Financial Inclusion
Bitcoin holds particular appeal for small-dollar investors from historically marginalized communities who do not trust traditional finance systems – African Americans can purchase BTC on digital platforms without having going through credit checks which may otherwise hold them back from accessing financial inclusion for other assets classes. Despite the recent crypto crash hitting hard at many individual’s wallets – there is still a strong desire amongst those within this community to strive towards achieving financial autonomy through their investments into bitcoin.
Conclusion
African American individuals have found great potential investment opportunities through cryptocurrencies such as Bitcoin – particularly during periods like COVID where stimulus checks were distributed widely providing much needed liquidity and access even for small-dollar investors who weren’t able to access traditional financing options previously held back by credit checks required by most mainstream finance institutions. That being said – it is important when investing any asset class including crypto that one takes caution and does thorough research prior making any decisions so as not end up losing money due sudden market downturns like we have seen recently in cryptocurrency markets across the board globally.
