Closing the Wealth Gap: Black America and Bitcoin Adoption
Bitcoin represents an opportunity for financial freedom, education and inclusion for African Americans.
According to Forbes, the median wealth of black and Latino families could reach zero by 2053. Traditionally, black Americans have lagged behind on the wealth ladder, but the adoption of cryptocurrency, especially Bitcoin, could allow a shift in this narrative through education and cost averaging. in dollars.
Investing in bitcoin for African Americans has become a “what have I got to lose” scenario. There is now tons of data on the impact of wealth inequality and how it affects African Americans, which is shocking to say the least. The black and brown community wealth gap has widened due to Jim Crow segregation, redlining, mass incarceration, high unemployment, and lack of financial literacy. Bitcoin is not centralized by any one entity, company, person or country, which means that it is not controlled by a single authority or managed in one place. This lack of centrality removes the fundamental flaw in partiality. Bitcoin doesn’t care about your appearance, culture, gender, or religious background.
For this reason, bitcoin is attractive to those who are generally not allowed to obtain wealth, such as African Americans and other groups of various origins. Adoption among this demographic is booming; a recent Harris Poll found that in the United States, 30% of black investors and 27% of Hispanic investors own cryptocurrency, compared to just 17% of white investors. Even outside of the United States, in places like Nigeria, the volume of bitcoin trading and remittances is the highest on the continent, being the main drivers of adoption.
Getting down to zero thanks to an unorthodox education
Typically, financial literacy is taught and passed on to every generation. I can speak for myself when I say that discussions about money took place twice: when you didn’t have it and when someone owed you it. I also had to educate myself on bitcoin under these strange circumstances, while trying to suppress my fixed thinking. Many African Americans are falling behind in their bitcoin and financial literacy education, but that too is changing.
Due to this lack of access, members of the African American community use unorthodox methods to learn about Bitcoin and blockchain technology. Learning the complexity of Bitcoin is no easy feat, even for those who are known to be tech-savvy. In my opinion, books like “Bitcoin and black America“By Isaiah Jackson, “Bitcoin and Black Powernomics»By Will Hobdy and “Bitcoin barsBy Justin Rhedrick are great places to start learning about Bitcoin from a black perspective. Social media apps like Clubhouse focus more on African Americans seeking education and a network of like-minded, crypto-focused people.
Clubs such as Black Bitcoin Billionaires, Crypto for Black Economic Empowerment, and Crypto Church have attracted hundreds of thousands of members. A wide range of topics are covered in this hybrid cross between a podcast and a calling radio network, including getting your investment knowledge from scratch where anyone from anywhere can ask questions or give advice on topics like Bitcoin.
Long-term digital economy
In honor of historic Black Tulsa, once the epicenter of black wealth in America, well-known actor and author Hill Harper launched a fintech app called Black Wall Street – a black business hub in the Greenwood neighborhood in Tulsa, Oklahoma, which was destroyed in a racial attack. Harper encourages all African American investors to buy bitcoin from the app long term using the average dollar cost. Harper said, “We need to encourage black ownership and that’s what we want to do on the platform. We start with a digital wallet and the ability to start learning financial literacy, building community, and empowering people to invest.
The average black family has $ 38,300 in their 401 (k) account by the time they retire. The average white family has an average retirement of $ 168,000 in their 401 (k). This is why bitcoin should be viewed as a form of investment savings for people of color. Statistically, for many African Americans, saving money is difficult, if not impossible. Many Americans have less than three months of savings in an emergency.
Bitcoin, on the other hand, is not confiscable and has no barrier to entry. Bitcoin is a good savings technology when used from a long-term perspective. Traditionally, residents of black and brown neighborhoods get ripped off and sell snake oil schemes to get rich and save money, leaving them without a bank. Check banks and payday loan companies litter black and Latin regions across America. Over the years, this has led to mistrust of banks, a lack of savings and debt. Bitcoin is correcting the gap in the wealth gap and is quickly becoming Plan B to secure asset value for many African Americans.
Buying an entire bitcoin is quite expensive, but buying fractional stocks is not. You can start with an amount as low as $ 2. If you save $ 10 per week for 50 weeks, that works out to $ 520, which can earn you over half a million satoshis at current bitcoin prices. It’s a good, inexpensive way to get exposure to bitcoin and save money at the same time. For many people of color, risk tolerance is low, so the average dollar cost allows them to withstand the volatility of bitcoin price movements. In the long run, bitcoin has performed at 200% over the past decade. Banks cannot guarantee to give their customers this kind of return on savings, so we are seeing a massive abandonment of banks to bitcoin.
Bitcoin is an unrivaled treasury reserve asset, and I think African Americans are realizing that adopting Bitcoin will allow them to catch up in the race for wealth. The Lightning Network will make remittances very easy to transfer. One thing you can’t destroy is an idea, and bitcoin proves it’s better than gold, stocks, bonds, commercial real estate, stocks, silver, everything. I believe this form of intergenerational wealth is here to stay in the black community and is really starting to take hold as an idea of closing the wealth gap.
This is a guest article by Dawdu M. Amantanah. The opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.