How Black Investors Are Turning To Cryptocurrency And Stocks
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Black Americans are taking up investing in stocks and cryptocurrencies to make up for lost time. These investments are being made in an attempt to erase the huge wealth gap between Black Americans and their White counterparts.
New research suggests that 44% of cryptocurrency investors are people of color and 35% of stock investors are investors of color. As a result of the rising trend of financial inclusion, investors are becoming younger and increasingly racially diverse. Accessibility to investment platforms due to global economic democratization has also pushed more diverse groups to invest in cryptocurrency. It is believed that bold investments should be made to overcome the large wealth gap in the US. These young investors are trying to take the power back and grow their wealth.
Institutional racism in the form of Jim Crows laws and modern redlining has stood in the way of Black Americans building generational wealth. According to the Federal Reserve, Black Americans hold 3.8% of $116 trillion in wealth in the US. Black investors are being given the opportunity to learn from other successful Black entrepreneurs and investors and build up new wealth.
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Black investors are being conscientious in their investing decisions and holding onto cryptocurrency. A recent Harris Poll survey found that 30% of Black investors own cryptocurrency compared to 17% of White investors. Black investors are putting their faith in cryptocurrency and are hoping that their wealth will continue to grow with these investments.
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The same survey suggests that over half of Black and Hispanic Americans that have heard of cryptocurrency see its decentralized nature as a positive thing – compared to 44% of all Americans. This may be linked to the fact that Black Americans have limited access to banking. Recent data from McKinsey and Company suggests that approximately 47% of Black American households are unbanked. Black families tend to be underserved and overcharged by financial institutions. Thus, it makes sense why Black Americans are turning to an unregulated form of investing; regulated financial institutions do not respect the financial needs of Black people.
Bitcoin pro and author of Bitcoin & Black America, Isaiah Jackson, told CNBC that cryptocurrency is a suitable ‘Plan B’ for Black investors. He suggests that because there is no barrier to entry for cryptocurrency investors, it is a good option for Black investors that have been turned away constantly from regulated financial institutions.
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Also, the Black community is on the rise. Black women are the fastest-growing demographic of entrepreneurs in the US. Financial institutions are starting to bet on Black entrepreneurs in the form of funding and Black people’s access to university educations is on the rise. This means that more Black people are starting to come into money and are ready to invest in stocks and cryptocurrencies.
Cryptocurrency is a popular form of investment if you take your time to research and understand exactly where your money is going, you may be successful with your crypto investment. It is a popular option for Black investors who are skeptical of traditional banking and methods of investment. Institutions are constantly rejecting and letting down Black people in the US so an unregulated form of investment is seen as a good option among members of the Black community.
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References:
bloomberg.com|.forbes.com|mckinsey.com|reuters.com|wsbtv.co|cnbc.com
