When the popularity of cryptocurrency hit its peak, it offered an alluring alternative to traditional banking systems. Whilst a lot of people were excited about this in the United States, the black community was more keen.
Traditionally, black Americans have had a difficult time engaging with financial institutions. A 2020 report released by the US Federal Reserve showed that more than half of black owners who requested loans did not get them, which is double the rate of white owners.
Understandably, for them, cryptocurrency was supposed to be an equaliser except that things haven’t panned out as they hoped. Before we get into the question, is crypto dead, let’s find out the number of black investors who put their money into cryptocurrency.
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How Many Black Investors Bought Cryptocurrency?
According to a survey done in 2022 by Ariel-Schwab Black Investor Survey, 25% of Black Americans own cryptocurrency and that figure goes up to 38% amongst those under 40. Amongst white investors, that number is only 15% and 29% for those under 40.
Black investors at 11% are more likely to have cryptocurrency as their first investment as compared to 4% of white Americans. For those under 40, cryptocurrency was likely their first entry into the stock market.
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What Happened to Cryptocurrency?
In 2022, a huge fallout emerged between the biggest Binance and FTX over the latter’s financial outlook that resulted in an investigation. Binance was set to buy out FTX and then FTT. This was because it was seeking a bailout from a potential collapse.
Binance pulled out in the wake of these findings which led to the FXT collapse. This caused turmoil in the industry and investors withdrew their money.
Is Crypto Dead?
Is crypto dead? Despite the turmoil witnessed in the aftermath of the FXT collapse, the crypto market has shown signs of recovery. Experts are optimistic about the market rebound and so crypto isn’t dead.
Its volatility and uncertainty will always be there due to the lack of regulation but as much as investors might be cautious over their investments, the market is working its way back.
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What Does This Mean for Black Investors?
The black community is hoping that cryptocurrency will finally get them out of their dependence on the traditional banking system. And also open the way to creating generational wealth.
But, sceptics argue that black people are being misled. And this can be seen with the use of celebrities like JayZ and LeBron James in investing in a risky asset that doesn’t have the protections of the traditional banking systems.
In equal measure, optimists maintain that they deserve access to lucrative assets. The crypto market is being likened to the 2000 tech boom which weeded out the bad players and paved the way to a flourishing tech industry.
Should you invest in cryptocurrency? Well, the decision comes down to you. Are you ready to keep up with the volatility, uncertainty and invest in an unregulated market?
Do you understand the crypto market well enough to make sound decisions? If the answer is yes,, then you know what to do.
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