Coinbase recently published an article on Black Americans and cryptocurrency. The article have very interesting conclusions on the relationship between cryptocurrency and Black people in America. Most of the reasoning behind black Americans taking more of an interest in cryptocurrency revolve around the challenges that many have faced in the Traditional financial system.
Two of the main reasons that black people seem to be open to research the Possibilities a bit of cryptocurrency are personally being affected or knowing someone who has been affected negatively by the traditional financial system along with experiencing the challenges of having access to the traditional financial system.
Discussing this topic is of importance to me because Not only does it affect me personally but also keeping in mind the various studies that discuss the wealth gap between the races and the challenge on how to close the gap. The wealth gap that has been part of the black community in history because of the financial aid society policies can start to be leveled out because of cryptocurrency and this is a rare opportunity to get in on the ground floor of a new asset class that can be very lucrative for all parties involved.
The article discussed several reasons why black people are more open to the possibility that cryptocurrency’s offer. One of the biggest reasons is what happened in the past with traditional finance and black people. 48% of black people aged 18-34 and 32% of black people aged 55 and above have been negatively impacted by the financial system because of bias. There of been plenty of reports and new stories whether it be mortgages or car loans or personal loans where black people were not given the same credit terms and offers as their white counterparts with the same credit profile. This has cost the Typical black family thousands more than the typical white family with the same criteria. One way to make up the difference is by investing in cryptocurrency now if for the future which may help with generational wealth. Because cryptocurrency’s allow financial transactions to take place without face-to-face interaction the likelihood of Financial Discrimination becomes less.
There are several other reasons including being excited about the technology that cryptocurrencies bring and understanding how the tech works are also key factors that the article discusses. The key findings from the research are:
- Twice as many Black Americans have been negatively impacted by the current financial system as White Americans
- College-educated Black Americans are nearly twice as interested as college-educated White Americans in learning more about crypto
- The majority of Black Americans believe tech will have a positive impact on society
- 1 in 3 Black Americans believe all ethnicities/races have equal access to the financial system
- Black Americans lead the charge when it comes to interest in understanding crypto
What This Means:
Discrimination in the financial sector has been a major reason that the wealth gap between the races appear. The interest that black Americans are taking into learnings about the tech of crypto and taking charge to understand crypto can allow Cryptocurrencies to work as a way to create wealth and to help close that wealth gap. Take a look at the different ways to use cryptocurrencies in your retirement portfolio to help reach retirement comfortably.
See the links below for further information on this discussion and for more information on how you can invest in Cryptocurrencies for retirement: