According to a McKinsey & Co study, many African American families were underserved by US banks and faced additional challenges in obtaining general services such as banking. The report also emphasizes the growing wealth gap, indicating that the wealth of an average white family is ten times greater (net worth approximately $171,000) than that of an African American family. (approximately $17,600)
According to a survey of 1004 young adults (aged 18-29) conducted by the University of Chicago, approximately 34% of traders were people of color who had actively purchased cryptocurrency in the previous 12 months.
African-Americans and their interest in cryptocurrency
Many African Americans have delved deep into the world of cryptocurrency in search of investment opportunities that could provide wealth and a break from traditional banking practices.
According to Ramona Ortega, founder of My Money, My Future, African Americans are turning to Bitcoin after being excluded from traditional banking methods. Furthermore, with the emergence of the cryptocurrency space, even unbanked people of color can create a crypto wallet and transfer funds online using Bitcoin low fee debit cards such as Bitpay or Paxful.
“When we look back at how wealth is built in this country, we see that so many of those opportunities were not available to us at the time or were taken away through regulation and redlining,” Ortega said.
Unlike other currencies, Bitcoin is a one-of-a-kind decentralized digital asset that does not require any intermediary to process transactions. The currency operates on a specialized blockchain network, which functions as a digital ledger that accurately records the details of each transaction.
The cryptocurrency maintains a high price valuation and is particularly appealing to investors due to its limited supply. The digital asset’s current market value is $60,689 due to its scarcity (there are 21 million Bitcoin in total, of which 18.77 million have been mined) (as of October 2021).
Despite being extremely volatile, Bitcoin has broken multiple price records and continues to be the best investment option for many new and experienced investors.