The University of Chicago conducted a survey of 1004 young adults (aged 18-29) and discovered that approximately 34% of traders were people of color who had actively purchased cryptocurrency in the previous 12 months.
Many African Americans have delved into the world of cryptocurrency in search of wealth-generating opportunities and a break from traditional banking methods.
According to a McKinsey & Co report, many African American households were underserved by US banks and had additional challenges in obtaining basic services such as banking. The report also emphasizes the widening wealth gap, which shows that the wealth of an average white family is ten times that of an African American family (net worth approximately $171,000). (approximately $17,600)
African Americans are reportedly using Bitcoin after being shut out of traditional banking methods, according to Ramona Ortega, founder of My Money, My Future. Even unbanked people of colour can create a crypto wallet and transfer funds online using Bitcoin low-fee debit cards like Bitpay or Paxful, thanks to the burgeoning cryptocurrency space.
“When we look back at how wealth is created in this country, so many of those changes were either not available to us at the time or were taken away by regulation and redlining,” Ortega said.
Unlike other currencies, Bitcoin is a one-of-a-kind decentralized digital asset that processes transactions without the use of a middleman. The currency is based on a customized blockchain network, which functions as a digital ledger that accurately records the facts of each transaction.
The cryptocurrency maintains a high price valuation and is particularly appealing to investors because of its limited supply. The digital asset’s current market worth is $60,689 due to its scarcity (there are 21 million Bitcoins in total, of which 18.77 million have been produced) (as of October 2021).
Despite its high volatility, Bitcoin has broken multiple price records and continues to be the best investment option for many new and experienced investors.
