The alluring promise of Bitcoin has already enamored many investors from a diverse set of backgrounds. Despite the increasing possibility that a large number of Black Americans can potentially benefit off the boom in cryptocurrencies, however, virtually no attention is being paid to the fact that Bitcoin and other digital tokens could potentially be the Black wealth creator. What’s the truth behind the promise of Bitcoin when it comes to the Black community and narrowing racial inequality?
Here’s a breakdown of Bitcoin’s prospects to be the next Black wealth creator, and what the future might hold for the cryptocurrency.
Wealth Creation Is Sorely Needed
The primary reason that Bitcoin should be of interest to Black investors everywhere is that wealth creation in African American communities is sorely needed. Generational wealth gaps continue to beset Black Americans across the country, with children in Black households being substantially less likely to enjoy a greater standard of living than their parents compared to their White counterparts. As a matter of fact, research has consistently demonstrated that Blacks still trail Whites in everything from household wealth to college completion, indicating that a stimulus is sorely needed to help bolster the Black community’s economic prospects.
While data from the Pew Research Center clearly elucidates the fact that there’s a gaping wealth gap between the Black community and others in the United States, however, data from other sources show that cryptocurrencies are still mostly a White phenomenon. Information released by the government of the State of Massachusetts indicates that only 37 percent of Black Americans who responded to a survey indicated they had heard about virtual currencies. Whereas 54 percent of Whites and 51 percent of Hispanics had at least heard of such things as Bitcoin before, it seems precious few Black Americans realize the potential of these nascent digital tokens.
It remains to be seen whether Bitcoin can become a major engine of wealth creation for Black investors, though. The cryptocurrency has weathered a brutal fall from the heights of its lofty valuation, for instance, and many critics continue to dismiss tokens like Bitcoin as being too volatile and shady to be viable long-term investments. Nonetheless, mainstream economic actors like big banks and major corporations are beginning to pay serious attention to cryptocurrencies, so it’s not unfair to assert that everyday investors interested in such tokens as Bitcoin can still profit from them.
Role Models Are Needed
For Bitcoin to become a true Black wealth creator, role models are needed to clearly illustrate that communities of color can benefit off the disruptive emergence of cryptocurrencies like Bitcoin. In that regard, positive progress has been made; forums have been established so that Black Bitcoin investors can congregate and share investment advice and news, for instance. With Black communities across America routinely suffering from underfunded schools, a lack of access to technology, and stigmas that prevent them from entering the tech scene, digital meeting spaces will be an important part of helping introduce Black investors to the exciting but oftentimes confusing world of cryptocurrencies and the bitcoin wallet.
Popular entrepreneurs and social media celebrities will also be needed to help spread the news about Bitcoin and other cryptocurrencies to Black audiences. There’s already a large number of inspiring examples about Black trailblazers in the cryptocurrency community, yet with little attention being paid to them in the mainstream media it’s hard to generate a buzz that potential Black investors can hear. Highlighting some of the top trailblazers in the Black community when it comes to the dizzying cryptocurrency market will continue to be an important facet of introducing the broader community to cryptocurrencies as a whole.
Much in the same way that young Black investors will need role models to help steer them into the industry, Bitcoin will need a healthy cryptocurrency market to remain a viable investment asset for long. The world’s leading cryptocurrency has taken a serious hit since its popularity peaked, and many are beginning to muse that the profitability of such digital tokens has been overblown. Cryptocurrencies and the underlying blockchain technology that powers them have remained hot-ticket assets despite the criticisms swirling around them, though, and the volatile nature of the market means sudden losses can always be reversed.
With major banks starting to invest in cryptocurrencies, and with large tech companies increasingly paying attention to the underlying blockchain technology that enables these tokens, it’s safe to say that Bitcoin isn’t going anywhere anytime soon. Despite its economic potential, however, it’s not entirely clear the Black community will become sold on the idea of Bitcoin, let alone other tokens like Ethereum which are largely unknown outside of the trading community. A lack of structural access to technology and STEM training, for starters, remains a major hurdle in Bitcoin’s path to becoming an engine for Black wealth creation. Despite these hurdles, however, Black investors will continue to show that with perseverance and know-how, cryptocurrencies like Bitcoin can still be used to turn a profit.
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