According to Forbes, the median wealth of Black and Latino families could hit zero by 2053. Traditionally, Black Americans lag behind on the wealth scale but the adoption of cryptocurrency, in particular Bitcoin, could allow a change in that narrative through education and dollar-cost averaging.
Investing in bitcoin for African Americans has become a “what do I have to lose” scenario. There is now tons of data on the impact of wealth inequality and how it affects African Americans which is downright shocking to say the least. The Black and Brown community’s wealth gap has widened through Jim Crow segregation, redlining, mass incarceration, high unemployment and lack of financial literacy. Bitcoin is not centralized by an entity, corporation, person or country, meaning it is not controlled by a single authority or managed in one place. This lack of centrality removes the fundamental flaw of bias. Bitcoin does not care what you look like, what culture you come from, your gender or your religious background.
Due to this, bitcoin is attractive to those typically disenfranchised from obtaining wealth, such as African Americans and other groups from diverse backgrounds. Adoption among this demographic is surging; a recent Harris Poll survey found that in the U.S., 30% of Black and 27% Hispanic investors own cryptocurrency, compared with just 17% of White investors. Even outside of the United States, in places like Nigeria, bitcoin trading volume and remittances are the highest on the continent being the key drivers to adoption.
Getting Off Zero Through Unorthodox Education
Typically, financial literacy is taught and passed down to each generation. I can speak for myself in saying discussions about money happened on two occasions: when you didn’t have any and when someone owed you some. I also had to learn about bitcoin under these odd circumstances, while trying to remove my fiat way of thinking. Many African Americans fall behind on educating themselves about bitcoin and the basics of financial literacy, but that, too, is changing.
Due to this lack of access, people within the African American community are using unorthodox methods to gain an education about Bitcoin and blockchain technology. Learning the complexity of Bitcoin is no walk in the park, even for those who are deemed tech savvy. In my opinion, books like “Bitcoin and Black America” by Isaiah Jackson, “Bitcoin and Black Powernomics” by Will Hobdy and “From Bars to Bitcoin” by Justin Rhedrick are great places to start learning about Bitcoin from the Black perspective. Social media applications like Clubhouse have the highest focus for African Americans seeking education and a network of like-minded individuals focused on crypto.
Clubs such as Black Bitcoin Billionaires, Crypto for Black Economic Empowerment and Crypto Church have attracted hundreds of thousands of members. A wide range of topics are discussed in this hybrid cross between a podcast and a call-in radio network, including getting your investment knowledge off zero where anyone from anywhere can ask questions or give advice on topics like Bitcoin.
Long-Term Digital Saving
In honor of the historic Black Tulsa, once the epicenter of Black wealth in America, the well-known actor and author Hill Harper has launched a fin-tech app called Black Wall Street — a center of Black business in the Greenwood district of Tulsa, Oklahoma, that was destroyed in a racial attack. Harper encourages all African American investors to buy bitcoin from the app for the long-term through dollar-cost averaging. Harper said, “We have to encourage Black ownership and that’s what we want to do on the platform. We’re starting with a digital wallet and the ability to start to learn financial literacy, create a community, and allow people to invest.”
The average Black family has $38,300 in their 401(k) account by the time they hit retirement. The average white family has a retirement average of $168,000 in their 401(k). This is why bitcoin should be viewed as a form of investment savings for people of color. Statistically, for many African Americans saving money is difficult or downright impossible. Many Americans have less than three months of savings in the event of an emergency.
Bitcoin, on the other hand, is non-confiscatable and has no barrier of entry. Bitcoin is a good savings technology when utilized from a long-term outlook. Traditionally, people in Black and Brown neighborhoods are scammed and sold snake oil schemes to gain wealth and save money, leaving them unbanked. Check cashers and payday loan businesses litter Black and Latinx areas across America. Over the years, that has led to a distrust of banks, lack of savings and debt. Bitcoin fixes the wedge in the wealth gap and is quickly becoming the Plan B to secure asset value for many African Americans.
Buying a whole bitcoin is quite expensive but buying fractional shares is not. You can start with an amount as low as $2. If you save $10 a week for 50 weeks equals $520, which can get you over a half-million satoshis at current bitcoin prices. That’s a good and cheap way to gain exposure to bitcoin and save at the same time. For many people of color, risk tolerance is low, so dollar-cost averaging allows them to endure the volatility of bitcoin price swings. Over the long term, bitcoin has performed at 200% over the last decade. The banks cannot guarantee to give its customers that type of return on savings, so we see a massive departure from banks to bitcoin.
Bitcoin is a treasury reserve asset that is unmatched, and I believe African Americans are waking up to the fact that Bitcoin adoption will allow them to catch up in the wealth race. The Lightning Network will make remittances very easy to transfer. One thing you cannot destroy is an idea, and bitcoin is proving it is better than gold, stocks, bonds, commercial real estate, equities, silver, the whole lot. I believe this form of cross-generational wealth is here to stay in the Black community and is truly just beginning to take hold as an idea of closing the wealth gap.
This is a guest post by Dawdu M. Amantanah. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
Based on Forbes, the median wealth of Black and Latino households might hit zero by 2053. Historically, Black Individuals lag behind on the wealth scale however the adoption of cryptocurrency, particularly Bitcoin, might enable a change in that narrative by means of schooling and dollar-cost averaging.
Investing in bitcoin for African Individuals has develop into a “what do I’ve to lose” situation. There’s now tons of information on the affect of wealth inequality and the way it impacts African Individuals which is downright surprising to say the least. The Black and Brown group’s wealth hole has widened by means of Jim Crow segregation, redlining, mass incarceration, excessive unemployment and lack of economic literacy. Bitcoin isn’t centralized by an entity, company, individual or nation, which means it’s not managed by a single authority or managed in a single place. This lack of centrality removes the basic flaw of bias. Bitcoin doesn’t care what you seem like, what tradition you come from, your gender or your spiritual background.
Because of this, bitcoin is engaging to these usually disenfranchised from acquiring wealth, corresponding to African Individuals and different teams from numerous backgrounds. Adoption amongst this demographic is surging; a current Harris Ballot survey discovered that within the U.S., 30% of Black and 27% Hispanic buyers personal cryptocurrency, in contrast with simply 17% of White buyers. Even exterior of america, in locations like Nigeria, bitcoin buying and selling quantity and remittances are the very best on the continent being the important thing drivers to adoption.
Getting Off Zero By means of Unorthodox Training
Sometimes, monetary literacy is taught and handed down to every technology. I can communicate for myself in saying discussions about cash occurred on two events: whenever you didn’t have any and when somebody owed you some. I additionally needed to study bitcoin beneath these odd circumstances, whereas attempting to take away my fiat mind-set. Many African Individuals fall behind on educating themselves about bitcoin and the fundamentals of economic literacy, however that, too, is altering.
Because of this lack of entry, folks inside the African American group are utilizing unorthodox strategies to achieve an schooling about Bitcoin and blockchain know-how. Studying the complexity of Bitcoin is not any stroll within the park, even for individuals who are deemed tech savvy. For my part, books like “Bitcoin and Black America” by Isaiah Jackson, “Bitcoin and Black Powernomics” by Will Hobdy and “From Bars to Bitcoin” by Justin Rhedrick are nice locations to begin studying about Bitcoin from the Black perspective. Social media purposes like Clubhouse have the very best focus for African Individuals in search of schooling and a community of like-minded people centered on crypto.
Golf equipment corresponding to Black Bitcoin Billionaires, Crypto for Black Financial Empowerment and Crypto Church have attracted a whole bunch of 1000’s of members. A variety of matters are mentioned on this hybrid cross between a podcast and a call-in radio community, together with getting your funding information off zero the place anybody from anyplace can ask questions or give recommendation on matters like Bitcoin.
Lengthy-Time period Digital Saving
In honor of the historic Black Tulsa, as soon as the epicenter of Black wealth in America, the well-known actor and creator Hill Harper has launched a fin-tech app known as Black Wall Avenue — a middle of Black enterprise within the Greenwood district of Tulsa, Oklahoma, that was destroyed in a racial assault. Harper encourages all African American buyers to purchase bitcoin from the app for the long-term by means of dollar-cost averaging. Harper mentioned, “Now we have to encourage Black possession and that’s what we wish to do on the platform. We’re beginning with a digital pockets and the power to begin to be taught monetary literacy, create a group, and permit folks to speculate.”
The common Black household has $38,300 of their 401(ok) account by the point they hit retirement. The common white household has a retirement common of $168,000 of their 401(ok). Because of this bitcoin needs to be considered as a type of funding financial savings for folks of coloration. Statistically, for a lot of African Individuals saving cash is troublesome or downright not possible. Many Individuals have lower than three months of financial savings within the occasion of an emergency.
Bitcoin, then again, is non-confiscatable and has no barrier of entry. Bitcoin is an effective financial savings know-how when utilized from a long-term outlook. Historically, folks in Black and Brown neighborhoods are scammed and offered snake oil schemes to achieve wealth and lower your expenses, leaving them unbanked. Verify cashers and payday mortgage companies litter Black and Latinx areas throughout America. Through the years, that has led to a mistrust of banks, lack of financial savings and debt. Bitcoin fixes the wedge within the wealth hole and is shortly turning into the Plan B to safe asset worth for a lot of African Individuals.
Shopping for a complete bitcoin is kind of costly however shopping for fractional shares isn’t. You can begin with an quantity as little as $2. When you save $10 per week for 50 weeks equals $520, which might get you over a half-million satoshis at present bitcoin costs. That’s an excellent and low cost strategy to achieve publicity to bitcoin and save on the identical time. For many individuals of coloration, danger tolerance is low, so dollar-cost averaging permits them to endure the volatility of bitcoin worth swings. Over the long run, bitcoin has carried out at 200% during the last decade. The banks can’t assure to present its clients that kind of return on financial savings, so we see an enormous departure from banks to bitcoin.
Bitcoin is a treasury reserve asset that’s unmatched, and I consider African Individuals are waking as much as the truth that Bitcoin adoption will enable them to catch up within the wealth race. The Lightning Community will make remittances very simple to switch. One factor you can’t destroy is an concept, and bitcoin is proving it’s higher than gold, shares, bonds, industrial actual property, equities, silver, the whole thing. I consider this type of cross-generational wealth is right here to remain within the Black group and is actually simply starting to take maintain as an concept of closing the wealth hole.
This can be a visitor publish by Dawdu M. Amantanah. Opinions expressed are completely their very own and don’t essentially replicate these of BTC, Inc. or Bitcoin Journal.