This is an opinion editorial by Nicholas Otieno, a freelance writer focused on fintech and crypto.
Bitcoin has received a lot of attention from investors, the media and regulatory authorities as its value has risen and its adoption has grown worldwide. However, relatively little is known about the black investors who have been attracted. Whether you buy bitcoin or not, you can learn important lessons from this black American and become a smarter investor in any field.
In the late 2010s, a significant number of black Americans began to research Bitcoin with enthusiasm. He sees the promise of blockchain technology, a distributed ledger that provides an immutable record of transactions. They watched the movement of the price of bitcoin reach a record high, which certainly attracted attention as well.
Many bitcoin investors began investing in cryptocurrencies during this period – a time that coincided with the distribution of the COVID-19 stimulus check in 2020. Millions of people who never had much to invest or save suddenly had money, and many choose. put it into bitcoin.
Crypto Bubble
After this period, where many black investors discovered bitcoin, the overall crypto market has started to shrink.
Black investors are among thousands of Americans who have witnessed cryptocurrency holdings disappear after the digital currency entered the winter market.
So far, the cryptocurrency has lost more than $2 trillion in value over the past year, which has seen bitcoin plunge from a high of $69,000 reached in November 2021 to a current price of around $20,000 per coin.
The crypto crash has hit black Americans as hard or harder than other demographic communities, in part because bitcoin has become so popular in that community. According to data collected by Harris Poll, 23% of black Americans own digital assets, while 11% of white Americans own such assets.
The fall of the crypto market is expensive and tragic, but it does not deter many in the Black community, because they have a strong desire to find financial autonomy.
Addressing Financial Inclusion
Bitcoin naturally has practical appeal to small dollar investors from historically marginalized communities who distrust traditional finance. For example, Black Americans can buy BTC on digital platforms without a credit check, a step that could prevent them from financial inclusion in other assets.
Many Black investors have invested their funds into bitcoin because they find it hard to build generational wealth in the traditional system. Ignored by investment managers and discriminated against by banks, many Black investors have turned to more sovereign opportunities.
This long history of investment discrimination explains why the world is now witnessing a demographic of interest and inclusivity in Bitcoin – because it is new, open and has fewer barriers to entry.
Another reason why people of color use Bitcoin at a higher rate than others is because the cryptocurrency offers a cheaper method of remittance than sending funds through a bank.
Life In A Bear Market
It is true that the cryptocurrency market can be a risky place due to its volatility. Profits are made and lost in minutes. But despite this, many black investors remain bullish on Bitcoin.
A good example of a successful black cryptocurrency investor can be found in 27-year-old Jefferson Noel. Noel got his first exposure to cryptocurrency in January 2019 when he accidentally invested $5 in bitcoin while using a payment platform called Cash App. In May 2020, the value of the accidental investment increased to $70. This inspired him and, as a result, he put another $20,000 from his savings into cryptocurrency. Recently, Jefferson said he is buying more altcoins despite the ongoing losses that have seen more than 20% of his cryptocurrency investments disappear this year. Clearly, Bitcoin is an eye-opener in terms of being a more active investor.
Another can be found in Charlene Fadirepo, a banker who used to work in the Federal Reserve inspector general’s office, who has become a convicted bitcoin holder.
“Last year, he and his wife bought $6,000 worth of (bitcoins),” Time reported. “No other investment has ever produced the kind of returns that Bitcoin has.”
In A Nutshell
Much can be learned from Black investors as they demonstrate that having the right mindset and resilience to overcome setbacks is key to successful Bitcoin investing. Those who want to make money through bitcoin investment must be willing to endure the investment through ups and downs and consider the fact that it can provide a form of financial security that is often denied to the underbanked. For many, this can be more expensive than quick results.
This is a guest post by Nicholas Otieno. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.