This is an opinion editorial by Nicholas Otieno, a freelance writer focused on fintech and crypto.
Bitcoin has received increasing attention from investors, the media, and regulatory authorities as its price increases and its adoption develops around the world. However, relatively little is known about the black investors who have been drawn to it. Whether you’re buying bitcoin or not, you can learn important lessons from these black Americans and become a smarter investor in any field.
In the late 2010s, a significant number of black Americans started enthusiastically researching Bitcoin. They saw the promise of its blockchain technology, a distributed ledger that provides an immutable record of transactions. They watched bitcoin price move reaching all-time highs, which no doubt appealed to them as well.
Many bitcoin investors began investing in cryptocurrency during that period, a time that later coincided with the distribution of COVID-19 stimulus checks in 2020. Millions of people who had never had much to invest or save suddenly had cash on hand, and many chose to put them in bitcoin.
The crypto bubble
After this period, in which many black investors found bitcoin, the crypto market in general began to shrink.
Black investors were among the thousands of Americans who saw their cryptocurrency holdings disappear after these digital currencies entered a winter market.
So far, Cryptocurrencies have lost more than $2 trillion in value over the last year.which has seen Bitcoin fall from highs of $69,000 reached in November 2021 to the current price of around $20,000 per coin.
The cryptocurrency crash hit black Americans as much or more than any other demographic community, in part because Bitcoin had become so popular in that community. According to data collected by harris poll23% of black Americans own digital assets, while 11% of white Americans own such assets.
The fall of the crypto market has been costly and tragic, but that has not deterred many within the black community, as they have a great desire to discover financial autonomy.
Addressing financial inclusion
Bitcoin naturally has practical appeal for small investors from historically underserved communities who are wary of traditional finance. For example, African Americans can buy BTC on digital platforms without a credit check, a step that may prevent them from financial inclusion in other assets.
Many black investors have invested funds in bitcoin because they found it difficult to build generational wealth in the traditional system. Overlooked by investment managers and discriminated against by banksmany black investors have turned to more sovereign opportunities.
This long history of discrimination around investments explains why the world is now witnessing a broad demographic of interest and inclusion in Bitcoin, because it is new, open, and has fewer barriers to entry.
Another reason people of color are adopting Bitcoin at a higher rate than others is probably because the cryptocurrency offers a cheaper method of remittance than sending funds through banks.
Surviving 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 a matter of minutes. But despite this, many black investors have remained bullish on Bitcoin.
A good example of a successful black cryptocurrency investor can be found in Jefferson Noel, a 27-year-old. Christmas won his first exposure to cryptocurrency in January 2019 when he accidentally invested $5 in bitcoin while using a payment platform called Cash App. By May 2020, the value of his unintentional investment increased to $70. This inspired him, and as a result, he invested another $20,000 of his savings in cryptocurrency. Jefferson recently said that he is buying more altcoins despite persistent losses that have seen more than 20% of his cryptocurrency investment wiped out this year. Clearly, Bitcoin opened his eyes to become a more active investor.
Another can be found at Charlene Fadirepoa banker who used to work in the office of the inspector general of the Federal Reserve, who has become a convicted bitcoin holder.
“Last year, she and her husband bought $6,000 (in bitcoins),” Hour informed. “No investment has ever generated the kind of return for them that Bitcoin has.”
In one word
Much can be learned from black investors as they show that having the right mindset and resilience to deal with setbacks is the key to successful Bitcoin investing. Those who want to make money through investing in bitcoin must be willing to stick with their investments through the ups and downs and consider the fact that it can provide a form of financial security that is often off-limits to the unbanked. . For many, this can be far more valuable than any quick win.
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.
