February is Black History Month, and it is worth noting that cryptocurrencies and blockchain technology have already had a huge impact on African American society.
Opinion polls show that colored people keep cryptocurrencies at a consistently higher level than white people, while anecdotal evidence suggests that cryptocurrencies have also unleashed a wave of innovation and entrepreneurial energy in black society – from a new New York City mayor who turned his first salary in foreign currency. Crypto to Basketball star Kevin Durant has launched a new dedicated acquisition company to focus on cryptocurrency and blockchain.
And all this can only be a scratch on the surface. “Blockchain has the potential to be a beacon of light in the history of black economic empowerment,” Marco Lindsey, assistant director of diversity, justice and inclusion at UC Berkeley’s Haas School of Business, told Cointelegraph.
University of Kansas professor and historian Nishani Frazier told the Cointelegraph:
“They can allow the black society to rise in the philosophical sense of black empowerment.”
These “strong opportunities,” as Fraser put it, are impressive – and not just in the United States. In a global context, cryptocurrencies are still, at least in part, associated with people who are denied participation in ordinary economic life, often for the first time.
Banking services for those who do not deal with banks
After all, it is sometimes forgotten that 1.7 billion people around the world are still without a bank, do not have access to traditional financial systems or do not have access to traditional financial systems, Cliff Messidor, public adviser to the Blockchain Association, told Cointelegraph . . For this group, who sometimes live in countries with high inflation and distrust of local and central banks, cryptocurrency represents “economic authority and an opportunity for economic freedom.”
Lindsey agrees that cryptocurrencies and blockchain technology “provide greater access to an often overlooked population than traditional markets.” This allows “anyone with an internet connection and some investment capital” to participate in a dynamically evolving technology landscape, including opportunities for seed investments.
It is natural to celebrate these events, especially during Black History Month, but in the same way “the other side” can not be ignored, said Frazier. “As much as I love cryptocurrencies, being black, I can not live in a utopian bubble and say” Cryptocurrency: hooray! Equality! “It is very hard”.
Technology can be opaque even to those with a technical background, and cryptocurrency is still a very volatile investment. Hackers and fraudsters also fill the coverage of cryptocurrencies. The black economic experience in America is full of exploitation.
Fraser claims that insurance companies many years ago did not insure blacks, especially in the southern United States. Some large companies gradually began to offer “pension insurance”, where a person could “pay a little at a time” for a policy, such as funeral insurance.
But “these companies were notorious for taking your money and disappearing,” Frazier recalls. “They are abusing the black society.” She means to say that even in these most enlightened times; Cryptography is still dangerous; People can still be injured; You can not ignore the negative side of things.
Others, such as New School economist Darek Hamilton, point out that Bitcoin (BTC) is a high-risk, high-yield option. “After all, this is a casino,” he told Time magazine.
Lindsey agreed with the risk and added that vigilance would be necessary to maintain inclusion going forward. A further education process is needed, including a focus on individuals and small businesses from underserved communities. Otherwise, “the industry risks recreating the differences we see in more traditional sectors”.
“more diversified investors”
As mentioned, the opinion polls reinforce the idea that cryptocurrencies resonate with people who for various reasons have been excluded from the ordinary economic system. A Harris survey last year found that 23% of African Americans own crypto, for example, compared to 11% of white Americans.
According to researchers at the University of Chicago’s National Opinion Research Center (NORC), “The average cryptocurrency trader is under 40 (median age 38) and has no college education (55%). Two-fifths of cryptocurrency traders are non-white (44 percent), and “41 percent are women. More than a third (35 percent) have a household income of less than $ 60,000 a year.”