Crypto market collapse has hurt the black American community the most — report

LAGOS (CoinChapter.com) — Crypto investors from the African American communities have been hurt the most during the $2 trillion market wipeout witnessed since November 2021, reports the Financial Times.

Taylor Nicole Rogers, the market analyst at the Financial Times, noted that black Americans typically have less money. So, they are likelier to put whatever they have into cryptocurrency for get-rich-quickly promises.

“Black American families had historically been left out of the financial markets and the housing market. They wanted to get in early and invest big in crypto to make sure that didn’t happen again. Which obviously means that when crypto tanks all of a sudden they’re losing more money.”

Taylor Nicole Rogers said.

A Quarter Of Black Americans Own Cryptocurrencies

Moreover, in the same vein, another survey has correlated Rogers’s findings, disclosing that a quarter of black Americans own cryptocurrencies. This is against only 15% of white investors owning the digital currency.

According to Ariel Investments and Charles Schwab survey, black Americans are more than twice likely to purchase cryptocurrency as their first investment.

The study credited the attraction of building wealth and rigorous marketing for the high number of black investors in cryptocurrencies. Moreover, the dollar price of bitcoin rose by 9,300% in the five years to its peak in November.

Additionally, backing from prominent black individuals also increased the ethnic adoption of digital currency. Celebrities including Jay-Z, Snoop Dogg, Floyd Mayweather, Jamie Foxx, and Spike Lee, among others, have publicly promoted crypto to their followers.

Interestingly, Jay-Z recently partnered with former Twitter CEO Jack Dorsey to launch a “Bitcoin Academy.” The duo announced they would build the academy and literacy program in Brooklyn, where Jay-Z grew up.

Still interested

Meanwhile, the report also disclosed that despite registering the most loss due to the massive drop in the value of several digital assets, blacks in the United States are still willing to invest in cryptocurrency.

Rogers explained that black Americans are still willing to invest in crypto because of its financial freedom. Further, she indicated that blacks’ interest in crypto would persist because it helps close the wealth gap between blacks and whites in the U.S. Rogers said:

“The wealth gap in this country between black and white Americans is absolutely out of control and getting wider every single day. And cryptocurrency has been presented as a way to close that.”