MLK Day - Black Americans Early Adopters of Crypto
The great American Civil Rights Leader Dr. Martin Luther King Jr. proclaimed "Now is the time to make real the promises of democracy" in his famous "I Have a Dream" speech, delivered on August 28, 1963 on the steps of the Lincoln Memorial. Today, with the help of cryptocurrency, many black Americans are potentially realizing the "promises of democracy" at least in a financial sense.
According to the Federal Reserves most recent measurement from 2019 the average white family has a net worth of around $188K, which is eight times that of black families in the USA. Perhaps the gap can be shrunk by changes in behavior, specifically which assets are being focused on. A survey by the University of Chicago’s National Opinion Research Center in 2021 found that about 44% of all those who own crypto in the USA were people of color.
Black Americans are more aware and much more likely to invest in cryptocurrency than other races in the USA. This also applies to other blockchain items like non-fungible tokens. According to a 2021 Harris Poll, 37% of white Americans were aware of crypto while half of black Americans knew what crypto was. In terms of ownership, while 11% of white Americans owned crypto, adoption by minorities was higher with 17% of Hispanics and 23% of blacks Americans owning the digital currency and leading the way.
With NFTs the numbers are even more divergent with roughly 8% of white Americans having some ownership while15% of Hispanics and a full quarter (25%) of black Americans say they have purchased non-fungible tokens. There is a much higher belief among blacks that unconventional assets like NFTs and meme coins will be valuable in the long-term.
Last year the popular Cash App money transfer program hired MC MC Megan Thee Stallion who in an advertisement named “Bitcoin for Hotties” proclaimed “With my knowledge and your hustle, you’ll have your own empire in no time.” More and more black influencers such as performers and athletes are raising awareness of these alternative forms of financial assets.
Why are black Americans embracing crypto and other digital assets at a much faster rate than white Americans? It could well start with a mistrust of the government and a bad taste in the US dollar from a historical standpoint. In the early stages of the USA the federal government took much of the land from the natives who already occupied it and built wealth on the back of slaves brought over from Africa. In the countries mid 19th century, more millionaires got their riches from cotton than from any other source and that industry was heavily dependent on the workers who picked the fibers namely black slaves.
Take the government and regulations out of the process and black Americans are much more likely to partake in the financial process lead by Bitcoin and other altcoins.
"It is obvious today that America has defaulted on this promissory note insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked insufficient funds," Dr. Martin added in his infamous speech. Perhaps black Americans are no longer waiting for America to rewrite that "bad check" and are now taking things into their own hands using decentralized monetary systems and currency to rewrite their own future legacies.
Crypto and other digital assets can help level the playing field in America, something that is long overdue. For the American clergyman, activist, and the American Civil Rights Movement Leader born on January 15, 1929 in Atlanta, his dream didn't include this new method for minorities to increase their standard of living but it can be part of black Americans dreams moving forward.
Thank you Dr. King for your impact on not just black Americans but all Americans and those around the world. Your dreams and legacy will live on and we are all forever grateful.