Cryptocurrency Rises Among Black Americans and LGBTQ People
Cryptocurrency is increasingly popular among marginalized groups who feel rejected and abused by traditional financial institutions.
According to a USA Today / Harris poll conducted earlier this summer, among the LGBTQ community, 25% own cryptocurrencies, along with 23% of black Americans and 17% of Latin Americans. Only 11% of the white population owns a cryptocurrency.
The study also found that a significant portion of black Americans (43%) and Latin Americans (39%) believed the banking and lending industry was unfair in the way it treated them. Additionally, more than half of Black (58%), Latino (66%) and LGBTQ (59%) Americans surveyed say they don’t feel welcome at traditional financial institutions.
Interviewees describe traditional institutions as “not meant for people like me and believe cryptocurrency is a way to create and achieve wealth. Harris Poll CEO John Gerzema backed the sentiment.
“There has been a long history of discrimination in investments,” said Gerzema. United States today. “And maybe that’s why we’ve seen a broad demographic of interest and inclusiveness in crypto, because it’s new, open, and apparently has fewer barriers to entry.”
Since cryptocurrencies like Bitcoin don’t have a central body overseeing their operations, this sets them apart from stocks and bank accounts which are easier to track due to government and laws.
Now, some digital payment providers like Square are working to educate more marginalized groups about finance and cryptocurrency.
Although it is becoming more and more popular and may change the future of some, cryptocurrency has its problems. For starters, the value can vary wildly. In April, Bitcoin hit a high of $ 63,729 for a coin. However, today that value is now $ 50,000 and in June fell below $ 30,000.
Also, users can be victimized as there is no central body and cryptocurrency providers can tailor the situation to their advantage.
More than 600 users of the Binance cryptocurrency exchange in a dozen countries hope to use international arbitrage to recover their money after the site crashed on May 19. As a result, traders were unable to move their funds as the price of the cryptocurrency dropped significantly.
Binance only allows arbitrage through the Hong Kong International Arbitration Center. To get a hearing, they must first pay $ 65,000, and Binance’s terms of service state that people can only arbitrate individually.