Young Black Americans Dominate the Cryptocurrency Market

When reviewing the current state of the cryptocurrency market, Dr. Tonya Evans couldn’t help but recall that home banks gave away the then fledgling assets in 2014.

“When I think back to 2013 or 2014, the second kind of big crypto was coming up, and banks were really pushing back on the discussions around cryptocurrency regulation back then,” said Evans, a law professor and founder and CEO of Advantage. Evans.

“The big banks feared [cryptocurrency] would become more legitimate. Back then, banks didn’t have a customer service problem, but now they have one, and they realized they were going to start losing customers if they didn’t change,” Evans insisted.

She noted that banks, especially Deutsche Bank and Bank of America, have started to pay close attention to the cryptocurrency market.

“With Bitcoin and Ethereum in the lead, the cryptocurrency market is booming and growing,” Evans said.

She called cryptocurrency an “emerging and rapidly changing asset class.”

According to Terri Bradford, who researched black cryptocurrency ownership for the Federal Reserve Bank of Kansas City, cryptocurrency has grown in popularity among African-American consumers due to the historical background and forward-looking views of younger customers.

“Surveys show that black consumers are more likely than white consumers to own cryptocurrencies,” said Bradford, who authored the research paper “The Cryptic Nature of Black Consumer Cryptocurrency Ownership.” .

Bradford noted a 2021 Pew Research Center survey that found 18% of black adults had invested, traded or used cryptocurrency, compared to 13% of white adults.

“This difference between black and white consumer cryptocurrency ownership stands in stark contrast to other traditional assets,” Bradford asserted.

According to the Federal Reserve Board of Governors’ 2019 Consumer Finances Survey, 61% of white households held equity investments, compared to 34% of black households, a margin of nearly two to one.

“Unlike white consumers, black consumers are, in fact, more likely to own cryptocurrencies than assets such as stocks and mutual funds,” Bradford wrote.

“Leveraging the same technology is blockchain,” Bradford explained. “Crypto is a digital currency offered on Blockchain while NFTs and the like are different ways to leverage this currency.”

She continued, “Younger people are leveraging crypto, as we see in research, 50% of black crypto consumers are millennials and younger, and when you think about this constituent being digital native where it spends a lot of time, so we see why this has a big influence on cryptocurrency adoption.

Click here for more from Dr. Evans and Bradford on Black America and Cryptocurrency on the National Newspaper Publishers Association’s Let It Be Known morning news program.

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