Editor’s note: Tonantzin Carmona Is It is David M. Rubenstein Fellow The Brookings Institution. His Recent Research has been done on potential risks and drawbacks of cryptocurrencies, as well as its effects on human health. Black Latino communities. The These My opinions are mine. Read CNN has more opinions
Not long ago, cryptocurrency was presented as a means of generating wealth. For many black and Latino investors, however, it has been anything but.
Famous individuals and venture capitalists alike had proclaimed that digital currencies could be the answer to closing the generational wealth gap between black and white Americans. But this has not been the case.
FTX, a cryptocurrency exchange, is a prime example of the volatility of digital currencies. It is not just large financial holdings that have been destroyed, but also smaller ones.
The consequences of the cryptocurrency market crash have been even more devastating for people of color, who are more likely to invest in digital currencies according to a Charles Schwab study and a Pew Research study.
African-Americans have been disproportionately affected by the fall of the cryptocurrency market due to their higher
The media coverage and celebrity endorsements of cryptocurrencies made them more credible and safer to invest in. But for many African-Americans, the promise of wealth creation through cryptocurrency has not been fulfilled. Despite the desire to become wealthy, people of color are still excluded from the financial sector. High-fee Bitcoin ATMs can be found in low-income areas, but these are not the solutions for achieving financial security. Decades of discriminatory practices have made it difficult for people of color to accumulate wealth, and the Black Blockchain Summit is helping to bridge the gap.