The Lack of Bitcoin Use in Black Communities

BitcoinsBitcoin has changed the way digital transactions are made via the Internet, but unfortunately it seems that the Black community is not participating in the new trend. Writer Kyle Coward raised the discussion this week in an article posted on The entitled, ?Why Are So Few Black People Using Bitcoin?? In it, he provides a few theories on why this is so.

For starters, Coward reports that in a 2014 study conducted by the Massachusetts Division of Banks and the Conference of State Bank Supervisors, it was found that individuals in the African American community are less knowledgeable about Bitcoin when compared to Hispanics and whites.

Also, the path to Bitcoin use by minorities is riddled with security issues. In 2013, a leading Bitcoin exchange was hacked. Unlike paper currency, the threat of digital intrusion is always present when transactions are completed online. Another aspect that hinders movement forward is the volatility of Bitcoin. Its wild swings make it riskier than many assets and may not be the wisest choice for a Black population that currently has only 5 percent of wealth for every dollar that is held by whites.

While the path to achieving Bitcoin exposure in the minority population is a slow one, the same survey mentioned above also revealed that 24 percent of African-American individuals would be “at least somewhat likely” to make transactions using Bitcoin. This indicates that there is some hope that these communities will have the opportunity to take advantage of the benefits of using Bitcoin.

Read more at The Atlantic.