Cryptocurrencies are growing in popularity among LGBTQs and other minority groups2 min read
The use of cryptocurrencies as means of payment that circumvent the traditional financial system is gaining ground among minority groups in the United States.
According to data from Harris Poll shared by USA Today, 1 in 4 people who identify themselves as LGBTQ have invested in cryptocurrencies. This is almost double that of the US population as a whole, which has a 13% acceptance rate. The ratio is very similar among black Americans. About 23% have some investment in cryptocurrencies.
Cryptocurrencies are slightly less popular among Hispanics. About 17% of Hispanics living in the United States own cryptocurrencies. However, this number far exceeds the preferences of the white population, which registered only 11% of cryptoinvestors.
The United States is fading compared to other countries. For example, in Canada, 30% of the population is cryptoinvestors.
Minorities prefer to invest in cryptocurrencies
John Gerzema, CEO of Harris Poll, believes that much of this phenomenon can be explained by the fact that the financial world suffers from social discrimination and minority groups are turning to more inclusive and promising alternatives.
“Discrimination in investment has been around for a long time, which is why we are witnessing widespread interest and involvement in cryptocurrencies – because they are new, open and have fewer barriers to entry.”
But we are not just talking about a positive perception of cryptocurrencies. Tyrone Ross, CEO of Onramp Invest, says cryptocurrencies have increased their popularity among black millennials and the LGBTQ group due to the uncertain economic conditions in which many of these segments of society live:
“Loss of wages, loss of jobs, it was all part of my family’s experience,” and much of it came from traditional financial systems. The government has decided to support these large institutions rather than the average person. This signaled that this system was not for me, but the cryptocurrency provided access to a new system, more decentralized and one that could potentially benefit me and people like me in the long run. “
The situation is similar for the LGBTQ community. Yosef Bonaparte, associate professor of finance and director of external finance at the University of Colorado, explains that discrimination based on sexuality is a natural barrier that reduces a person’s chances of being tempted to invest their money in the stock market by 40%.
Another critical factor in the growth of cryptoinvestors in minority communities is the almost zero barrier to entry. Anyone can allocate a minimal portion of their resources to cryptocurrencies, many of these low-income individuals feel shy about seeking advice on investing in the larger amounts that other investment instruments usually require.
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