Why the Black Community Should Invest in Cryptocurrency

An African proverb states, “To move forward, we must look backward.”

Black community systematic segregation created the inescapable financial trap, limiting access to wealth-building tools like quality education, banking, and housing. Websters’s dictionary defines power as the ability to bring about fulfilling one’s desires and needs. Before the Black community can strive for social and political power, we must strive for economic strength.

“Black labor was a wealth builder and therefore a power generating resource that dominant society greatly valued and manipulated.” — Dr. Claud Anderson.

Cryptocurrency and blockchain can be a great equalizer for wealth distribution within the Black community. Moreover, cryptocurrency has an inclusive nature; anyone can participate regardless of race, political or religious beliefs. There is unlimited potential for the Black community to capitalize on cryptocurrency and blockchain technology to create generational wealth.

Buy and HODL

The most common way to invest in a cryptocurrency project is to buy and hold (HODL),” a slang term meaning to hold on for dear life in the cryptocurrency community. However, before investing in any cryptocurrency, follow the Five-key qualities of a successful project while conducting intensive research.

A few guided questions before investing:

Hodlers invest for the long-term, limiting short-term price movement that can cause traders to sell early. To build wealth within the Black community, we must understand how to analyze undervalued assets and capitalize on HODLing for our future generations.

Smart Contracts

The Black community has always received the shorter end of the stick through subprime loans with higher interest rates and less favorable terms for banks to compensate for higher credit risk. The market crashed in 2008 because institutions were given loans to individuals that could not afford it. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller written directly into code. Learning how to write and implement a smart contract can be beneficial for the Black community by:

Staking for Passive Income

Bitcoin(BTC) was the first to implement a proof of work (POW), which rewards miners for confirming transaction blocks that hinders double-spending. However, POW requires a great deal of computing power to run the network. Proof of Stake(POS) was created as an alternative to fixing computing power costs by attributing mining power to the proportion of coins held by a miner.

“Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t… pays it.” — Albert Einstein.

Proof of Stake(POS) benefits :

Staking has all of the characteristics of a wealth-generating tool for the Black community. The only disadvantage of staking is your crypto will need to be available throughout your staking. Meaning, you cannot sell your cryptocurrency while receiving the same amount of returns. However, the advantages outweigh the disadvantages. Staking eliminates the need for expensive mining equipment and does not require intricate technical knowledge.

The Black community is known to politically vote as a block because of our loyalty to specific agendas. It is time for the Black community to collectively vote for cryptocurrency by investing our hard-earned money in HODLing established crypto projects, education in smart coding contracts, and reaping the benefits of compounding interest through staking. These items can be great incentives to mobilize our community to learn how decentralization can build economic empowerment tools.

This article is for informational purposes only; it should not be considered Financial or Legal Advice. Check out some additional articles on cryptocurrency at CryptoNoir Newsletter.

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