Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™.
President Donald Trump, who was once a cryptocurrency skeptic, has now yielded to many of the industry’s demands, such as easing federal regulations and oversight. From appointing cryptocurrency advocate and former Securities and Exchange Commissioner Paul Atkins to reprise his old role, to launching his own meme coin, Trump has chosen to embrace cryptocurrency.
A few years ago, cryptocurrency was touted as the new form of currency. We wouldn’t be using archaic financial currency and stick to this revolutionized way of transactions. Although some people have made a lot of money off of crypto, its intended use as a decentralized banking system hasn’t been realized. Cryptocurrency is still very new, so new that engaging in it feels comparable to gambling.
Trump lifting regulations to give cryptocurrency his blessing bodes well for the industry. A day after announcing Paul Atkins as his pick, the price of Bitcoin soared to $100,000 for the first time, a sign that the crypto industry was finally being legitimatized. However, while the Trump administration has branded itself as the face of the crypto industry, its reliance on meme coins to make a quick buck also delegitimizes its cause. Ethically and legally, Trump and First Lady Melania Trump’s meme coins raise concerns for the highest office of the land. Leaders in crypto have also decried the launch of the meme coins and referred to them as a mockery of the industry.
According to the BBC, Dan Hughes from the crypto firm Radix believes that this will undermine the industry, stating, “This pattern of celebrity-driven token launches, particularly from political figures, potentially marks a concerning trend in crypto markets where influence and liquidity manipulation could overshadow fundamental value creation.”
However, Trump isn’t the only high-profile figure looking to enrich himself through crypto. Wealthy Black executives and moguls have also embraced and pushed crypto within Black communities. Crypto has been billed as a potential pathway for Black people to build generational wealth outside the traditional financial system. There is a general distrust of the conventional financial system, but even more distrust surrounds the crypto industry. Since 2020, the crypto industry and its investors have told the story of untapped potential riches for those who invest in the risky, unregulated financial system, especially for the Black population. Black people have been bombarded with marketing and ads featuring celebrities like Spike Lee, Kendrick Lamar, and LeBron James. Jay-Z and former Twitter CEO Jack Dorsey collaborated to create The Bitcoin Academy, a program for residents of Marcy Houses in Brooklyn to learn how to invest in crypto and generate Black generational wealth. The Bitcoin Academy faced criticism from residents who viewed the program as a scam. Investing in crypto involves copious amounts of money that most residents wouldn’t waste on something as frivolous as crypto. Even if it is possible to see a return on their investment, anyone with an extra thousand dollars to spare will most likely use that money for food, housing repairs, or bills rather than an unstable currency.
While several Black investors are investing at higher rates than their white counterparts, for middle and lower-class Black Americans, investing in cryptocurrency doesn’t guarantee any specified security or wealth.
Cryptocurrency has yet to be fully integrated into mainstream use and is often viewed as a passing fad, much like the artificial intelligence industry. Both sectors’ perceived value is largely determined by the level of investment they attract, reflecting their speculative nature. For instance, the value of coins ebbs and flows. Although crypto’s value has risen in recent years, anything can lead to a sharp decline. Similar to the stock market, businesses and politics can affect crypto’s value. Black consumers are weary of investing money in places that can’t guarantee a significant return. But that is the nature of investing money. There is always going to be a large risk involved.
But as Black Americans continue to experience a rise in the cost of living, the cost of investing becomes a frivolous act. It’s true that our current system doesn’t benefit people of color, and it surely doesn’t benefit the working class. Instead of creating alternate systems that are high-risk and low-reward, Black investors and leaders should assist their community by developing ways to solve the problems within the system we’re already involved in. While I don’t know what exactly that may entail, encouraging others to put their life savings into the current fad won’t build Black generational wealth either.
