With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today .
Why Americans haven't been convinced on cryptocurrency
Listen
• 4:10
STEVE INSKEEP, HOST:
It's MORNING EDITION from NPR News. I'm Steve Inskeep.
LEILA FADEL, HOST:
And I'm Leila Fadel. A recent Pew Research survey found that despite a high-profile ad blitz, just 16% of Americans say they've invested in, traded or used cryptocurrency. Among those who invested, nearly half say they did worse than they expected. The crypto market has rebounded from a, quote, "crypto winter" - basically, a bear market - up from a low of $100 billion to about $1 trillion now. But why have some people invested and others have not? Joining us is Cleve Mesidor. She's the executive director of the nonprofit Blockchain Foundation and author of "THE CLEVOLUTION: My Quest For Justice In Politics & Crypto." Good morning.
Support for LAist comes from
CLEVE MESIDOR: Good morning. Thank you for having me on.
FADEL: Thank you so much for being here. So 16% of American adults say they've invested, traded or used crypto. What's keeping Americans from investing more in cryptocurrency?
MESIDOR: Well, let's face it. If the traditional financial system has worked for you, if you've benefited from traditional markets, you are probably cool to crypto. That's why we've seen Black and Latino communities lead adoption. But the blitz that occurred, right - the Super Bowl ads, all of the media - it happened around the time that a recession was looming. Traditional markets were going into a bear market. So I think it's just timing. I think, you know, every American right now, regardless of what their portfolio includes, their portfolio does not look good. They're not happy. So it's not crypto. Crypto is not happening in isolation.
FADEL: Well, let's talk about what you just mentioned. You said if you're happy with traditional investments, you're not going to want it to go towards crypto. And you mention this outsized number of Latino, Black adults, Asian adults that are investing. Why do you think that is? Why are these communities moving quicker than white communities?
MESIDOR: Yes, because those who have been traditionally locked out of the traditional financial system - and we're talking beyond the unbanked, right? We're talking about Black and Latino professionals, Black and Latino businesses...
FADEL: Right.
MESIDOR: ...You know, Black and Latino, Asian nonprofits, right? Those who have been locked out all along the spectrum - I'm a Gen Xer. I'm a middle-class professional. Wealth managers do not treat me the same way. When you look at the PPP loan program that was supposed to be for minority businesses, it primarily went to wealthy businesses and hedge funds. So a large segment of the American population, regardless of socioeconomic status, have been left out of traditional financial systems and also have been operating in an alternative financial system. We saw fintechs grow because companies recognize there were people operating outside of traditional banks. Cryptocurrency is just the next iteration of that.
Support for LAist comes from
FADEL: I mean, the perception is, is that crypto is much more volatile than traditional markets. Is that the case?
MESIDOR: Again, depending on your relationship with money, depending on your relationship with traditional finance. As a Black woman who has a master's degree, who's middle class, the traditional financial markets is riskier to me than cryptocurrency is. I have never been able to fully participate. So it depends on your vantage point. That's why you see Black, Latino, Asian communities are leading adoption. And that's not just in the U.S., that's happening abroad in Latin America and the continent of Africa and India. Those who have been locked out globally are gravitating towards this new strategy, this new approach, because it looks a lot like the ways we've operated alternatively, DeFi - you know, decentralized, autonomous organization. You're going to continue to see communities of color lead adoption of cryptocurrency.
FADEL: Cleve Mesidor is the executive director of the nonprofit Blockchain Foundation. Thank you so much for your time.
MESIDOR: Thank you. Transcript provided by NPR, Copyright NPR.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The City Council will vote Tuesday on a proposal to study raising the pay for construction workers on apartments with at least 10 units and up to 85 feet high. -
The study found recipients spent nearly all the money on basic needs like food and transportation, not drugs or alcohol. -
Kevin Lee's Tokyo Noir has become one of the top spots for craft-inspired cocktails. -
A tort claim obtained by LAist via a public records request alleges the Anaheim procurement department lacks basic contracting procedures and oversight. -
Flauta, taquito, tacos dorados? Whatever they’re called, they’re golden, crispy and delicious. -
If California redistricts, the conservative beach town that banned LGBTQ Pride flags on city property would get a gay, progressive Democrat in Congress.
Best of LAist