Crypto for Christmas: Tips on gifting cryptocurrency this holiday and beyond
Hill Harper, who owns The Black Wall Street digital wallet, helps theGrio break down what Black consumers should know about crypto
If you asked investors and tech entrepreneurs to name an ideal Christmas present, cryptocurrency is likely to be their response.
Rather than offering family members quick cash as a last-minute gift or easy gesture of affection, cryptocurrency offers a direct investment in generational wealth.
“When I wrote my book, The Wealth Cure 10 years ago, it was all about how do we cure the wealth gap. But technology wasn’t where it needed to be to scale the impact that we talked about,” Hill Harper, founder of The Black Wall Street digital wallet told theGrio. “It’s here now. And it’s strictly through the fact that we’re moving from an inflection point of physical fiat currency, which is physical money into digital currency and cryptocurrency.”
Harper’s Black Wall Street is the first Black-owned digital wallet, which also offers a financial literacy component to help users understand cryptocurrency. The main cryptocurrency utilized on the digital platform is Bitcoin. The aim of Harper’s wallet is to ensure that every user acquires and holds at least 0.01 bitcoin.
To build up to 0.01 bitcoin, users can purchase Satoshis, which are a smaller denomination of Bitcoin. For every 1,000,000 satoshis, a user holds 0.01 bitcoin.
“Now Bitcoin specifically, is what I call digital gold, it is a store of value. That’s why we as Black folks can understand it, start stacking Satoshis which are fractal shares of Bitcoin Satoshis,” Harper explained.
In addition to Harper, theGrio spoke with financial analysts, investors and traders to gather a solid baseline of must-know information about Bitcoin and other trending cryptocurrencies.
Here’s what you need to know.
Bitcoin is the favored cryptocurrency for beginners
“We’re talking about wealth, generational wealth, and wealth, preservation and building wealth,” Steve Venino, senior associate of 10T, an equity firm, told theGrio. “Bitcoin has kind of really proven itself to be a pristine form of collateral and a store of value.”
Cash does not value with interest but is deeply impacted by inflation
Investors compared cryptocurrency appreciation to the interest growth of a bank account. You can purchase cryptocurrency and then store it away in a digital wallet. Overtime, the value of the currency will increase as the currency trends in popularity and value.
Government bonds are the investment of older generations
With the purchase of a government bond, analysts warn that you’re just barely maintaining your principal and not really earning any actual interest. If you want to invest in government bonds, you’re getting 1%, if not a negative yield. However, with Bitcoin or a stable coin you can earn upwards of 8-9% on the investment. Not only are you owning the cryptocurrency itself as potential price appreciation, you can also get more yield than what most bonds pay. Additionally, cryptocurrencies can yield more interest than a savings account, or a checking account pays at the United States Bank.
Government regulations are not predicted to have significant impact on Bitcoin’s market volatility
One of the most appealing things about cryptocurrency is its global appeal. Analysts suggest if a crackdown in the United States occurs, a pullback with a ton of volatility is expected to yield an approximate 20% price decline, but the price will bounce back and the Bitcoin currency will survive. However, other less popular or established cryptocurrencies might not follow this trend.
More education tools
Podcasts like The Scoop by The Block and Around The Block by Coinbase offer easily digestible information on the latest cryptocurrency news and events.
Other investment options
Financial analysts recommended using EarlyBird to invest for loved ones outside of your immediate households. Like The Black Wall Street digital wallet, EarlyBird offers a financial literacy component.
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