Dr. Armstrong hosts a “room” called “Wakeup with Bitcoin” at the audio social-media channel Clubhouse. Some mornings, listeners can hear her dog barking. Sitting in the office with your broker is a far cry.
Black on the “Wakeup with Bitcoin” clubhouse is part of the Bitcoin Billionaires Group, which has grown to 136,000 investors in about a year.
The crush of people flooding crypto has resulted in a huge information void, especially for individual investors. Whenever there is an uptrend in bitcoin, a new wave of buyers enters the market. A survey by the Crypto.com exchange estimated that there were 221 million crypto holders in June 2021, more than double the number in January.
Social media sites such as Reddit, TikTok, Instagram and Telegram have become popular platforms for obtaining information, but they are also full of misinformation and outright scams. It can be difficult to find objective guidance. New York City’s mayor-elect, Eric Adams, recently suggested that city schools teach classes in crypto.
Groups such as Black Bitcoin Billionaires try to help educate new investors, but they emphasize that the information being shared is not financial advice.
On Reddit, bitcoin conversations appear not only in crypto and investment threads, but also in sports, politics and gaming threads. Crypto-themed videos are popular on YouTube and TikTok. Facebook became so interested in crypto that it tried to create its own digital currency—unsuccessfully, so far.
The Black Bitcoin Billionaires Group was created by two bitcoin investors, Lamar Wilson and Isaiah Jackson, who wanted to help the Black community own bitcoin while it was still relatively new.
Mr. Wilson, a 41-year-old software developer from Lexington, Ky., equates bitcoin to the Internet in the early 1990s or other early technological developments.
“It’s not that they don’t have qualifications, they never get introduced,” said Mr. Wilson. “By the time it comes down to those marginalized groups, most of the value is gone,” he said.
Membership of the Black Bitcoin Billionaires group is extensive. The group has software developers, finance professionals, business owners, entrepreneurs, artists, students and teachers of all ages. Some are financially savvy, some understand very little about finance. Not all members are Black; A large percentage of the group is white. The common denominator is interest in bitcoin.
Crypto investors are largely responsible for educating themselves. The Financial Industry Regulatory Authority, or FINRA, warned investors to do their research on any companies offering crypto investments. He cautioned against claims made through email, cold calls or social media and asked to be wary of aggressive pitches or guaranteed returns.
The Federal Trade Commission outlined several signs of rapidly increasing fraud in the real world and on social media: one, promises of guaranteed returns, or free money; Two, the lack of details about the investment; And, three, any request for money in advance.
Dr. Armstrong is not a financial advisor or professional investor, and he does not get paid for his time. In her daily speech, she covers the steps to buy bitcoin, along with brief primers on the mechanics and history of the digital currency.
“We wanted to provide a place where, if you’re a person of color, you can come here and feel comfortable asking questions,” Dr. Armstrong said.
While bitcoin has appreciated significantly in its short history, it is a notoriously volatile asset that can collapse violently. She advises people she talks to to be cautious about how much they invest.
“It’s your discretionary income,” she said. “It’s not for your daughter’s braces next year. It’s not your mortgage amount.” Instead, she suggests investing in small amounts regularly with the goal of building something up over time.
“Many of us are looking at this as a generational wealth maker,” she said.
Marshall Johnson, a 54-year-old academic-television producer in Maryland, knew almost nothing about bitcoin when he first heard about it—even buying fractions of bitcoin was not possible. Because of this he stayed away from it. He tried watching YouTube videos and looked around for information, but that didn’t take him away.
He had found a way into Dr. Armstrong’s room last year. “They had people who cared, people who were interested in teaching and not just making money from you,” he said.
He may never be a bitcoin billionaire, but he has become a bitcoin buyer. What she learned in the room helped her develop her own shopping strategy. He also has an exit plan: to hold it until he has at least one full bitcoin.
“It would be an amazing goal,” he said.
This story has been published without modification to the text from a wire agency feed
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