whenever im surrounded by white people in social situations and they say nigger i get uncomfortable and embarrassed for them.

That's because you're decidedly on Team Black despite your skin color.

I don't think I've ever said it out loud...I have never really had a reason to, sometimes when white people say it, it feels like "look at how edgy I am"...sometimes it is funny tho, it all depends on the context, same as any word...no word by itself is a 'bad' word.

If it isn't said with racist intentions then it isn't racist, and the word nigger is no worse than any derogatory term for any minority.

Key words "when around all white people".

lulz