Presently, the ultra-rich people worldwide are investing their money in the cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, Ripple, and others before knowing what cryptocurrency really is.
As per the Wealth Report of Knight Frank, around 21 percent of private bankers and wealth advisors that responded claim the rich customers added the cryptocurrency investments in the year 2017.
This is not the only surprising fact. In the past year, the cryptocurrency’s total market was $17.7 billion on 1st January and it raised to around $615.6 billion by 30th December 2017. Since, most of the people don’t have million and billion dollars to spend on cryptocurrencies, so it is quite easy to predict that major investors are ultra-rich people.
Although, as per the Nicholas Holt (Head of Research for Asia Pacific, Knight Frank), many clients don’t know about the digital currency that what this is and how it works. He told this to CNBC.
During the interview, when he is asked about the blockchain understanding and about the misunderstanding regarding blockchain. Though people are favoring the investment in cryptocurrencies, possibly they don’t have a complete understanding of them that how they can affect their finances.
Crypto Dreams and Champagne Wishes
When these ultra-rich digital currency investors don’t exactly know about the cryptocurrency and blockchain technology, then they are basically risking on this widespread unregulated market. This market might account for dramatic sell-off that took happened in the past two months this year.
On 7th January, the cryptocurrency market capitalization was $827.6 billion. Thereafter, on 6 February, the cryptocurrency total market capitalization amount changed to $279 billion. Yet again, as most of the people don't have enough budget to invest in the cryptocurrency market, so it is assumed that ultra-rich investors can only invest in the Crypto market.
Moreover, the rich people still prefer spending their money in traditional bonds and stocks as compared to cryptocurrency. This is what explained in the recent Wealth Report. Continuing the discussion, Nicholas Holt explained that the equities did a great job last year. Spending in properties is still a major interest of rich individuals, accounting a portfolio of 50%.
Thus, it seems that the Crypto market is quite a playground for the richest people to try their luck in order and get richest.