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The World’s Ultra-Rich Are Increasing Their Cryptocurrency Investments

Cryptocurrency InvestmentAn increasing number of the world’s super-rich are investing in digital currencies, according to the Wealth Report for 2018 of Knight Frank.

Over everything else, however, the uber-wealthy still prefer to invest in stocks and property, the report also showed.

The Wealth Report is a yearly poll of wealth advisers and private bankers conducted by Knight Frank – a  real estate company based in the United Kingdom with over 400 offices in 60 countries worldwide.

Poll Results

A Market Watch article said the Wealth Report showed that “21 percent of respondents revealing that clients had increased their investments in cryptocurrencies in 2017.”

The survey was “based on responses from more than 500 private bankers and wealth advisers who collectively represent about 50,000 people with a combined wealth of more than $3 trillion.”

Breakdown by Geographical Region

A breakdown by geographical area revealed big variations on how the world’s super-rich dealt with virtual currencies.

Just 5% more Asia’s ultra-wealthy increased their exposure to cryptocurrencies than those decreasing their exposure,” Market Watch noted.

But in Latin America, “33% more uber-rich persons in that region increased their exposure to cryptocurrencies than decreased it.”

Here is the difference in percentage between survey respondents reporting an increase in exposure to cryptocurrencies and those reporting a decrease in 2017.

  • Latin America – 33%
  • Russia and CIS countries – 27%
  • Africa – 24%
  • North America – 20%
  • Middle East – 7%
  • Australasia – 6%
  • Europe – 6%
  • Asia – 5%

Market Watch noted that countries in Asia took the “sharpest stands on cryptocurrencies.”

The site recalled that at the end of last year, the South Korean government recommended measures concerning cryptocurrency trading, including imposing a tax on the activity.

There were also reports suggesting that South Korea was thinking of banning virtual currency trading.

At one point at the end of 2017, South Korea accounted for as much as a quarter of all global bitcoin trading activity,” Market Watch added.

China, on the other hand, barred companies and individuals from raising funds via initial coin offering while several governments have warned that virtual money trading lacked security.

Preference for Stocks and Property Remains

In spite of the growing popularity of cryptocurrencies and interest in investing on digital money, the Wealth Report showed that the super rich still favor stocks and property.

Sixty-two percent of the respondents said their clients had increased their exposure to equities in 2017, while 56% said clients increased their exposure to property.

The percentages of preference for other investments are as follows:

  • Cash – 46%
  • Private Equity – 45%
  • Alternative Investments – 38%
  • Bonds – 30%
  • Gold – 25%

Meanwhile, Tom Lee, who is a bitcoin bull, foresees that cryptocurrency will reach the $125,000 mark by 2022 while Tyler Winklevoss believes that Bitcoin price would be at $320,000 and that those who don’t see the cost of Bitcoin reaching that high “lack imagination.”

Tyler and his twin brother Cameron are Bitcoin billionaires.

What’s Next?

Knight Frank’s 2018 Wealth Report showed that a growing number of ultra-rich people are investing in cryptocurrencies. However, many of them still opt to invest in stocks and property.

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