According to a recent report on the wealthiest individuals in the crypto world, there are currently only six billionaires who have amassed their fortunes through bitcoin. This revelation comes amidst the backdrop of a global crypto landscape where hundreds of millions of people hold some form of digital currency, be it bitcoin or one of the many alternatives.
To be precise, the Crypto Wealth Report released by Henley & Partners indicates that approximately 425 million individuals are actively engaged in cryptocurrency. While the crypto market may not be experiencing the explosive growth it once did, it continues to attract a wide range of investors. For instance, a recent study conducted by the CFA Institute and Financial Industry Regulatory Authority’s Investor Education Foundation revealed that over half of Generation Z individuals (aged 18 to 25) have invested in cryptocurrencies.
Nevertheless, despite its popularity, a Pew Research survey conducted in April found that 75% of Americans are uncertain about the safety and reliability of investing in, trading, or using cryptocurrencies. Moreover, 45% of those surveyed expressed disappointment with their crypto investments, with only 15% reporting that their investments had exceeded their expectations.
However, there are exceptions to this trend, with some individuals achieving remarkable success in the crypto sphere, amassing fortunes worth millions or even billions of U.S. dollars, as reported by Henley & Partners. According to their report, 88,200 people hold crypto assets valued at a minimum of $1 million, constituting less than 1% of the total crypto user base. Of these, approximately 40,500 have chosen to invest in bitcoin, representing nearly 46% of this exclusive group.
A significantly smaller number of individuals fall into the category of “centi-millionaires,” with crypto holdings exceeding $100 million. There are only 182 such investors, and of them, 78 are primarily focused on bitcoin.
Remarkably, a mere 22 individuals boast crypto holdings surpassing the $1 billion mark. Of these, only six have chosen bitcoin as their preferred investment, a proportion significantly lower than that observed among crypto millionaires and centi-millionaires.
For context, the total value of the crypto market, at the time of this report, stood at $1.18 trillion.
In addition to these findings, Henley & Partners introduced a Crypto Adoption Index as part of their report. This index considers various factors such as public crypto adoption, regulatory environment, taxation policies, infrastructure, innovation, and economic factors related to cryptocurrency use. Its purpose is to guide crypto investors in identifying the most attractive investment migration programs.
Singapore emerged as the leader in the overall index, followed by Switzerland in second place and the United Arab Emirates in third. The United States and the United Kingdom occupied fifth and seventh places, respectively, in this ranking.
Singapore and the UAE received top scores for their crypto-friendly tax policies, whereas the U.S. and the UK lagged behind in this regard and dropped out of the top 10. However, both the U.S. and the UK scored high in terms of public adoption and interest, ranking third and fourth, respectively. The UAE and Singapore claimed the top spots in this category.
Furthermore, the U.S. led the table for infrastructure adoption, considering factors like the prevalence of crypto ATMs, the existence of digital asset exchanges, and local banks’ integration of cryptocurrencies. The UK excelled in the innovation and technology category.
Despite the growing popularity of crypto investments, particularly during the COVID-19 pandemic, caution is advised due to the asset’s inherent volatility and the lack of comprehensive regulation in many countries. Users and their investments may remain vulnerable, as demonstrated by the collapse of the crypto exchange FTX last year.
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