Most millionaires are interested in buying cryptocurrency
About a quarter are on the fence around the world, but most millionaires are very interested.
The Capgemini World Wealth Report 2018, a survey of high net-worth individuals (HNIs) around the world, came away with some interesting findings. Among them was that the majority of HNIs are at least somewhat interested in owning cryptocurrency, but that their current wealth managers aren't necessarily delivering.
The amount of interest varied widely around the world and by age, but there was a strong undertow of interest everywhere.
There was strong interest in cryptocurrencies, with almost 60% saying they were at least somewhat interested in crypto investments. About 40% of those interested cited investment returns as the primary reason for their interest, while 20% said they were interested in it as an alternative store of value.
In Latin America and South East Asia, excluding Japan, interest was almost universal, contributing greatly to the overall wide interest. Other regions were much less interested.
Japan might be an unusual outlier. There's little interest in cryptocurrencies among the country's richest people, but the country as a whole is one of the countries most involved in cryptocurrency in the world. This suggests that it might be experiencing a crypto crunch similar to South Korea, where early adoption, a dense and hyperconnected society, untenable housing prices and extreme competition for well-paying work have seen cryptocurrency take off in the middle class and under, while remaining relatively unpopular among those with enough capital to make big returns from safer investments like real estate.
But in Latin America and other parts of Asia, the need for decentralised alternative assets might be a major driver.
It's interesting to note that the proportion who are on the fence is extremely similar in all areas, while those who are entirely uninterested and very interested swings strongly by location. Cryptocurrency might be volatile, but it's very consistently polarising.
Unsurprisingly, younger HNIs were more likely to be interested in cryptocurrencies. Over 71% of younger HNIs said it was very important that they receive cryptocurrency information from their wealth management firms, while only 13% of HNIs aged 60 and over said the same.
Capgemini attributes this to different life stages, with the younger crowd being more interested in accumulating with higher risk investments and the older crowd being more interested in playing it safe.
One of the most interesting non-cryptocurrency findings was that, after six consecutive years of gains, the total wealth of high net-worth individuals topped $70 trillion for the first time. 2018 has been a banger thus far with average returns up by over 27% compared to last year, driven largely by immense returns from equities investments. As always, the best way to make a lot of money is to start off with a lot of money, and then just pay someone else to invest it for you.
Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VET, XLM, BTC and NANO.
- Bitcoin price lags while regulators raise fears and banks grapple
- Bitcoin price sees volatility around $37,000 with Pantera Capital projecting $115,000
- Ethereum price: Upswing may be on the cards as ETH continues leaving exchanges
- Bitcoin falls 10% in weekend trade as alts run
- Ethereum price: Upward surge noted but fears of near-term volatility continue to persist