Most millionaires are interested in buying cryptocurrency

Posted: 19 June 2018 7:25 pm
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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.

Key findings

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.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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