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Cryptocurrency Update: According To A Recent Study, Cryptocurrency Attracts More Rich Folks

Although 2018 was a difficult year for cryptocurrency, a recent survey by financial advisory company deVere Group revealed that 82% of fortunate clients have thought about investing in digital assets like Bitcoin [BTC] in 2022.

The survey outcomes, which were made public on January 30, revealed that eight out of ten of the firm’s high net worth (HNW) clients who had between $1.2 million and $6.1 million in investable assets had done so the year before.

Nigel Green, CEO and founder of deVere Group, claims that despite the study group being “typically more conservative,” interest in Bitcoin was sparked by its important features of being “digital, global, borderless, decentralized, and tamper-proof.” According to studies, millionaire investors’ interest in cryptocurrency investments has risen.

What else is included in the report?

According to the company’s 2019 study, 68% of high-net-worth people globally have already invested in cryptocurrencies or plan to do so by the end of 2022. In addition, a 2020 study by deVere discovered that 73% of the 700 HNW people surveyed already own cryptocurrencies or plan to do so before the end of 2022.

Because reputable financial institutions like Fidelity, BlackRock, and JPMorgan are showing an increased interest in offering clients crypto services, Green sees this as a positive development for the industry.

About one-third of the 89 traditional hedge funds questioned in a PwC analysis from June 2022 was already investing in digital assets like bitcoin. The deVere CEO believes this momentum of interest could increase even further once the “crypto winter” of 2022 thaws due to changing circumstances in the outdated financial system. The CEO remarked:

U.S. interest in cryptocurrencies is rising

Not just HNW individuals have increased their cryptocurrency holdings in the last 12 months. As of December 13, 2022, according to JPMorgan Chase’s estimate, over 43 million Americans, or 13% of the entire population, owned cryptocurrency. Compared to 2020, when only 3% of Americans were predicted to have done so, this represents an increase.

Also Read | Why Cryptocurrency are the next big thing?

Four senior U.S. officials met with the U.S. Congress at the White House and urged it to “step up its efforts” to regulate the cryptocurrency sector. In their letter to Congress, the officials reportedly urged lawmakers to “increase regulators’ authority to prevent the exploitation of customers’ money and to limit conflicts of interest.”

Other suggestions in the letter to Congress included tightening the guidelines for the openness and transparency of cryptocurrency companies, escalating the punishment for breaking the laws governing illegal money, and enhancing cooperation with international law enforcement partners.

Did Crypto have a successful 2023?

As investors increase the value of digital assets despite industry challenges, the cryptocurrency markets have had a strong start to the year.

The most valuable digital currency in the world by market value, Bitcoin, recently surpassed $24,000 after rising by roughly 45% in 2023. However, it is currently $22,812 in amount. A Goldman Sachs report from earlier this month claims that this cryptocurrency has outperformed all other assets this year.

By total market capitalization, Ether is the second-largest digital currency in the world, surpassing $1,660 on January 21 after rising by about 40% since the start of 2023.

Also Read | Scam: Student From Oxford Is Imprisoned For Cryptocurrency Fraud

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