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Survey: Two-Thirds of Global Millionaires Invested or Planning to Invest in Crypto

Cryptocurrency Millionaire Investing 2019

Despite the historic price volatility and risk associated with investing in Bitcoin and other top digital assets, high net-worth individuals around the globe appear to be in favor of cryptocurrency.

According to a new survey conducted by the Dubai-based financial consultancy firm deVere Group, 68% of the world’s millionaires are already invested in cryptocurrency or plan to do so within the next three years. The deVere Group controls more than $10 billion in assets, with a client base of over 80,000 spread across the globe.

From the survey, deVere reports that more than two-thirds of individuals with asset’s valuing greater than 1 million British pounds (GBP) (the equivalent of $1.3 million), have either invested in Bitcoin and other high-profile cryptocurrencies, or report the strong intention of doing so by the end of 2022. deVere collected responses from over 700 of its clients, ranging from the U.S. to Australia, to conclude that wealthier individuals, as a whole, are betting on the future of cryptocurrency and digital assets.

The reports is somewhat in contrast to other surveys, which have found cryptocurrency investing to be disproportionately concentrated in younger and lower net-worth individuals, with the assumption being the extremely high risk/reward proposition of digital assets is attractive to this group. Now, deVere’s newly published data gives some indication that the investment base for cryptocurrency is broadening, with high net-worth individuals more likely than not to be actively investing in digital assets.

Nigel Green, founder and CEO of deVere Group, claimed that cryptocurrency has sparked significant interest in wealthier clients,

“The research shows that wealthy individuals are increasingly seeking exposure to cryptocurrencies. There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now.  High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.

The CEO also made the comparison between cryptocurrency and Amazon, stating that the former would do to fiat what Amazon has done to retail,

“Crypto is to money what Amazon was to retail.  Those surveyed clearly will not want to be the last one on the boat.”

Green highlighted a number of factors he found to be driving the investment interest into cryptocurrency, including Fear Of Missing Out. In addition to FOMO, Green found the borderless nature of cryptocurrency to be exceedingly attractive to high net-worth individuals, allowing them to better position themselves for the growing global economy. Having assets tailored for a digital format, such as Bitcoin, makes for a more modern form of currency that will ultimate challenge fiat.

Green also finds cryptocurrency to be better suited for overcoming real-world issues in commerce and business, stating,

“Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population.

As many other analysts have pointed out, millenial and younger investment interest in cryptocurrency could ultimately lead to a mass exodus from traditional markets to cryptocurrency, spurring substantial growth for valuation over the coming years.

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UK Regulator: Most Crypto Investors Driven By “Get Rich Quick” Mindset

A series of studies published by the United Kingdom’s Financial Conduct Authority (FCA) reveal some of the mentality driving cryptocurrency investment interest. While all investors, whether it be the traditional markets or cryptocurrency, are motivated by the pursuit of profit, the U.K. studies found that a “get rich quick” mindset was pervasive in the crypto investing community.

In one of the studies, conducted by research firm Revealing Reality, a series of interviews was used to quantify the focus and motivation for the broader crypto investing community. Of the crypto traders interviewed in the study, the overwhelming majority reported cryptocurrency as a way to “get rich quick,” and saw investing in digital assets as an easy path to fortune. While the crypto markets are entering their thirteenth month of “crypto winter” with many coins price still down over 80 percent, the sheer volatility in daily price movement for crypto has allowed some investors to capitalize despite the falling market–and an even larger majority hoping to go long in the event of another bullish run like the one which ended 2017.

It’s worth noting the UK firm’s research centered around 31 cryptocurrency investors, with 17 of them actually being interviewed for their motivations. Of the group that mentioned being driven by a get-rich-quick mindset, social media and the behavior of other cryptocurrency investors in the space were cited as more evidence of their FOMO mentality. Interestingly, the study also found that the majority of investors interviewed had a general lack of understanding about cryptocurrencies, with researchers reporting that one investor did not even realize digital assets could be bought in fractions as opposed to the whole coin.

Similar to comments made in the past by Warren Buffett, who has referred to crypto traders as “gamblers” instead of investors, the research team reported that the majority of investors engage in risky practices, such as failing to conduct research prior to making their investment and relying upon the advice of so-called “experts.”

A larger study cited by the regulatory body, conducted by research agency Kantar TNS, polled 2,132 United Kingdom consumers on questions related to cryptocurrency. Of those polled, only ¼ reported being familiar with cryptocurrencies, with 58 percent of respondents stating that they had never heard of the concept. Kantar TNS reported that the majority of those familiar with cryptocurrency were male respondents, falling into the age range of 20 – 44, a finding that is consistent with what other agencies have reported as the key demographic for crypto investors.

Of those respondents who could identify cryptocurrencies, 23 percent first heard about digital assets from online news, while 16 percent reported hearing about the industry from friends or family.

Given the consistent theme of risk and general lack of understanding–or, at best, failure to conduct adequate research-associated with cryptocurrency investing, the FCA issued a warning to U.K. investors about the high volatility of the industry. The government agency followed up with a reminder that crypto is still not regulated in the U.K., and that investors were putting themselves at greater risk by pursuing digital assets.

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Poll: 8% of Americans Invest in Cryptocurrency

Bitcoin (BTC)–A poll released by the analytics firm Harris Insights earlier in the month has revealed that roughly 8 percent of American adults are invested in cryptocurrency. While this number pales in comparison to a similar Gallup poll figure conducted in 2016, which found about 52 percent of Americans own stock, it does show a substantial makeup of investing for the relatively young industry.

The results come from a survey first circulated in June 2018, in conjunction with the cryptocurrency app Gem. In addition to finding 8 percent of adults currently invested in cryptocurrency, a large response to digital assets was negative, with 41 percent of the 2,000 polled stating they were not invested in crypto and nothing could motivate them to change their mind into doing so. Similar to previous reported findings, the largest reason for the lack of interest in cryptocurrency was price volatility and belief that the current market is still in a ‘Wild West’ phase, two risky features that make the form of investment less appealing to older generations. However, the poll did find that younger investors and those with less overall capital were much more willing to participate in the risky market, with Gem’s founder and CEO Micah Winkelspecht saying,

“We find that younger people with less income are more willing to put money in crypto,. My guess is that crypto is of the digital age. And the younger generation is of the digital age and used to doing everything on the internet.”

One of the more surprising results from the survey was the reluctance of polled adults, of any age, earning over $100,000 annually to invest in cryptocurrency, with the percentage of crypto investors increasing with decreased yearly income. In addition to cryptocurrencies being more in vogue with younger generations, Winkelspecht also posits that the upside of crypto investing outweighs the risk of loss and volatility to younger adults with less overall capital. He also admits that the trend of less wealthy investors putting money into cryptocurrency could be an effort to ‘get rich quick,’ ignoring the significant risks posed by the market in an effort to cash in on the regular double-digit swings of the industry.

“The cryptocurrency space is still in its Wild West phase, so there’s potentially some of that going on. When you have less to protect, you are more willing to take the risk.”

As Fortune points out, the survey was conducted in the middle of an extremely bearish year for cryptocurrency, with Bitcoin falling from an all time high last December of near $20,000 to below $7000, making the investment appear far more volatile with less enticing upside than if the same survey was conducted during last year’s bullish fourth quarter. Rather than continuing to build excitement for blockchain, Bitcoin and crypto adoption, most of the conversation surrounding the industry in 2018 has shifted to increased regulation and the possibility of a Bitcoin-based Exchange-Traded fund.  

Despite only 8 percent of polled investors currently participating in cryptocurrency, the survey found that 50 percent of American adults are interested in trying out the asset class in the future, similar to a finding reported earlier in the month that cryptocurrency will make up 5 percent of all investments in 2019. With the SEC still planning to weigh in on the debate over Bitcoin ETFs, it is possible that the market will continue to grow exponentially in response to increased regulation enticing institutional investors.

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Cryptocurrency Price: Pros and Cons of “Buying the Dip”

The quintessential question that arises in any cryptocurrency bear market is whether or not to buy the dip. 2018 has seen prices go on an extended steady decline and many experts argue whether or not to buy virtual coins in the hops of another significant price rally.

Likely Reasons to Invest in the Cryptocurrency Market

“Buy low sell high” is a basic trading aphorism. With cryptocurrency prices significantly down from their all-time high (ATH), traders stand the chance of making huge gains should a price rebound occur but only if they get into the market now. Crypto cynics have pronounced the end of the digital currency lots of times, and have always been wrong.

The possibility of a massive bull run exists if the SEC finally approves a Bitcoin ETF. When Bitcoin futures emerged in December 2017, BTC price surged to an ATH of $19,700 in a matter of days. A BTC ETF could see an even greater price surge. So far, the SEC has been reluctant in approving any BTC ETF filing, as seen in the VanEck ETF decision. However, bullish attempts are being made to get the regulatory body to change its mind. If you still believe in the possibility of a BTC ETF, then it’s only a matter of time.

Bitcoin could be this decade’s Amazon. Not many expected the tech behemoths of today to be this, especially after the dot-com bubble burst. The crypto prices might be bearish at the moment, but the digital currency is not just a fad. The nascent technology has a place in the future. Another reason to invest is that a lot of financial experts are investing in the digital currency. That gives the currency some credibility, and it shows you know what you are buying.

It Could All End Badly

The bears are ruling at the moment, as crypto prices have continued to descend. August isn’t faring any better, as the cryptocurrency market lost $43 billion in five days. As volatile as the market is, it will be costly holding on through the big dip. Investing in the digital currency isn’t the wisest of financial decisions to make presently.

Holding on to your coins can cost you if you aren’t careful. Malware, loss of private keys, sending coins to the wrong wallet, can make you lose your coins for good. It’s advisable to sell now than lose all your cryptocoins for nothing later.

Exit ICO scams are the order of the day, and the probability of landing on one is 80%. Recently, investigations showed that about $100 million had been lost to ICO exit scam. The safest way to go is to sell the digital coins in your wallet.

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Poll: Cryptocurrency Will Make Up 5% of U.S. Investing in 2019

Cryptocurrency–A new survey conducted by The Harris Poll has found that cryptocurrency represents a decent portion of the expected investment by Americans for 2019. Despite the continued decline in Bitcoin price and overall valuation for the crypto markets, outlook for future investment still remains strong as more Americans are planning to get involved in the coming year.

Traditional stocks, bonds and real estate still hold the lion’s share of market interest, but perception is growing among U.S. investors that cryptocurrency might be the next big asset class to take part in, particularly to a degree that mitigates overall portfolio risk while still gaining exposure to the upside. Commissioned on behalf of the American Institute of CPAs (AICPA), The Harris Poll survey found that among the 35 percent of Americans who classify themselves as current investors or plan to invest in 2019, cryptocurrency will make up 5 percent of their overall investment. To put that number into perspective Exchange Traded-Funds (ETFs), which have dominated cryptocurrency headlines following the back and forth process through the U.S. Securities & Exchange Commission, constitute 8 percent of projected investment funds. With the SEC delaying decision on VanEck’s bid to form a Bitcoin ETF to the end of September, it’s possible there will be a crossover of the two investment classes by the time 2019 rolls around.

In addition to judging investment interest into cryptocurrency, the survey sought to gauge education and understanding of the industry within America’s active investors. While the numbers were in line with other reports of lower-than-desired education levels, the poll reports just under 50 percent of respondents had little to no understanding of cryptocurrency–a sign of the times that the industry still has a long way to go before reaching market saturation and greater adoption. In a statement addressing The Harris Poll findings, the AICPA remarked upon the level of familiarity exhibited by American adults towards cryptocurrency, despite the promising numbers for future investment,

“Cryptocurrency appears to be foreign to many investors. The survey found that nearly half of U.S. adults (48 percent) are not familiar with Bitcoin, Ethereum, or Litecoin.”

The poll also found that current investors into cryptocurrency and those who were familiar with the industry held disagreeing opinions over the future of the market, an understandable sentiment given the volatility experienced throughout 2018. Among respondents who fit this criteria, 24 percent expected cryptocurrency to continue to appreciate in price, despite the current bear trend, while 29 percent reported that the market was in for further decline. Respondents also identified market volatility, with 35 percent believing that the price would continue to fluctuate wildly, and only 12 percent reporting that prices would stay the same.

Reflecting the balanced portfolio approach of polled investors, which weighed cryptocurrency as only a small, but risky portion of their overall investment, the AICPA report cautioned over the risks associated with crypto while taking a long-term approach on the market,

“Before Americans invest their hard-earned money, it is important they take control of their financial future and do some research … A well-researched and properly diversified portfolio that matches an investors risk tolerance will give confidence to stay focused on long-term strategy and protect from the temptation to sell during short-term price swings.”

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