Hundreds of millions of people invest in cryptocurrencies. A new report shows how many crypto millionaires and billionaires there are.
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Hundreds of millions of people around the world own cryptocurrencies in some form, be it bitcoin or any of the many other digital currencies.
In fact, 425 million people use crypto, according to the Henley & Partners Crypto Wealth Report, released Tuesday by the investment migration consultancy.
Crypto may not be booming as much as it was at the peak of its popularity, but it remains a common investment. For example, more than half of Generation Z (aged 18 to 25) have invested in it, according to a report earlier this year by the CFA Institute and the Financial Industry Regulatory Authority’s Investor Education Foundation.
However, according to a Pew Research poll in April, 75 percent of Americans are unsure whether it is safe to invest in, trade in, or use cryptocurrencies right now, or whether they can rely on the tools currently available. 45 percent of respondents also said their investments hadn’t performed as well as they expected – and just 15 percent said they had exceeded expectations.
However, according to Henley & Partners, some appear to have had more success with crypto and now have millions or even billions of dollars worth of holdings.
The company’s report on Tuesday stated that 88,200 people have at least $1 million worth of crypto assets — less than 1% of all crypto users. About 40,500 of them hold their investments in Bitcoin, just under 46% of the total.
Far fewer people are so-called centi-millionaires who hold over $100 million worth of crypto assets. There are only 182 such investors, with 78 reportedly focused on Bitcoin.
And 22 people have at least $1 billion worth of crypto assets. Six of them hold their investments in bitcoin — a far smaller proportion than among crypto millionaires and centi-millionaires.
For comparison, the total value of the crypto market was $1.18 trillion at the time of writing.
As part of its report, Henley & Partners also developed a crypto adoption index that takes into account a variety of factors, including public acceptance of crypto, the regulatory environment, and how crypto is taxed.
Crypto infrastructure adoption, innovation, and economic factors related to crypto usage were also considered.
The index aims to highlight “the most attractive investment migration program options for crypto investors,” Henley & Partners said in a statement released alongside the report.
Singapore topped the overall index, followed by Switzerland in second and the United Arab Emirates in third, while the US and the UK were fifth and seventh.
Other countries in the top 10 included Australia in sixth place, and Canada, Malta and Malaysia in eighth, ninth and tenth place.
Both Singapore and the United Arab Emirates received top marks for their tax-friendliness for crypto investors. In this category, the US and UK fell far behind, dropping out of the top 10. However, public acceptance and interest is high in both countries, with the US ranking third and the UK fourth in this category. The UAE and Singapore once again take the top spots with places one and two.
The USA and Great Britain were also able to secure the top spot in some categories. The US tops the chart for infrastructure adoption, taking into account how widespread crypto ATMs are, whether there are digital asset exchanges and how local banks are integrating cryptocurrencies, while the UK tops the innovation and technology category.
Investing in cryptocurrencies has exploded in popularity over the past few years, especially during the Covid-19 pandemic when retail trading apps have proliferated. However, economists and investment advisors urge caution as crypto is considered a highly volatile asset that can rapidly depreciate and many countries have not yet regulated crypto investing and trading or businesses in the crypto space. Users and their funds are therefore less protected and potentially vulnerable to crises like the collapse of crypto exchange FTX last year.
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