Cryptocurrencies are gaining more and more appeal for investors, and this new bull run seems to be attracting an ever-rising number of high-net-worth individuals, significantly increasing the capitalization, popularity, and development of blockchain-based technological solutions.
A recent study carried out by the financial advisory company deVere Group revealed that about 70% of millionaires are into cryptocurrencies.
The organization polled over 700 individuals with at least £1m (1.3m USD) in investable assets and found as a result that 68% of these respondents already have some money in the cryptomarket or are interested in making considerable investments in the short term.
The 700-plus polled are located in the US, the UK, Australia, the UAE, Japan, Qatar, Switzerland, Mexico, Hong Kong, Spain, France, Germany, and South Africa.
Nigel Green, deVere’s CEO, explained that there is a growing tendency to accept the use of cryptocurrency as an evolution of traditional cash. He emphasized that investors want to take advantage of the opportunity offered by the markets and invest before the boom starts, maximizing their profits.
“Crypto is to money what Amazon was to retail. Those surveyed clearly will not want to be the last one on the boat.”
What Makes Cryptocurrencies so Appealing?
Mr. Green explained that from his point of view, five key aspects could explain the increased interest in crypto by this important financial and demographical sector:
- 1) Cryptocurrencies are borderless. This would allow them to do business globally using a sort of common currency.
- 2) Cryptocurrencies are digital. This technological approach increases the security and efficiency of transactions while avoiding manipulations.
- 3) Cryptocurrency solves real-life problems. This makes its use attractive as it allows investors to interact with a larger number of people who do not have access to banking services (or who simply do not want to trust these institutions).
- 4) Cryptocurrencies are more attractive to Young people. Which may be a sign that in the future they will be more interesting than traditional fiat money to the general population.
- 5) More and more institutional investors are joining, which can increase not only the global marketcap but also the credibility of crypto as serious technologies.
Green concluded his comments on the study by explaining that -of course- this interest has repercussions on the price of Bitcoin and the rest of the cryptocurrencies: “Once this confidence is in place, the sky is the limit for cryptocurrencies”.