The crypto-market has shed almost a trillion dollars in cumulative market cap amid its recent weakness. Meanwhile, Bitcoin remains down by almost 45% in value since its record high in November 2021.
1 billion crypto-investors
Alas, despite the mayhem, trading-platform Crypto.com has estimated that 1 billion people will likely invest in the asset class by the end of 2022.
With that being said, inflation could one of the biggest drivers that lead to crypto-adoption. Especially since ultra-high net worth individuals have been turning to crypto to beat the now permanent-looking inflation. In fact, a previous TIGER 21 report highlighted that the members have doubled on their crypto-investments.
It also revealed that it is being actively considered as an alternative to gold. The top investment vehicles range from Ethereum (34%), Bitcoin (33%), crypto-funds (23%), other alts (15%), and Dogecoin (2%).
Beating inflation with discretion
Michael Sonnenfeldt, Chairman and Founder of TIGER 21 said,
“As all investors should be, the ultra-wealthy are concerned about inflation and looking to preserve assets in 2022.”
In this regard, crypto-analyst Lark Davis recently explained that the ultra-wealthy can very easily buy $10 million worth of Bitcoin or Ethereum without crashing their value. However, it is not true for low cap coins. He said,
“You sell $10 million of Bitcoin, nobody even notices.”
Additionally, he thinks that investment in DOGE is interesting and probably “Elon Musk-inspired.” But when it comes to funds, Davis explained that these individuals are also betting on the start-up space with exposure to crypto-funds.
A report by Bloomberg had noted that the majority of virtual asset investors are looking at the asset class for speculative purposes. Therefore, for quick profits, many have deep-dived into the space. Some public figures including names like Miami Mayor Francis Suarez and New York Mayor Eric Adams have been accepting their paychecks in crypto too.
With regard to investment, TIGER 21 Member Andy Sack, Managing Partner at KeenCrypto LLC, noted,
“I’m very bullish on both Bitcoin and Ethereum. My personal assessment is that the wind is shifted in favor of Ethereum. I like the Ethereum alternatives as well—Solana and Avalanche, to name two.”
Asia’s richest turn to crypto
A recent report by Bloomberg, one that looked at Asia’s richest families like the Ambanis, Hartonos, and Mistrys, also observed their investment patterns. The Hartonos, Indonesia’s richest family, was reportedly in talks with Binance to set up an exchange. Meanwhile, other HNIs are also turning towards crypto in addition to their investments in tech and e-commerce.
For instance, the Chengs’ Chow Tai Fook Jewellery Group Ltd. has invested in crypto-trading exchange Matrixport and other virtual asset businesses.
However, not everyone is thinking this way when it comes to investing in cryptocurrencies. A TIGER 21 members poll published earlier this month showed that only 27% of respondents are bullish on crypto.