- A Henley & Partners report reveals that 425 million people use cryptocurrencies.
- Crypto investment is popular among Gen Z.
- Over half of 18 to 25-year-old people invest in it.
- 75% of Americans are uncertain about cryptocurrency’s security and reliability.
- The report highlights 88,200 individuals owning over $1M in crypto assets, with some holding billions.
Numerous digital currencies, including Bitcoin, are held in some form by hundreds of millions of people worldwide, potentially turning them into crypto millionaires or even billionaires.
According to the Henley & Partners’ Crypto Wealth Report , which the investment migration consulting released on Tuesday, September 5, 2023, 425 million people specifically use cryptocurrencies.
While cryptocurrency may not be enjoying the same peak popularity as before, it remains a highly sought-after investment. Recent research from the CFA Institute and the Investor Education Foundation of the Financial Industry Regulatory Authority showed that over half of Gen Z (aged 18-25) have invested in it.
Yet, as per an April Pew Research survey , 75% of Americans remain uncertain about the security and reliability of trading, investing, or using cryptocurrencies. Among those surveyed, just 15% reported better-than-expected investment performance, while 45% expressed disappointment.
88,200 Individuals Hold $1M Each in Crypto
According to Henley & Partners, however, some people appear to have had better success with cryptocurrencies and currently have assets that are worth millions or even billions of dollars.
In a report released on Tuesday, September 5, 2023, the company claimed that 88,200 individuals – less than 1% of all cryptocurrency users – possess crypto assets worth at least $1 million. A little under 46% of them, or about 40,500, have Bitcoin assets.
Fewer individuals – the so-called “centi-millionaires” – have crypto holdings worth more than $100 million. There are just 182 of these investors, with 78 reportedly concentrating on the Bitcoin.
22 individuals also own cryptocurrency assets worth at least $1 billion. Six of them invest in Bitcoin, which is a far lower percentage than that of the crypto millionaires and centi-millionaires.
In contrast, the overall market value for cryptocurrencies was $1.18 trillion at the time the paper was prepared.
Acceptance of Crypto Worldwide
Henley & Partners created a Crypto Adoption Index as part of its study that takes into account a wide range of elements, such as public adoption of cryptocurrencies, regulatory landscape, and taxation of cryptocurrencies.
Additionally, they also considered the acceptance of the crypto infrastructure, innovations, and economic aspects of the use of crypto.
Henley & Partners wrote in a statement published along with the report that the index intends to illustrate “the most attractive investment migration program options for crypto investors.”
The United States and the United Kingdom came in as fifth and seventh, respectively, in the overall ranking, behind Switzerland in second place and the United Arab Emirates in third.
Other Nations in the top 10 were Australia, which came in sixth, Canada, Malta, and Malaysia, which came in eighth, ninth, and tenth, respectively.
Singapore and the UAE are rated as the most tax-friendly for crypto investors, while the United States and the United Kingdom dropped out of the top 10. The UAE secured the top spot, with Singapore in second place. Meanwhile, the United States ranked third, and the United Kingdom took fourth place, reflecting high levels of public interest.
U.S. Dominates in Infrastructure Adoption
Singapore and the UAE top the list as the most tax-friendly for crypto investors, while the United States and the United Kingdom slipped from the top 10. The UAE secured first place, with Singapore in second. The United States ranked third, and the United Kingdom fourth, indicating significant public interest.
In recent years, cryptocurrency investment has surged in popularity, especially during the Covid-19 pandemic when retail trading apps experienced rapid growth.
However, economists and financial experts urge caution due to limited regulation in many countries and the extreme volatility of cryptocurrencies, which can lead to rapid value fluctuations. This lack of protection makes users and their funds vulnerable to emergencies, such as the FTX cryptocurrency exchange collapse last year.