The world has witnessed a staggering 95% increase in the population of crypto millionaires within the past year, according to a recent report. The number of individuals holding over $1 million in crypto assets has surged to 172,300 from 88,200 in the previous year, with pure bitcoin millionaires more than doubling to 85,400. This exponential growth is indicative of the rising popularity and adoption of cryptocurrencies as a viable investment option.
The rise of crypto millionaires and billionaires has reshaped the wealth ladder, with 325 crypto centimillionaires (holding $100 million or more in crypto assets) and 28 crypto billionaires emerging onto the scene. The influx of institutional participation, driven by the rapid growth of bitcoin exchange-traded funds (ETFs) with over $50 billion in assets, has propelled the market cap of crypto assets to $2.3 trillion from $1.2 trillion last year.
Bitcoin’s dominant position in attracting long-term investors is evident as five out of the six new crypto billionaires owe their wealth to bitcoin. The price of bitcoin has surged by 45% this year, reaching around $64,000, further solidifying its status as the flagship cryptocurrency. Notably, crypto assets have reached a market cap of $3 trillion in November 2021, signifying continued growth in the sector.
Forbes reports that Changpeng Zhao, the founder of Binance, retains the title of the richest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, follows closely with a net worth of $11 billion. Other notable figures include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy, reflecting the diverse range of individuals accumulating wealth through crypto investments.
As crypto assets gain broader acceptance among major asset managers and financial institutions, there is a growing trend of wealthy individuals relocating to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are emerging as preferred destinations for crypto nomads seeking alternative residence and citizenship options. Henley & Partners’ “Crypto Adoption Index” ranks countries based on their regulatory approach to crypto, with Singapore leading the index due to its conducive environment for crypto business operations.
The proliferation of crypto wealth is expected to create more millionaires and billionaires in the future, reshaping traditional notions of wealth distribution. The involvement of big asset managers and financial institutions, such as BlackRock, Fidelity, and Morgan Stanley, is likely to fuel further wealth creation among large crypto holders. As the crypto ecosystem continues to evolve, it may also have a significant impact on where the wealthy choose to live and conduct their business activities, driving economic growth and innovation in crypto-friendly regions.
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