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May 7, 2019

More than two-thirds of HNWIs will have invested in cryptocurrency by 2022

By Jamie Crawley

Sixty-eight per cent of high-net-worth individuals (HNWIs) will be invested in cryptocurrency in the next three years, according to a survey by the deVere group.

The research surveyed over 700 deVere clients residing in a range of countries including the US, the UK, Japan and Germany, with over two-thirds saying they are either already invested in crypto or intend to be by 2022.

Interest of HNWIs in cryptocurrency

Nigel Green, CEO of deVere group lists five reasons for the surging interest of HNWIs in cryptocurrency.

“First, cryptocurrencies are borderless, making them perfectly suited to an ever globalised world of commerce, trade, and people.

“Second, they are digital, making them perfectly suited for the increasing digitalization of our world, which is often called the fourth industrial revolution.

“Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population.

“Fourth, demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.

“And fifth, institutional investors are coming off the sidelines and moving into cryptocurrencies, bringing their institutional capital and institutional expertise to the crypto market.”

Is cryptocurrency the future of money?

Green believes that cryptocurrency represents the future for the financial world, saying it “is to money what Amazon was to retail”.

He concludes: “There is growing universal acceptance that cryptocurrencies are the future of money – and the future is now.

“HNWIs are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.”

Cryptocurrency became a global phenomenon in late-2017 when the price of standard bearer Bitcoin mushroomed to just shy of $20,000.

A year later the bubble appeared to have well and truly burst when the cryptocurrency had lost around 80% of this value.

Added to this, events such as the Quadriga mystery brought to the fore concerns about cryptocurrency’s security and lack or regulation.

Bitcoin has recently shown renewed signs of life, spiking to a five-month high in early April and has subsequently fluctuated above the $5000-dollar mark.

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