The cryptocurrency market has lost nearly $1 trillion in market cap due to recent weakness. Meanwhile, Bitcoin is down 45% in value since its record high in November 2021.
1 billion crypto investors
Despite the chaotic situation, trading platform Crypto.com estimates that 1 billion people are expected to invest in this asset class by the end of 2022.
That being said, inflation can be one of the biggest drivers of cryptocurrency adoption. Especially as ultra-high net worth individuals turn to cryptocurrencies to hedge against inflation, which appears to be a long-term problem. In fact, a previous TIGER 21 report highlighted that members have doubled their investment in space.
It also revealed that crypto is actively being viewed as an alternative to gold. Top investment vehicles include Ethereum (34%), Bitcoin (33%), crypto funds (23%), other altcoins (15%) and Dogecoin (2%).
Tackle inflation carefully
Michael Sonnenfeldt, President and Founder of TIGER 21 said:
“Like all investors, the super-rich are concerned about inflation and are looking to preserve their wealth in 2022.”
In this regard, recently analyst Lark Davis to explain that it is very easy for the super rich to buy $10 million worth of Bitcoin or ETH without losing their value. However, this does not apply to low-cap coins.
“You sell $10 million in bitcoin, no one notices.”
He also thinks investing in DOGE is interesting and likely “inspired by Elon Musk.” But when it comes to money, Davis explained that these individuals are also betting on the startup space by being exposed to cryptocurrency.
According to a Bloomberg report, the majority of investors in virtual assets view this asset class for speculative purposes. Many people have plunged into this field in search of quick profit. Several public figures, including Miami Mayor Francis Suarez and New York Mayor Eric Adams, have also accepted crypto payments.
Speaking of investments, Andy Sack, member of TIGER 21, Managing Partner at KeenCrypto LLC, noted:
“I am very bullish on both Bitcoin and ETH. My personal assessment is that the tide is turning in favor of ETH. I also like Ethereum alternatives like Solana and Avalanche.”
Asia’s richest man turns to cryptocurrency
A recent Bloomberg report examines the investment patterns of Asia’s wealthiest families, such as the Ambanis, Hartonos and Mistrys. The Hartonos, Indonesia’s wealthiest family, are said to be in talks with Binance to set up the exchange. Meanwhile, other families are turning to crypto alongside investments in technology and e-commerce.
For example, Hong Kong billionaire Henry Cheng’s Chow Tai Fook Jewelery Group Ltd has invested in the Matrixport exchange and other virtual asset companies.
However, not everyone thinks that way when investing in cryptocurrencies. A TIGER 21 member survey released earlier this month found that just 27% of respondents were bullish on cryptocurrencies.
The source: TIERS 21
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