Investing in cryptocurrencies is a risky business but for some, it's really paid off
Cryptocurrency investing is growing in popularity despite (or for some because of) its unregulated status and other risks, and for some its’s made them super rich.
The inaugural and first-of-its-kind Crypto Wealth Report from Henley & Partners, using New World Wealth data, reveals there are now 425 million crypto owners holding more than US$1.1 trillion in the digital currencies, with 88,200 people deemed crypto-millionaires.
Up a level, there are 182 centi-millionaires, holding at least $100 million in cryptos, and there are 22 crypto billionaires. Bitcoin accounts for more than half of crypto-millionaires fortunes while 72 of the centi-millionaires and six of the crypto-billionaires made their fortunes from trading Bitcoin.
However, these fortunes may be at risk, leading to these super-wealthy individuals seeking assistance to protect their digital currencies.
"We have seen a significant spike in enquiries from crypto millionaires over the past six months looking to protect themselves against any potential future bans on the trading or use of cryptocurrencies in their own countries and mitigate the risks of aggressive fiscal policies that tax digital assets at source,” said Dr. Juerg Steffen, CEO of Henley & Partners.
Recently, Coinbase officially launched in Canada and said the country can become a global leader in cryptocurrencies.
Canada among ‘crypto friendly’
The firm has considered the ‘crypto friendliness’ of jurisdictions around the world, using over 750 data points, to create the Crypto Adoption Index.
Those with the highest levels of cryptocurrency and blockchain adoption and integration include:
- Singapore
- Switzerland
- UAE
- Hong Kong
- United States
- Australia
- United Kingdom
- Canada
- Malta
- Malaysia
However, these were not necessarily the best for taxation of crypto-related activities. The jurisdictions that score highest on that basis are:
- Singapore
- UAE
- Hong Kong
- Mauritius
- Monaco
- Antigua and Barbuda
- Malaysia
- Namibia
- Switzerland
FAQs
The total value of all outstanding cryptocurrencies increased by 170%, adding some $1.6 trillion in market value over the past 12 months, according to CoinGecko. That's helped make at least 17 people crypto billionaires, according to Forbes' 2024 World's Billionaires list, up from nine crypto billionaires last year.
How many people actually made money on crypto? ›
According to a survey from lendingtree.com, conducted in November 2022, a higher percentage of 38% of cryptocurrency investors have reported to lost money rather than profited, 28% say they made a profit, and only 13% broke even.
How many people have gotten rich off crypto? ›
There are now 182 crypto centi-millionaires (namely, high net worth individuals with crypto holdings of $100 million or more), 78 of whom hold bitcoin, while six of the world's 22 crypto billionaires have amassed their fortunes from trading bitcoin.
Can cryptocurrency make you a billionaire? ›
Key Points
Current predictions call for Bitcoin to hit a price of $1 million by the year 2030. Even with Bitcoin soaring in price to $1 million, the likelihood of becoming a crypto billionaire with a very modest investment is quite small.
What crypto are billionaires buying? ›
As Bitcoin goes increasingly mainstream, it is drawing the attention of more billionaire investors. Mass buying by billionaires could lead to a supply squeeze, sending the price of Bitcoin soaring. As billionaire hedge fund managers boost their exposure to Bitcoin, it could lead to unpredictable outcomes.
Has anyone made money from cryptocurrency? ›
Yes, many people have made money investing in Bitcoin. The amount they've earned varies widely depending on factors such as when they bought in, how much they invested, and how long they held onto their investment.
Who owns 90% of Bitcoin? ›
As of March 2023, the top 1% of Bitcoin addresses hold over 90% of the total Bitcoin supply, according to Bitinfocharts.
What percentage of Americans own crypto? ›
Cryptocurrency awareness and ownership rates have increased to record levels: 40% of American adults now own crypto, up from 30% in 2023. This could be as many as 93 million people. Among current crypto owners, around 63% hope to obtain more cryptocurrency over the next year.
How much Bitcoin do I need to become a millionaire? ›
So, 10 times from those levels would mean that Bitcoin could go as high as $350,000, Saylor said. If this is the case, you would need to own 2.86 BTC to become a millionaire. It would cost around $190,000 today.
Who got rich off Bitcoin? ›
Winklevoss Twins – $1.4 Billion Net Worth Each
This early investment helped them amass a substantial amount of wealth and become Bitcoin millionaires as the value of the coin skyrocketed. Additionally, Cameron and Tyler Winklevoss co-founded Gemini, a cryptocurrency exchange, in 2014.
Changpeng Zhao, better known as CZ, is the founder and CEO of Binance, the world's largest cryptocurrency exchange by trading volume. His foray into Bitcoin began when he sold his house in 2014 to buy Bitcoin, a move that underscored his conviction in crypto's potential.
Do rich people invest in crypto? ›
The report, cited by Bitcoinist, suggests that 29% of millionaires have a “high degree of interest” in entering the cryptocurrency space as investors while another 27% “sit on the fence.” Altogether, then, a full 56% of HNWIs are either prepared to invest in digital currencies now or could likely be swayed to do so in ...
How likely is it to get rich from crypto? ›
The truth is that you can get rich by investing in crypto, but making money in crypto is the same as making money with any type of investment. To become rich, you have to do your research, work with a financial advisor, follow specific markets and make trades at the right time.
Who is the richest man in crypto? ›
| Changpeng Zhao |
|---|
| Born | February 5, 1977 Lianyungang, Jiangsu, China |
| Nationality | Canadian, UAE |
| Other names | CZ |
| Alma mater | McGill University (BSc.) |
6 more rowsDogecoin ($DOGE)
Spotlight Wire Dogecoin, commonly known by its moniker DOGE, being the world's first meme crypto is the strongest candidate on this list to achieve 1$ valuation. In the 2021 bull market, Dogecoin nearly reached this goal, hitting a high of $0.74376.
How many people own 10+ Bitcoin? ›
Today, there are currently 154,000 wallet addresses that hold more than 10 bitcoin. Given that there are 8 Billion people in the world, this means that roughly 1 in every 51,000 people have at least 10 bitcoin.
Who is the crypto billionaire in trouble? ›
Sam Bankman-Fried sentenced to 25 years in prison for his role in collapse of FTX crypto exchange. Former cryptocurrency billionaire Sam Bankman-Fried was sentenced Thursday to 25 years behind bars for his role in perpetrating one of the largest financial crimes in U.S. history.
Who owns 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo? ›
Binance owns the largest cold storage wallet address, 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo, which holds 248,597 BTC.
