Crypto Millionaires: The Wealthy 0.02%

The digital revolution has minted a new class of high-net-worth individuals, as highlighted by a recent report from London-based firm, Henley & Partners.

by Faruk Imamovic
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Crypto Millionaires: The Wealthy 0.02%
© Getty Images News/Carlos Alvarez

The digital revolution has minted a new class of high-net-worth individuals, as highlighted by a recent report from London-based firm, Henley & Partners. The world now boasts approximately 88,200 crypto-millionaires, a fascinating evolution in the realm of wealth generation.

Cryptocurrency: The New Gold Rush

It's an astounding number, considering that these crypto-millionaires represent just 0.02% of the estimated 425 million people involved in cryptocurrency trading or ownership worldwide.

What defines someone as a crypto-millionaire, you ask? According to the firm's Crypto Wealth Report 2023, it's an individual with at least $1 million worth of cryptocurrency assets. Notably, nearly half of this elite club, specifically 40,500 individuals, have placed their faith in Bitcoin.

Dominic Volek, Group Head of Private Clients at Henley & Partners, shed light on the background of these digital millionaires. He mentioned to Insider, "Most of that would be new money that's sort of adopted in the last decade." This underscores the transformative nature of digital assets in reshaping wealth over a short span.

The Changing Face of Cryptocurrency Investment

The crypto landscape has undergone significant changes in recent years. Recalling the early days, Volek reminisced, "Five years ago, if I wanted to invest in cryptocurrency, it was too scary.

You need wallets and vaults and different exchanges, and which one do I use?" The present-day scenario stands in stark contrast. Enhanced regulations, better security measures, and a more informed user base have made investing in cryptocurrencies a safer proposition.

However, the world of digital currencies is not without its pitfalls. The volatile nature of the crypto market means that fortunes can be lost just as quickly as they are made. Volek candidly shared that his firm, renowned for offering migration services to the affluent, witnessed some crypto-millionaires retracting their applications due to sudden losses.

"It would affect them so much that they would say: 'Hang on,' or they would withdraw from applying because all of a sudden they didn't have that liquidity anymore, or weren't comfortable with participating in one of these programs," Volek revealed.

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