The number of crypto millionaires in the world has seen a significant increase of 95% over the past year, according to a recent report by New World Wealth and Henley & Partners. The report reveals that there are now 172,300 individuals worldwide holding more than $1 million in crypto assets, compared to 88,200 in the previous year. This surge in crypto wealth can be attributed to the rise in popularity of bitcoin exchange-traded funds and other crypto assets.
One of the most notable findings in the report is the doubling of pure bitcoin millionaires, now totaling 85,400 individuals. Furthermore, the ranks of the crypto rich have expanded to include 325 centimillionaires, with $100 million or more in crypto holdings, and 28 billionaires in the crypto space. This exponential growth is indicative of the increasing adoption of cryptocurrencies as a viable investment option.
The report highlights that of the six new crypto billionaires created over the past year, five have accumulated their wealth primarily through bitcoin investments. This underscores bitcoin’s dominant position in attracting long-term investors who hold substantial crypto assets. The price of bitcoin has surged by 45% this year, reaching approximately $64,000, contributing to the overall growth of the crypto market cap to $2.3 trillion.
Forbes identifies Changpeng Zhao, the founder and former CEO of Binance, as the wealthiest 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 in the list include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy. The rapid accumulation of wealth within the crypto space is evident from the substantial increase in their net worth over the past year.
Despite the fluctuations in crypto asset prices and market caps, the growing acceptance of cryptocurrencies by major asset managers like BlackRock and Fidelity, along with the endorsement of regulatory bodies such as Morgan Stanley, suggests a promising future for wealth creation in the crypto space. This shift towards digital assets could potentially create more millionaires and billionaires in the near future, reshaping traditional notions of wealth accumulation.
Henley & Partners reports a growing trend among crypto millionaires and billionaires seeking to relocate to tax-friendly and crypto-friendly jurisdictions. The appeal of alternative residence and citizenship options is on the rise, with many crypto-rich individuals looking to establish a new base in countries that offer favorable tax and regulatory environments. Singapore, with its supportive banking system and comprehensive regulations, has been ranked first on the “Crypto Adoption Index,” followed by Hong Kong, the United Arab Emirates, and the U.S.
The exponential growth of the crypto millionaire population signifies a paradigm shift in wealth accumulation, as digital assets continue to gain traction in mainstream finance. The increasing number of millionaires and billionaires in the crypto space not only reflects the potential for substantial wealth creation but also hints at the broader impact of cryptocurrencies on global wealth distribution and lifestyle choices. As the crypto market evolves, it will be fascinating to observe how this new breed of wealth generators influences the traditional landscape of financial prosperity.