The world has seen a significant increase in the population of crypto millionaires over the past year, with a staggering 95% surge in individuals holding more than $1 million in crypto assets. According to a report from New World Wealth and Henley & Partners, the number of pure bitcoin millionaires has more than doubled, reaching 85,400. Moreover, there are now 325 crypto centimillionaires and 28 crypto billionaires worldwide. This surge in wealth is attributed to the rapid growth of bitcoin exchange-traded funds and other crypto assets, which have seen an increase in market cap to $2.3 trillion, up from $1.2 trillion last summer.
The report highlights that out of the six new crypto billionaires created over the past year, five have accumulated their wealth through bitcoin investments. This underscores bitcoin’s dominant position in attracting long-term investors who make large holdings in the cryptocurrency. The richest crypto billionaire, Changpeng Zhao, the founder of Binance, is worth an estimated $33 billion. Following him is Brian Armstrong, the co-founder of Coinbase, worth $11 billion, with Giancarlo Devasini and Michael Saylor ranking next on the list.
The Evolution of Crypto Assets
Although many crypto assets are still below their 2021 highs, the increased acceptance of cryptocurrencies by big asset managers like BlackRock and Fidelity, along with support from firms like Morgan Stanley, is expected to fuel further wealth creation among large crypto holders. The recent rise in bitcoin’s price, which has jumped 45% this year to approximately $64,000, has marked a three-year round trip to previous levels. This growth points towards a potential resurgence in the market, as crypto assets reached a market cap of $3 trillion in November 2021.
With the increase in crypto wealth, many individuals are now seeking alternative residence and citizenship options in tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, which ranked first on the “Crypto Adoption Index” created by Henley, offer a supportive banking system, comprehensive regulations, and alignment with global standards, making them attractive destinations for crypto nomads. Hong Kong, the United Arab Emirates, and the U.S. also ranked high on the index, showcasing a trend of wealthy individuals moving to these regions due to favorable crypto regulations.
The rise of crypto millionaires and billionaires signifies a significant shift in global wealth distribution and investment trends. With the increasing acceptance of cryptocurrencies by institutional investors and the development of supportive regulatory frameworks in various countries, the potential for further wealth creation in the crypto market is vast. As more individuals seek to capitalize on the opportunities presented by crypto assets, the landscape of traditional wealth management and residence options is likely to undergo a transformation, with crypto-friendly jurisdictions becoming increasingly popular among the affluent.
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