Ultra-Rich Investing in Horses, Cars, Cannabis, and Cryptocurrencies
$BTCUSD $CME, $CBOE
The world’s wealthiest investors are looking to expand their holdings in volatile digital coins, despite a mismatch in the group’s knowledge surrounding the asset class.
The latest annual Wealth Report survey by Knight Frank indicated that 21% of wealth advisers and private bankers said their clients increased investments in cryptocurrencies in Y 2017, yet “there’s still a huge amount of misunderstanding” around the blockchain-enabled technology.
Nicholas Holt, Knight Frank’s head of research for Asia Pacific, told HeffX-LTN Wednesday that, “although people are getting on the train about investing in cryptocurrencies, perhaps there’s not a full understanding of what this could mean to their wealth portfolio.”
Crypto Bears have warned against investing in digital currency such as Bitcoin, the world’s largest cryptocurrency by market capitalization, due to the highly speculative nature of its market, wherein they suggest that investors are buying on the mania as opposed to the intrinsic value of the asset.
Knight Frank’s report suggests that even the wealthiest of cryptocurrency investors are in the dark regarding blockchain, the technology behind Btcoin, which allows transactions to be recorded and maintained.
Currently, Bitcoin is trading at: 9,848.0049, -632.79, or -6.04% as of 6:11a GMT, the market is open
While the heightened popularity of cryptocurrencies such as Bitcoin has flooded headlines, the recent report indicated that ultra-rich clients continue to prefer putting their money in stocks, Tier 1 collector cars (Classic Ferraris lead the trend), thoroughbred horses, real estate and now cannabis.
“That’s not surprising due to the fact that all of those asset sectors did very well last year,” said Mr. Holt. “And property is still the cornerstone of the most wealthy individuals’ portfolios, accounting for up to 50% in many portfolios.”
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