“Would you do it if you had a million dollars?”: Why do rich people invest in crypto

Reddit user HeirOfRhoads decided to find out if people would continue to be interested in cryptocurrency if they had a multimillion-dollar fortune in fiat, which would be enough for the rest of their lives. The experiment was a success; as it turned out, most people, even in this case, are ready to continue investing in crypto just for fun.

Yes, I would

The author says that if he had a life of luxury, he wouldn’t care much about Bitcoin and other cryptocurrencies and making money from them, BUT he would still be interested in crypto in general. That’s why he would invest some of his wealth in Bitcoin and Ethereum. Why? Because according to him, even if he lost money, it wouldn’t have much impact on his life, but he could probably donate all the money he earned from crypto investments.

Moreover, having such a fortune, you could also support interesting projects and help make it easier to onboard people into it if you had enough cash to back it, says Reddit user Cravensworth_redux.

Many would continue to invest specifically in cryptocurrencies because they do not trust banks, which can seize or freeze your millions every minute.

“My family experiences this when the economic crisis hit Greece. We lost more than 50% of all our assets (money, stocks, etc.) and could only take €80 every two–three days. It was literally chaos,” said Reddit user ChemicalGreek.

Sound horrible; no one would want to be in their shoes, would they?

According to Luizz__, when you already have more money than you need, it’s more about keeping the wealth instead of growing it. So, that’s why he would definitely put less exposure in crypto, but still, some for diversification.

“Also, some in stocks, real estate, probably gold, and of course some fiat as well. My main goal would be to get enough cash flow out of my assets to sustain my desired standard of living,” he said.

What do you think about this strategy? By the way, we reported about different ways to invest your money here.

No, I wouldn’t

For those who would not invest in cryptocurrencies, having a vast fortune in fiat is much less. One of them is Reddit user Whole_Visible.

“If I would rich, I’d be more concerned with wealth preservation across different currencies and eras of currency,” he said.

Whole_Visible is sure that the cryptocurrency ideal is to be able to buy things the say way as fiat. However, cryptocurrency is relatively useless until it’s used to transact for something that does something besides just hodl value for trade in the future. But large purchases, according to the Whole_Visiblis simpler to recognize and therefore regulate at points such as docks, border crossing, etc.

Instead of investing in crypto, he would have his fortune tied up in the ownership of wealth-producing assets. According to him, things like profitable companies in use farmland — are generally things of production.

“These things are what you would use the currency for. These are more likely to debase than any currency can. Obeying production, anything I want to buy, I have income in any relevant currency and can always take loans in whatever currency to against my assets to buy stuff and pay it off with the income from the business income,” Whole_Visible said.

Here’s another opinion. Maybe you are more in agreement with this strategy?

In conclusion, the author says that rich people have cash all over jurisdictions. For example, Mikhail Khodorkovsky spent a decade in a gulag and came out still hundreds of millions rich. But there are a lot of millionaires who prefer to invest in cryptocurrency.

Millionaires who invest in crypto

According to a recent Forbes research, 30% of the 65 wealthiest people in the world invest in crypto assets. The report says that this figure is higher than that of investors who do not have a billion-dollar fortune. 

About 18% of respondents said they hold at least 1% of their wealth in cryptocurrencies. Most of them are investing in the industry as an experiment.

80% of billionaires who invested in cryptocurrencies said they invested less than one-tenth of their wealth. 3.2% of respondents invested more than half of their fortune in digital assets.

Another 10% said they did not invest in cryptocurrencies directly but supported industry-focused companies.

One survey participant, FTX exchange CEO Sam Bankman-Fried said that between 76% and 100% of his $20.6 billion is in crypto-assets.

In 2019, deVere Group predicted that 68% of the world’s millionaires would invest in cryptocurrencies by the end of 2022. However, as we can see from the Forbes study, for the period of mid-2022, this figure did not exceed half of the planned. The reason for this was probably the sudden crypto winter; however, given the fact that despite the bear market, investors, although in smaller volumes, continue to buy coins, there is a chance that the bar will be broken a little later.