There are lessons to be learnt as the social media network launches its own cryptocurrency
The rise in wealthy individuals investing in cryptocurrency globally can only increase
Facebook has just announced plans to enter the cryptocurrency market with its own vehicle. Called Libra, the world’s biggest social media platform is expected to launch it by next near. Cryptocurrencies are now unquestionably part of mainstream finance.
This was further evidenced in a recent global poll carried out by deVere, which revealed over two-thirds of HNW individuals will be invested in cryptocurrencies over the next three years.
The survey showed 68% of those questioned are already invested in, or intend to make investments in cryptocurrencies — such as Bitcoin, Ethereum and XRP — before the end of 2022.
The over 700 high-net-worth clients with more than £1m (or equivalent) in investable assets polled reside in the US, the UK, Australia, the UAE, Japan, Qatar, Switzerland, Mexico, Hong Kong, Spain, France, Germany and South Africa.
These findings underscore how more and more wealthy individuals around the world are turning their attention to cryptocurrencies.
We are seeing a mounting global realisation and understanding that cryptocurrencies are the future of money. And that future is now.
Indeed, HNWIs do not want to miss the boat, and are reviewing and rebalancing their investment portfolios to include digital currencies.
As well as taking into account the FOMO — “fear of missing out”— factor, to my mind there are five key reasons why HNW investors are increasingly interested in cryptocurrencies:
- First, cryptocurrencies have no borders. This makes them ideal for an increasingly globalised world of business, trade and people.
- Second, cryptocurrencies are digital, which makes them perfectly matched to the mounting digitalisation of today’s world, often referred to as the fourth industrial revolution.
- Third, digital currencies provide solutions for real-life situations, including increasing the efficiency of international remittances, and helping bank the world’s estimated two billion “unbanked” population.
- Fourth, demographics favour cryptocurrencies, as the younger generation is more likely to accept and adopt them than older generations.
- Finally, fifth, institutional investors are now moving into the world of cryptocurrencies. They are coming off the sidelines and bringing their institutional capital and expertise to the crypto market.
I’ve said on countless occasions that cryptocurrencies are the future of money, and the recent price rally by Bitcoin, the world’s largest cryptocurrency by market capitalisation, reinforces this further. April was a great month for Bitcoin, with a 20% price increase at the beginning of the month, followed by additional price gains to push the figure above the $5,500 mark.
As such, I believe Bitcoin will soon test the crucial $6,000 price support, helping to boost confidence in the wider cryptocurrency market.
Once that confidence is there, there will be no limit for cryptocurrencies, which are increasingly being accepted by retail and institutional investors as the future of money. And this latest deVere survey highlights a global upturn in cryptocurrency-based optimism.
The writer is founder and CEO of deVere Group
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