Homemade wealthy individuals worldwide seem more likely to invest in cryptocurrencies like Bitcoin (BTC) as opposed to those whose wealth is largely inherited, a new study suggests.
Wealth-X, a research startup focused on wealth intelligence, released a new report Thursday on the quirks of crypto investments made by wealthy people worldwide.
This report is dedicated to high net worth individuals with a net worth of $5 million and above, including those professionally involved in the crypto industry and those who have a general interest in the industry.
As crypto moves into the mainstream, it is gaining popularity among wealthy individuals as an investment. The latest report from Wealth-X, Crypto Investment And the Wealthy, examines the characteristics of the high net worth investors in this sector. Download it for free – https://t.co/8kvzaeAvS9 pic.twitter.com/45eI66Yn52— wealthx (@WealthX) March 10, 2022
This report is based on data collected for Wealth-X’s proprietary database, including information and research on wealthy individuals conducted in January 2022. Specifically, the report analyzes a wealthy population model that provides statistical estimates for the total private wealth and population size by wealth level and investable assets for the world and each of the 70 largest economies and 200 cities, the report said.
According to the findings of Wealth-X, a whopping 94% of wealthy crypto entrepreneurs have earned their wealth on their own, without anyone relying purely on inheritance.
Of those with a general interest in crypto, nearly 90% were self-made wealthy, with 0.5% reliant on inherited wealth, the report notes. The report also notes that the majority of the general wealthy population, or 84%, is self-made.
“The data shows that homemade high net worth individuals appear to be more likely to invest in assets, such as crypto, which are riskier and more volatile than other asset classes,” Wealth-X analysts noted in the report.
“Given that they have generated their wealth through crypto, it is no surprise that inheritance hardly plays a role in the source of wealth of crypto founders or investors,” the researchers added.
Related: Binance CEO CZ Is Richest Crypto Billionaire With $96 Billion: Bloomberg
The crypto industry has produced some of the world’s richest men. Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, reportedly became the richest homemade newcomer in Forbes 400 history. As previously reported by Cointelegraph, he amassed an estimated $10 billion worth of crypto in just three years in early 2022.