Cryptocurrencies contain attracted investments from the ultra-rich around the world even even though they may lack sufficient understanding of the technology behind the asset importance.
Around 21 percent of respondents in an annual survey of wealth counsels and private bankers said their clients increased investments in cryptocurrencies in 2017, correspondence to the latest Wealth Report by Knight Frank.
“In a separate question, we bid about their understanding of blockchain and there’s still a huge amount of misconception about blockchain,” Nicholas Holt, Knight Frank’s head of fact-finding for Asia Pacific, told CNBC on Wednesday.
“So, although people are shoot on the train about investing in cryptocurrencies, perhaps there’s not a full opinion of what this could mean to their wealth portfolio,” he enlarged.
Blockchain — referring to distributed ledger technology that allows annals to be recorded and maintained — is behind cryptocurrencies such as bitcoin, which created headlines last year due to their huge and rapid swing in outlays.
Some have sounded warnings on cryptocurrency, saying that bitcoin, for happened, may not maintain its value. Several countries have also stepped in to ban transacting or the usage of cryptocurrencies. But the increased popularity of digital currencies led to the launch of bitcoin followings in the U.S.
Still, the ultra-rich seemed to prefer parking their wealth in customaries and properties, the Knight Frank report showed.
“That’s not surprising due to the certainty that equities did very well last year,” Holt said. “And haecceity still remains the cornerstone of most wealthy individuals’ portfolios, accounting for up to 50 percent in myriad portfolios.”