[2018-03-08] The Wealthy Want Crypto but Don’t Understand It, Survey Shows

[ivanpoldark]

The world’s richest people are putting more and more money into cryptocurrency, despite the fact they don’t understand it very well, a new report reveals. Terms like “distributed ledger” and “blockchain” are not especially familiar to the wealthy, according to their advisers. The widespread misunderstanding about the technology behind bitcoin seems to have little or no effect on the attractiveness of crypto investments however.   

Advisers Confirm Interest in Cryptocurrencies

Cryptocurrencies have caught the attention of rich people around the world, but that does not necessarily mean they understand very well what cryptos really are. About 21% of the respondents in an annual survey of wealth advisors and private bankers confirmed their clients increased investments in cryptocurrencies last year. The lack of understanding of the technology behind bitcoin – distributed ledger – is one of the findings of the latest Wealth Report by Knight Frank.

“We asked about their understanding of blockchain and there is still a huge amount of misunderstanding about it,” Knight Frank’s Head of Research for Asia-Pacific, Nicholas Holt, told CNBC this week. “Although people are getting on the train about investing in cryptocurrencies, perhaps there is not a full understanding of what this could mean to their wealth portfolio,” he noted.

Despite the crypto craze, interest towards traditional investments, like stocks and properties, remains high and they are still preferred by the wealthy, according to the report. Experts are not surprised by that finding, as 2017 has been a good year for equities.

At the same time, property remains the cornerstone of most portfolios, accounting for up to 50% of investments in the Asia-Pacific region. 34% of the respondents globally have confirmed intentions to invest in property overseas in 2018. The US and UK are the top markets, Nicholas Holt said. American commercial and residential markets are expected to grow following tax reforms there.

Read more: https://news.bitcoin.com/wealthy-want-crypto-dont-understand-survey-shows/

[1713486205]

1713486205

[hatshepsut93]

I think even people who understand the terms "cryptocurrency", "distributed ledger", "blockchain" - don't really understand the underlying fundamentals. You can see it by observing how hyper optimistic they are about every new project - and this is bad, because a huge number of those projects, mainly ICO's are scams, and they can be easily spotted when you try to read their whitepaper and realize that it's just a text full of buzzowrds and not a reali technical idea. So, not only the wealthy don't understand crypto, but most investors, users, and analysts too.

[Lancusters]

Why would rich people know the technical aspects of cryptocurrency and blockchain? They are interested in the practical properties of cryptocurrencies. With cryptocurrency, they can quickly and safely move their capital. The tax authorities are unable to arrest them. High liquidity of cryptocurrencies makes them more profitable than investments in stocks or deposits. That's enough for them. This means that there will always be a demand for bitcoin.

[Gotottack]

The world’s richest people are putting more and more money into cryptocurrency, despite the fact they don’t understand it very well, a new report reveals. Terms like “distributed ledger” and “blockchain” are not especially familiar to the wealthy, according to their advisers. The widespread misunderstanding about the technology behind bitcoin seems to have little or no effect on the attractiveness of crypto investments however.   

Advisers Confirm Interest in Cryptocurrencies

Cryptocurrencies have caught the attention of rich people around the world, but that does not necessarily mean they understand very well what cryptos really are. About 21% of the respondents in an annual survey of wealth advisors and private bankers confirmed their clients increased investments in cryptocurrencies last year. The lack of understanding of the technology behind bitcoin – distributed ledger – is one of the findings of the latest Wealth Report by Knight Frank.

“We asked about their understanding of blockchain and there is still a huge amount of misunderstanding about it,” Knight Frank’s Head of Research for Asia-Pacific, Nicholas Holt, told CNBC this week. “Although people are getting on the train about investing in cryptocurrencies, perhaps there is not a full understanding of what this could mean to their wealth portfolio,” he noted.

Despite the crypto craze, interest towards traditional investments, like stocks and properties, remains high and they are still preferred by the wealthy, according to the report. Experts are not surprised by that finding, as 2017 has been a good year for equities.

At the same time, property remains the cornerstone of most portfolios, accounting for up to 50% of investments in the Asia-Pacific region. 34% of the respondents globally have confirmed intentions to invest in property overseas in 2018. The US and UK are the top markets, Nicholas Holt said. American commercial and residential markets are expected to grow following tax reforms there.

Read more: https://news.bitcoin.com/wealthy-want-crypto-dont-understand-survey-shows/

This is no shocking to me because I have always believed that the wealthy always wants to pioneer onto something wherein they can put in a part of their wealth on the premise of growing their investments regardless if they have a good understanding on such endeavor. As they say, sometimes all you need is a leap of faith and see where it will take you. Well you know, it works for some. But do not get the hang of it because sometimes, what works for others, does not work for you. As in this case, cryptocurrencies are no exception. Perhaps, I see these people as part of the whales that are controlling the market nowadays.

[greeklogos]

As Googlectrends shows the interest to bitcoin is falling together with it's price and opposite. That tells us that people are searching some clear profit, but technical and progressive aspect is not so interesting and I think it is normal for rich people. They are searching for sources to make their capital work and raise and bitcoin gives them such opportunity, in the case if everything will pop I doubt that they will get too disappointed, because of no matter how much money they invested into crypto, they protocted them self some nice future in financial sense.