Approximately 87% of crypto millionaires do not believe they can permanently lose their cryptocurrencies

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Cryptocurrency has emerged as a pivotal topic in the 21st century, which is no surprise given its transformative potential and far-reaching impact.

To many, they seem like a ray of hope, providing an investment sanctuary when traditional financial assets stumble.

It’s no surprise that the ultra-rich have enthusiastically embraced the crypto wave. – They are the most at risk.

Merrill Lynch and Wells Fargo, two of America's largest banks, are now offering Bitcoin ETFs to their wealthy clients.

But here's the twist – The billionaire's cryptocurrency expertise may not be as extensive as you think.

It's quite interesting to reach this conclusion. Given the considerable stakes at stake, there is a general assumption that crypto whales will not act without a comprehensive understanding of market trends.

After all, they have considerable wealth and are not at risk of losing it in the blink of an eye. But at our core, we are all human beings driven by a mixture of fear and greed.

No matter how much wealth we have, no matter how much experience we have, we can still make serious, sometimes irreversible mistakes.

And due to its easy yet risky nature, investing in cryptocurrencies has emerged as one of the easiest ways to suffer losses with no chance of recovery.

This is not just a guess, but a verifiable fact supported by numerous studies conducted by reputable analytics firms.

In fact, ultra-high-net-worth crypto investors lack critical knowledge about the critical security protocols needed to protect their assets and the measures taken by authorities to prevent money laundering.

They also contribute significantly to millions of dollars locked away in unclaimed crypto assets that can never be accessed.

Billionaires aren't worried – But they should be

First, Henry & Partners reported in June 2023 that there are currently more than 88,000 crypto millionaires worldwide, with an additional 180 centimillionaires and approximately 22 millionaires. Notice that there is.

As expected, the majority of wealth is concentrated in Bitcoin, with over 40,000 billionaires, almost half of millionaires, and over a quarter of billionaires holding their capital primarily in BTC. are doing.

Now let's combine these numbers with insights from another report conducted by Owner.One.

The study found that only 7% of ultra-high-net-worth founders and their families with up to $100 million in crypto conducted due diligence before entering into a transaction, indicating that ownership history has an advantage. It highlights that it is damaged.

Equally alarming is that only 12.8% of survey respondents understand the irreversible consequences of losing ownership of crypto assets, while a significant 87.2% They seem indifferent to the risks involved in holding them.

Additionally, a staggering 42.8% of Capital founders and an astonishing 88% of their descendants and relatives are not KYC (Know Your Customer) savvy.

Even more surprising is the fact that only 4% of respondents have a comprehensive understanding of the multifaceted challenges arising from KYC procedures.

Therefore, it is no surprise that millions of dollars in virtual currency remain unclaimed. Arkham's information alone has identified dozens of accounts involving six or seven people in the forgotten Bridge Contract.

And that number is likely to continue to grow, with new crypto users constantly entering the industry and around 1,500 new crypto millionaires created every day, according to analytics firm Kaiko Research.

Therefore, while new crypto assets are being created continuously, there is a significant lack of awareness about crypto asset management and asset futures among new ultra-high-net-worth investors.

“There is no problem that cannot be solved with money”

Ultra-high net worth individuals may overlook or underestimate the risks inherent in cryptocurrencies due to a lack of urgency.

Possessing considerable wealth, they may realize that potential losses from crypto investments are insignificant in the grand scheme of things.

The ultra-wealthy may also have an unwavering belief in their ability to manipulate financial markets.

The reason is simple –tOn their path to success, they certainly faced challenges. As a result, they have confidence in themselves and choose not to dwell on the worst-case scenario.

Finally, they just don't want anyone to know the extent of their assets or how to easily access them. This makes sense, as it could threaten their safety.

However, problems arise when they do not take responsibility for keeping assets safe and store information about them in a dangerous manner.After all, they are putting themselves at risk. – Not someone else.

There is a strong possibility that they may one day lose access to their money or face difficulties with KYC when authorities investigate the source of their wealth.

Therefore, the strategy of remaining silent for the sake of safety is not as safe as it may at first seem.

A small step for investors, but a big leap for the market as a whole

The impact on the HNWI (high net worth) market is significant. For example, just last week, one wallet sent him a staggering $6 billion in BTC.

An additional example is that two new crypto whales recently purchased $40 million worth of ETH, which was interpreted as an indicator of a bullish trend.

This highlights important trends –wWhen ultra-wealthy crypto investors take action, they have the power to create waves in the market and influence the direction of the market. This scenario has played out repeatedly.

Therefore, those who have great influence in the market must handle their assets carefully.

This is important not only to protect your own crypto assets, but also to protect the crypto assets of other investors and shape the future of cryptocurrencies.

One wrong move can destabilize your entire portfolio and the market.

Alex Onufriychuk is a blockchain advisor, entrepreneur, and coach at QUBIC Labs Accelerator. He is also the former co-founder and CEO of Kaminari, a Lightning Network infrastructure.

Featured image: Shutterstock/Eduard Muzhevskyi