Why aren’t rich people investing in Bitcoin?

To buy Bitcoin or not? That is the question that many financial eagles have asked themselves. 

Why don’t rich people jump onto the cryptocurrency and Bitcoin bandwagon? Most rich people reaped their wealth long before the advent of Bitcoin. However, the world has seen an explosion of millionaires of early Bitcoin investors. Do rich people know more about the future of cryptocurrency than us? They have access to highly skilled professionals and financial experts. Do they know something about cryptocurrency stocks that we don’t?

Cryptocurrencies are here to stay

Whether you hate or love cryptocurrencies, it is definitely here to stay. As with all types of investment, cryptocurrency does come with a high level of risk – which most people accept as the nature of cryptocurrency stocks.

The wealthy – through the years – never put all their cash-filled eggs into one basket. Instead, they rather spread those golden eggs over lots of baskets. All portfolio managers believe in diversification, making sure that their money is invested right across the board from property to commodities. This ensures that even if one or more of the investor’s portfolio products takes a knock that the overall growth of their client’s portfolio is still positive.

This holds true even today. The ultra-wealthy do not mind investing in something that has the potential to make their portfolios grow, but they will definitely not risk their last cent on something new and unproven. Many well-heeled people are also reluctant to admit exactly how much money they have invested in cryptocurrency stocks. This is because cryptocurrencies are still one of the most unstable and unpredictable stocks to invest in.

Cryptocurrencies have disrupted the money market

Banks notorious middlemen have been completely circumvented by cryptocurrency trading. All cryptocurrency transactions are anonymous and invisible – but only traced through the blockchain coding. This makes it safe – and highly complicated to tamper with.

One of the early believers of the future potential of cryptocurrency stocks is Olivier Janssens. This Belgian–born entrepreneur states his current job is a professional bitcoin investor since 2010. He was the first person to pay for a flight in a private jet with Bitcoin, which was 15 Bitcoins at the time (which converted into about $700). That same amount of Bitcoins is worth hundreds of thousands of dollars. Thinking back to that, he’s been noted as saying it was the most expensive flight he’ll ever take. Big-name corporate companies like Micro Strategy are also publicly disclosing large amounts of cryptocurrencies on their books. The future of cryptocurrency stocks seem to be unlimited, as every day more and more cryptocurrencies are minted.

Conclusion

Ultra-High Net Worth (UHNW) individuals (people with a net worth of $30 million or more) don’t like big jumps or upheavals when it comes to their portfolios. They do not mind taking risks but prefer risks to be offset as much as possible. They are in what is called preservation mode, according to finance geeks. These types of people simply do not have the high-risk tolerance required for crypto trading. The wealthy do invest in Bitcoin and other cryptocurrencies, but not to the same level of investment as with traditional stocks and funds.