Investments in cryptocurrencies are growing in popularity around the world, which is reflected in the increase in billionaires who owe their fortune to these investments and those tycoons who are turning to these assets.
According to the recent Forbes Billionaires List, the number of people who have built their fortunes on cryptocurrencies increased by bitcoin, ethereum and BNB.
In addition, there are 19 crypto billionaires in the world, according to the publication, seven more than the 2021 list, which represents a growth of 58%.
The businessman who leads this list is the CEO of Binance, Changpeng Zhao, who has a fortune of more than US $ 65,000 million that they have managed to achieve with the cryptocurrency exchange.
On the list follows Samuel Bankman-Fried, an American businessman who is the founder and CEO of FTX, which also functions as a cryptocurrency exchanger. He boasts a fortune of $24 billion, less than half of Zhao’s wealth, but enough to be the second-biggest crypto billionaire by 2022.
In third place is the American business executive and investor, Brian Armstrong, CEO of the cryptocurrency platform Coinbase, and holder of a fortune of US$6.6 billion.
Rounding out the top five are FTX co-founder and CTO Gary Wang, with an approximate wealth of $5.9 billion, and Chris Larsen, co-founder of Ripple, the bank’s international payment facilitator using blockchain technology and who has a fortune of US$4.3 billion.
The top 10 of the biggest crypto-millionaires is completed by the twins Cameron and Tyler Winklevoss, co-founders of Gemini; Song Chi-hyung, founder of Dunamu; Barry Silbert, founder and CEO of Digital Currency Group; and Jed McCaleb, one of the pioneers in investing in the blockchain.
The cryptocurrency business is attracting the attention of other billionaires who are diversifying their investments through this medium.
The most recognized case is precisely that of the richest man in the world, Elon Musk.
The physicist, entrepreneur, and co-founder of PayPal and Tesla Motors, is an outspoken cryptocurrency activist. He has boosted the value of bitcoin with his controversial tweets and accepted digital currencies as a payment method for company cars.
He recently embarked on a campaign to buy Twitter and several analysts say he is looking for a means of communication to continue promoting his investments.
“What Elon Musk is looking for is a communication channel that is vital for the health of his companies, that is, Musk communicates through Twitter to achieve significance through his communications, and with this he achieves a fairly large impact. We have already seen some tweets that have generated an impact on the shares of Tesla and its cryptocurrency; therefore, it is evident that he is looking for a vital communication channel that, in a certain way, benefits his businesses, ”said Martin Piqueras, professor at OBS Business School and expert in digital strategy.
But Musk is not the only billionaire who has entered the world of cryptocurrencies.
Other entrepreneurs who made their fortunes through recent technological innovation have also invested in crypto like Amazon founder Jeff Bezos; former Twitter CEO Jack Dorsey; and Mark Zuckerberg, programmer and creator of Facebook.
But there are also traditional investors, such as the renowned fund manager Bill Miller, who invested 50% of his assets in bitcoin, Mark Cuban, an American businessman and owner of the NBA’s Dallas Mavericks, who owns bitcoin, ethereum and polygon; and Michael Saylor, CEO of MicroStrategy, and who assured that he has invested US $425 million in bitcoin.
The main concerns for investments in digital assets
For investors, the biggest concern when investing in crypto assets is high volatility, which is why analysts such as Andrés Moreno Jaramillo recommend having adequate risk levels for it. Elon Musk himself has clarified “don’t bet the farm on cryptocurrencies.” And last May, when Musk had bet on Dogecoin, he mentioned: “Don’t invest your life savings in cryptocurrencies. That’s unwise.”
The lack of knowledge about cryptocurrencies is also another fear. “Clearly there is a lot of interest in cryptocurrencies, but there are also cybersecurity concerns around exchanges and tokens,” says Patrick O’Neill, Managing Partner at Sherlock.