Cryptocurrencies have caught the attention of rich people around the world, even though they do not understand what cryptocurrencies 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 was found out by a 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.
However, there has been no significant shift and despite the crypto craze, interest towards traditional investments, like stocks and properties, remains high and they are still preferred by the wealthy. Experts are not surprised by that finding, as 2017 has been a good year for equities.
At the same time, property remains the mainstay 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.