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World's Rich Have High Interest in Crypto, But Lack Real Advice

Tue, 06/19/2018 - 14:36
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Darryn Pollock
The World’s rich are rightly intrigued by cryptocurrency, but a survey reveals that they are hungry for some really good advice on the new asset class
World's Rich Have High Interest in Crypto, But Lack Real Advice
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The cryptocurrency bug has not missed the world’s richest people as a recent survey conducted by Capgemini shows that 29 percent of high net worth individuals have a high degree of interest in cryptocurrency investment and are not receiving adequate advice from their wealth managers.

The survey looked at individuals who had at least $1 mln to invest excluding their main assets and saw investment returns above 20 percent in 2017 for the second year in a row. These individuals showed their interest but also showed that they were not being advised as they would with other traditional assets.

Young and rich

The survey also showed that of those rich individuals, the younger ones placed a higher importance on receiving good advice about cryptocurrencies.

The survey found that 71.1 percent of younger millionaires (age 40 and below) place “high importance” on receiving information about cryptocurrency from their wealth management firms.

On the other side of things, only 13 percent of those aged 60 and over do, but it is still telling that these rich investors are looking at the possibility of cryptocurrency as a good asset.

Overall, only 34.6 percent of them said that they had received cryptocurrency information from their wealth managers.

Concerns from wealth managers

The Bitcoin and cryptocurrency space is still very fresh and uncertain, and for those who deal in the money of their clients, there is a lot of risk in advising to get involved in this new economy.

However, the demand is bound to drive a more risky approach from the wealth management firms it was predicted by the survey.

“Although regulatory uncertainty and firm caution have prevented cryptocurrencies from penetrating the wealth management industry, the strong demand for information on cryptocurrencies from younger HNWIs is likely to force wealth management firms to at least develop and offer a point of view during the months ahead,” it said.

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.