Visual Capitalist show where UHNWIs invest their fortunes, based on a global survey from Knight Frank of over 500 wealth managers, family offices, and private bankers that oversee a combined $2.5 trillion in assets.
It shows that an investment in Real Estate is the favorite investment allocation for the ultra rich. On the one hand more than 50 % of their total wealth is stored directly or indirectly in Real Estate. On the other hand their allocation in Crypto Assets is less than 1 %. Let’s assume that the allocation in Bitcoin is currently at 0.5 %.
Why is Bitcoin superior to Real Estate? Here five advantages according to ChatGPT:
- Decentralization: Bitcoin is a decentralized currency that is not controlled by governments or financial institutions.
- Transparency: All Bitcoin transactions are public and can be verified by anyone.
- Fast transactions: Bitcoin transactions can be completed within minutes without the need for an intermediary.
- Scarcity: There will only be a limited number of Bitcoins, which can help increase the value long-term.
- Potentially high returns: Bitcoin has historically provided high returns and can be a lucrative investment.
What do you think will the allocation from Bitcoin be in 2 years from now?