Bitcoin has recently crossed the $100,000 milestone, raising questions about whether wealthy investors will push prices even higher. According to research from Saltus, a financial planning firm, only 40% of high net worth individuals in the UK currently own cryptocurrencies, although 46% plan to invest in the future. Younger individuals are more inclined towards crypto, with only 7% of those aged 18-24 holding no interest compared to 69% of those over 55. The study also shows that those who haven’t received financial advice are less likely to invest in crypto. Experts advise that while investing in cryptocurrencies can be tempting, it’s essential to approach it cautiously, especially for those nearing retirement.
December 17, 2024 12:21 PM EST | Source: Press Ranger
Bitcoin Hits $100k: What This Means for High Net Worth Investors
As Bitcoin surges past the $100,000 mark for the first time, the question on many minds is whether high net worth individuals (HNWIs) will further fuel this price increase. According to recent research from the financial planning firm Saltus, less than half of HNWIs in the UK currently own cryptocurrency.
Key Research Findings:
– A survey of 2,000 individuals, each with investable assets exceeding £250,000, revealed that only 40% possess crypto assets.
– Despite this, an impressive 46% of those surveyed express intentions to invest in cryptocurrency in the near future.
– A mere 16% of HNWIs have no interest in crypto, indicating a shift in Market sentiment.
Age Plays a Role in Crypto Investment
Interestingly, the research highlights how age influences crypto ownership among HNWIs. Among individuals over 55, a significant 69% do not hold any cryptocurrency, in stark contrast to the younger demographic. Only 7% of 18-24-year-olds and 9% of those aged 25-34 report not being interested in investing in crypto.
Additional Insights:
– Among those aged 45-54, 35% currently own crypto, yet over a quarter (27%) have no plans to invest.
– Financial advice appears to correlate with the likelihood to invest in cryptocurrencies. A staggering 67% of HNWIs who have never sought financial advice do not own crypto nor plan to.
Expert Opinion
Mike Stimpson, a partner at Saltus, emphasizes the potential implications of Bitcoin’s $100k milestone. He noted, “Our research shows that a large number of high net worth individuals do not currently hold any cryptocurrency at all, but many younger people plan to.” Stimpson warns, however, that cryptocurrency investment should be approached with caution. He recommends that only those who are willing to accept potential losses make crypto a part of their investment portfolio.
For those nearing retirement, he advises a more conservative approach, highlighting the importance of tailored financial advice.
Conclusion
As Bitcoin continues to rise, the intrigue among high net worth individuals grows. While interest is notably lower among older investors, younger HNWIs are ready to embrace cryptocurrencies. This shift could indeed contribute to further price increases. However, caution and professional advice remain keys to navigating this volatile Market.
For more details and insights, you can visit Saltus Financial Planning or connect with their team for personalized advice.
Source: Press Ranger
What is cryptocurrency?
Cryptocurrency is a type of digital money. It uses technology to secure transactions and control the creation of new units. Unlike regular money, it’s not controlled by any government or bank.
Why do high net worth individuals invest in cryptocurrency?
Many high net worth individuals invest in cryptocurrency because they see it as a way to diversify their assets. They believe it can offer high returns and act as a hedge against inflation.
Is cryptocurrency safe to invest in?
Investing in cryptocurrency has risks. Prices can be very volatile, and the Market can change quickly. It’s important to do thorough research and consider personal risk tolerance before investing.
How do you buy cryptocurrency?
You can buy cryptocurrency through exchanges. First, you set up an account, then you can use money from your bank to purchase the coins you want. It’s also important to store your cryptocurrency safely, often in digital wallets.
What are the tax implications of holding cryptocurrency in the UK?
In the UK, profits from selling cryptocurrency may be taxed as capital gains. It’s crucial to keep records of your transactions to report accurately to HM Revenue and Customs. If you’re unsure, consulting with a tax professional is smart.
