Wealth report: As old money procrastinates, young money goes crypto

cointelegraph.com:

The rich get richer. According to the Wealth-X consulting company, in 2020, the number of ultra-high-net-worth individuals worth $5 million–$30 million in the world increased by 1.7% to 295,450 people; the combined net worth of this group increased by 2% to $35.5 trillion.

Observing the investment preferences of rich individuals and institutional investors is instructive. They have access to exclusive information and analytics to inform their investment decisions, and their investments are often supported by an army of advisers, employees of family offices and wealth managers.

Due to the instability in world politics and high inflation in many parts of the globe, 2021 marked a trend for the wealthy to search for new investment growth points. Traditional assets, on which the fortunes of the establishment are usually based — real estate, securities, deposits — are currently under great pressure. According to economist Ziad Abdelnour, 70% of wealthy families in the United States lose their wealth in the second generation, and 90% lose capital in the third generation.

In order to save their clients’ money and their own business, global investment managers have been rebalancing investment portfolios throughout 2021 in an attempt to minimize the consequences of the COVID-19 epidemic and geopolitical shocks.

In 2022, the world faces larger-scale problems related to the conflict between Russia and Ukraine in Europe and tensions in the Middle East. Inflation, rising prices for gold, wheat, oil, palladium and other commodities, and general economic instability in many countries are forcing rich people to consider investing in cryptocurrencies.

Representatives of “old money” and “new money” tend to have different views on crypto assets.