It is great to see, that despite the continuous warnings by banks and governments going around, a lot of millionaires still see the opportunity and decide to invest their money in digital assets, leaving behind the old-school options such as stocks, bonds, metals and properties. The Wealth Report, by Knight Frank, has showed that around 21% of respondents increased their crypto investments in 2017. We are looking at private investors managing financial businesses and wealth advisers. Nevertheless, more education is required, as the majority of these people still probably lack knowledge on the technology behind digital assets.

CNBC conducted an interview with Nicholas Holt (who is the head of research for Kinght Frank at the Asia Pacific region) in which he stated that:

„In a separate question, we asked about their understanding of blockchain and there’s still a huge amount of misunderstanding about blockchain…”

He added: „So, although people are getting on the train about investing in cryptocurrencies, perhaps there’s not a full understanding of what this could mean to their wealth portfolio”

There is a common misconception in general regarding Bitcoin and blockchain. Blockchain is underlying technology behind Bitcoin. It allows fast, secure and transparent peer-to-peer data transfer, which are recorded in a public ledger. Blockchain allows digital information to be distributed uncensored and globally, while Bitcoin is the digital asset on top of the Blockchain, in this case, the data that is stored. Bitcoin is currently viewed as the digital gold by those who fully understand the fundamentals behind it. Further proof for the demand on Bitcoin between potential investors who lack underlying knowledge on the technology is the recent news that Coinbase launched its Index Fund, which should make investing into the biggest digital assets a lot easier.

To download the full report, check here: http://www.knightfrank.com/wealthreport/2018/download