The Rise Of The New 1%

Crypto Billionaires On The Rise

Recently it was reported that CZ, the CEO of Binance is now one of the wealthiest individuals in the world. With a reported net worth of $96 billion, it is literally amazing to think that the entire Crypto market was valued at that not so long ago. Sam Bankman-Fried of FTX is another billionaire climbing the ranks of the world’s wealthiest, with a net worth of $22.5 billion. They are not alone! There are many Crypto players joining the billionaire list at an accelerated pace.

What is important to note is that if key Crypto personalities are already multi-billionaires, where will they be when one factors in the potential growth in this market over the next five years or so? CZ already ranks up in the 1% and future growth will only push him further up the ranks.

A Personal Point

To be honest, I am not the type to be concerned about who the wealthiest person in the world is. However, we have to agree that the 1% ultimately have a large say as to what transpires in our world. Over time kingdoms rise and fall. They have a period of dominance that is eventually destroyed by a new and advancing kingdom. My hope is that a shift in the top tier could ultimately trigger a shift in global and government policies.

Looking back one can see how key people, though not even wealthy, have had a significant role in helping to bring understanding to the government in regard to Crypto. People such as Hester Peirce, Crypto Dad, and others have been key contributors. Consider the effect if the entire 1% was replaced by Crypto kings or at least the majority.

Basic Mathematics

One has to consider the growth factor of the current 1% and what they are invested in and exposed to. To be honest, I don’t see any industry outperforming Crypto and its multi-faceted economy over the next 10 years. Sure, perhaps over short-term price horizons, there may well be some but I am talking long-term here. Over the next five to ten years, Crypto and the tokenized economy will decimate all other rivals for the crown. This is in terms of year-on-year growth.

Looking at Binance alone, with just short of $200 billion in trading volume per day, this truly is a powerhouse. This equates to trillions per month, of which Binance takes a cut. Factor in withdrawal fees, as some are higher than the actual network fees and you have your own legal money printer. This is obviously when volumes are up and the market is bullish. However, as the market matures this will soon become the order of the day. This is just one exchange with one person at the helm. There are many other Crypto businesses that are able to replicate this type of performance. They may not match the numbers but they can still produce massive returns.

Accelerated Growth

Warren Buffet is 91 years old and it took him the majority of his life to build his wealth. CZ has basically matched Warren in a matter of years. The multiplication factor is massive and gives a true indication of how much wealth is being generated in this space. If you were Warren and you saw these “Crypto guys” closing in on your position of influence, you would also have nothing good to say about Crypto. A realist has to find at least a few good points about a competitor. The fact that there are never any from the mouth of Buffet is a clear indication of an expressed bias. One sure way to lose is to base your position on a bias and not facts. Another factor that gives the Crypto team an upper hand is that they understand traditional finance and the existing financial system.

The existing 1% are for the most part completely clueless. The term “know your enemy” comes to mind. The Crypto players understand the position and workings of the opposing side, while the other side has no idea about Crypto and the workings of blockchain. You will remember the narrative that was attempted some years ago, which basically discredited Bitcoin but approved “Blockchain technology”. This failed outright and has only served to display the threat that many now face.

Might As Well Join Them

This has been the approach of players such as Soros and the like. Even the Rothchild’s own Bitcoin and one can argue the motivation here. Whether it is for gain, or simply a hedge, one cannot definitively say. What we do know is the haters are buying Bitcoin. There are some psychological take ways one can further deduce but I will exclude that in keeping with the facts. In order for the current 1% to maintain dominance over the next decade, they will need to move significantly into Crypto in my opinion.

The alternative is to slowly be diluted out of the mix and become secondary to a new seat of wealth created and existing in a new asset class. What will they do and how will they address the challenge that lies ahead?

The Long-Term Remains Bullish

Despite current volatility, which was predicted by many by the way, the long-term picture for Bitcoin and Crypto remains bullish. When you factor that into your decisions, buying the dip makes a lot of sense, provided you have a long-term horizon. As I have said before, unless you have a minimum of a five-year horizon, buying Bitcoin doesn’t serve you well. You will most likely enjoy gains but you will miss out on the true Bitcoin effect, which ultimately plays out over longer time horizons.

Encouragement Remains

So many factors and happenings within the Crypto space continue to provide encouragement and motivation to keep building and working at portfolio growth. We have an unprecedented opportunity within our reach and we should most definitely be pushing to accomplish and build more each and every day. We may not become the next 1% but we can secure a financial heritage for our families and loved ones.

Thanks for joining me and hope to see you in the next one!

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