The Uber Rich Investors Prefer This Altcoin Over Bitcoin


For many years and probably many years to come, bitcoin has been the number 1 digital asset for investors, especially those looking to invest for the long term. When the big money started to enter the crypto space, bitcoin was the first stop before diversifying into other assets. However, as time goes on and more altcoins begin to gain popularity, bitcoin is losing its grip as the number 1 choice for investors.

A recent survey of respondents from the ultra-wealthy class showed that they did not prefer bitcoin as their first choice. Instead, they chose an altcoin whose growth has rivaled and even surpassed that of bitcoin since its inception.

Ethereum rises to the top

Crypto.com revealed that the rich are gradually moving away from bitcoin. Their obvious choice next to the leading cryptocurrency is ethereum, which is currently the second largest cryptocurrency by market capitalization.

The crypto exchange’s numbers showed that ethereum has left its mark on the wealthy. With its wide range of use cases and applications such as decentralized finance (DeFi) and NFTs, the value of the cryptocurrency has grown exponentially. And with that, more investor confidence has come.

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Crypto.com achieved that ethereum beat bitcoin by 1% when it comes to the number of valuable investors going into crypto. Bitcoin came in at 33%, while Ethereum topped the list at 34%, which turned out to be the preferred digital asset for investment purposes. Crypto funds came in third with 23%, other altcoins dominated by 15%, while Dogecoin surprisingly made it to the list with 2% of investors willing to invest in the meme coin.

The crypto exchange also noted that approximately 1 billion people are expected to be invested in the crypto market by 2022. As it stands, ethereum could see a higher share of investors compared to bitcoin.

But why ETH?

Well, for those investing in the crypto space, there could be a number of factors. One is that banks’ low interest rates and returns from traditional investment opportunities such as stocks and bonds are too low to fight inflation. So to prevent inflation from affecting their wealth, these investors have chosen the crypto market for their needs.

ETH Recovers to $2,600 | Source: ETHUSD on TradingView.com

Bitcoin has been the inflation hedge of choice for years. But that’s all changing as the ethereum network has made great strides towards becoming deflationary. President and Founder of TIGER 21, Michael Sonnenfeldt, notes that high inflation rates are driving uber-wealthy investors to crypto;and by extension, ethereum.

“Like all investors, the super-rich are concerned about inflation and want to keep their wealth in 2022,” Sonnenfeldt says.

Related literature | Ethereum Whales Quietly Filled With ETH As The Broader Market Freaked Out

Likewise, another member of TIGER 21 explained that investors are beginning to prefer ethereum over bitcoin. In addition, similar projects such as Solana and Avalanche also benefit from this support.

“I am very optimistic about both Bitcoin and ETH. My personal assessment is that the tide is turning in favor of ETH. I also like Ethereum alternatives like Solana and Avalanche.” —Andy Sack, member of TIGER 21.

Featured image of The DO, chart from TradingView.com

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