In a brief interview segment, host Becky and Mike discuss a recent report indicating a 40% year‑over‑year increase in cryptocurrency millionaires. Robert Frank cites data from Henley Partners and New World Wealth, noting that the number of crypto holders with at least $1 million rose to 240,000 (including 70,000 new millionaires), alongside 450 individuals with $100 million+ and 36 billionaires. Bitcoin’s price more than doubled and the total crypto market cap grew by over $2 trillion. Economists estimate crypto investors spend roughly 10% of each dollar of wealth gained, translating to about $200 billion in extra spending this year. As early adopters age into their 30s and 40s, their spending focus shifts from luxury cars to real estate, with regions dense in crypto investors experiencing notable home‑price appreciation during crypto rallies.
According to a recent survey, there's been a 40% increase on new millionaires in cryptocurrency.
Crypto's latest surge minting a new class of millionaires. Robert Frank joins us right now on where this group is putting its money to work. And Robert, always great to see you.
Great to see you, Becky. Good to see you, Mike. Well, the rise in Bitcoin recently helped create another 70,000 crypto millionaires. That's just over the past year. There are now 240,000 people with crypto holdings worth $1 million or more. That's according to a new report from Henley Partners and New World Wealth. There are 450 crypto centimillionaires. Those are folks with $100 million or more in crypto and 36 crypto billionaires. The price of Bitcoin more than doubling, of course, over the past year, and the total market cap of all crypto has increased by over $2 trillion. So how much of that is going to be spent? Well, new research by a group of economists found that for every dollar gained in crypto wealth, Crypto investors spend about $0.10. So that would equate to about $200 billion in additional spending this year. With early crypto investors now getting up there in age, they're sort of in their 30s and 40s. Buying Lambos has been replaced by real estate. Study found that locations with large crypto populations saw larger gains in home prices when there were crypto rallies.
There's a couple of things you can take from this. This has always been the strategy, right? Crypto has volatility, high risk, high reward. A lot of people are scared of that. But the goal has always been to take the money out of crypto and put it in something stable. The goal is not to keep money in crypto forever. The beauty of cryptocurrency is you have asymmetric opportunities. You have high win chances that you don't find in other markets where you can get a 5,000% increase, 10,000% increase. I'm proof of it. You guys know my story. I've got over a 10,000% increase. And this opportunity allows you to siphon that wealth into something that's wealth preservation, like gold or real estate or whatever the case is. So the main point is, is that you don't keep your money in crypto forever. You eventually take it out. And yes, it's high risk, high reward. And I think that's what everybody knows. The second thing you can draw from this is the fact that places that have high crypto population literally have an increase in real estate prices. So cryptocurrency is so lucrative and there's so much wealth being created that it's affecting the price of real estate. So for people to think that this is not a legitimate asset class, I would say that there's been a lot of new millionaires, as you can see from the statistics, and a lot of billionaires being created in this market. Look at this for a second. So 40% over the last year, a 40% increase in millionaires in crypto, a 38% increase in centimillionaires, people over $100 million, and a 29% increase in billionaires. You don't just get these numbers out of nowhere. Crypto is a legitimate asset class that's here to stay, to the point where it's literally affecting traditional markets.
