Crypto Billionaires On The Rise: How Fortunes Are Being Built In Crypto
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! Many Crypto players are joining the billionaire list at an accelerated pace. Unfortunately, SBF was a fraud who ran a Ponzi scheme that collapsed in 2022. SBF is currently serving time for his fraudulent practices. There was talk of FTX relaunching. However, that was not to be, as FTX is no longer operating as a Crypto exchange in any capacity.
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 in the top 1%, and future growth will only push it higher. It makes sense that TradFi would look to marginalize such an individual operating in an alternative financial market.
A Personal Point On Crypto Wealth: What Really Matters Long Term
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 wealthy, have played a significant role in helping bring the government to understand 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 & Extrapolation: The Truth Behind Crypto Growth Projections
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 under $200 billion in daily trading volume, 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 can replicate this type of performance. They may not match the numbers, but they can still produce massive returns. Crypto-based businesses that are well utilized will rise to become the new business leaders of the 21st century. It’s simply a matter of time, and Binance is well-positioned to be at the helm.
Accelerated Growth In Crypto: How It Happens
Warren Buffett 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 saw these “Crypto guys” closing in on your position of influence, you would have nothing good to say about Crypto either.
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 bias rather than facts. Another factor that gives the Crypto team an edge is their understanding of 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. Crypto players understand the position and workings of the opposing side, while the other side has no idea about Crypto or blockchain. You will remember the narrative attempted some years ago, which basically discredited Bitcoin but endorsed blockchain technology. This failed outright and has only served to display the threat that many now face.
Might As Well Join Them: The Case For Participating In Crypto Early
This has been the approach of players such as Soros. Even the Rothschilds own Bitcoin, and one can argue the motivation here. Whether it is for gain or simply as a hedge, one cannot say definitively. What we do know is that the haters are buying Bitcoin. There are some psychological takeaways one can further deduce, but I will exclude them 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 be slowly diluted out of the mix and relegated to secondary status in a new seat of wealth, created and already 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: Why Crypto Still Has Upside
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 at least 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.
Final Thoughts
So many factors and developments within the Crypto space continue to encourage and motivate me to keep building and pursuing 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. All the best! See you next time!