The 2018 Wealth Report from Knight Frank, a global real estate consultant firm, has found that their clients have been exposed to cryptocurrencies the least out of all the assets surveyed, ranking lower than gold.
A chart from the Knight Frank Attitudes Survey shows the percentage of clients who only experienced an increase in exposure to certain assets, which puts cryptocurrencies below gold at 21 percent.
However, in response to the survey question, “How has your clients’ exposure to the following investments changed over the past 12 months?” the global average for exposure to cryptocurrencies is 16 percent, while the global average for exposure to gold and to bonds is less at 15 percent and 6 percent respectively.
Although Bitcoin (BTC) has sometimes been referred to as “digital gold,” the World Gold Council sees the main differences between the two assets as BTC’s lower “day-to-day liquidity” and gold’s diverse uses and application in the jewelry industry, as well as the tech industry and central banks.
The percent measures the difference between those who reported an increase in exposure versus those who reported a decrease.
According to the data, the region with the highest exposure to cryptocurrencies is Latin America, at 33 percent, which may be accounted for by rising hyperinflation in Venezuela’s economy. This hyperinflation may be leading to the “Bitcoinization” of Venezuela, as more Venezuelans have turned to crypto as opposed to using the Bolivar, whose total value at one point last fall was only equal to 50 percent of the virtual gold in World of Warcraft.
The region with the lowest average increase in exposure to cryptocurrencies is Asia at 5 percent. The lack of exposure could be attributed to the crypto bans currently in effect in China, such as the ban of domestic exchanges, foreign exchanges, as well as Initial Coin Offerings (ICO). South Korea, which is