BIS Report Throws Light on Altcoins Preferred by Educated & Wealthy Investors
For several years, market experts have urged individual investors to track the “smart money” if they make an investment in profitable stocks. Institutional investments and market whales are the most common sources of smart money.
There is, however, another type of smart money: affluent and well-educated investors. According to a new research report from the Bank for International Settlements (BIS), these highly knowledgeable investors prefer to acquire two large-cap cryptourrencies, much more than Bitcoin. Predictably, Ethereum, the largest cryptocurrency, is one among them. The other cryptocurrency preferred by rich and educated investors was revealed to be XRP.
The global financial institution controlled by central banks investigated the behavior of bitcoin investors in this study. It has examined at the least educated, various family income levels, and what they are purchasing in addition to the highly educated. “Among the different cryptocurrencies, XRP and Ether owners are by far the most educated, while Litecoin (LTC) owners are the least educated, with Bitcoin owners in the center. Cryptocurrency owners have a greater family income than the general population, with XRP, Ether, and Stellar (XLM) owners among the richest.”
Ether and XRP, according to BIS, outperform is held in high regard than Bitcoin by most of the educated and wealthy investors. Nevertheless, Bitcoin is the most widely used cryptocurrency, followed by Ethereum and Litecoin. The growing cryptocurrency exposure was also addressed in the study.
Knowledge of cryptocurrencies has roughly increased, given the recent price spike. “While awareness of cryptocurrencies is spreading, ownership stays restricted to a small group of people. Only about 40% of Americans were familiar of at least one cryptocurrency in 2014 (primarily Bitcoin). In 2019, this number climbed to over 70%.”
The surge in interest in Ethereum is unsurprising, given the network’s positive review by from market leaders and organizations. The network has established itself as one of the go-to platform for developers. Additionally, the network has showed remarkable resiliency in the face of years of threats from so-called “Ethereum killer” networks.
The SEC has claimed that XRP was distributed as a security, posing a significant danger to the token in recent months. With court proceedings still underway, many XRP investors believe Ripple will triumph, causing XRP prices to skyrocket.