This is what you need to know about Proof of Work in Cryptocurrency
28.06.2022
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Proof of Work (PoW) is a system, which needs a feasible amount of effort in…
The Legendary Cryptocurrency Investors of our Time
Cryptocurrency is fast gaining space as a household concept and people fancy identifying with it either as a show of modernity or a chase for its great possibilities. To some, cryptocurrency can be best compared with a casino where people just play or gamble while others consider it a great investment option. One thing that can’t be ignored in the perspectives of either side is that cryptocurrency has so much to do with wealth if not big money. The testament to this is the high number of cryptocurrency investors who trace their fortunes to that critical decision they made to buy the first bitcoin or an altcoin for that matter.
WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.
You will agree with me that cryptocurrency has opened space for all and people in the remote villages just like those in the city can make a try. Something that we must all agree to is that there are the quintessential legends who ventured into crypto and have literally grown with it. It is from their successes and failures that crypto starters learn. Isaak Newton in his letter to fellow scientist Robert Hooke wrote, “If I have seen further, it is by standing on the shoulders of giants” which holds true for newbies in crypto. So it’s good service to identify and eulogize the present legends in crypto.
Setting the pace about current crypto legends
Online forums, social media, the media and personal conversations have recently had one topic in common; cryptocurrencies. The buzz has only been made worse by the incessant advancement in technology and increasing popularity. However, despite this tremendous growth, elite investors remain divided over whether they create an opportunity or pose a challenge. This sometimes may be confusing and leave starters guessing which way to go about crypto.
While economists like Paul Krugman and Warren Buffet have described them as a mirage, others including Marc Andreessen remain positive about crypto. Marc Andreessen has even gone as far as likening the adoption of cryptocurrency to that of the internet. Well, good or bad, cryptocurrency has democratized and revolutionized finance significantly.
Why are Investors Focusing on Cryptocurrencies?
Cryptocurrencies have no value of their own (what may be technically called intrinsic value). Without this inborn value in crypto, one would be left wondering the logic behind the rush for cryptocurrency investment. Investors are most attracted to cryptocurrency because it has a speculative element. Speculation offers investors a chance to earn from market value changes. Subsequently, it gives investors a geopolitical hedge since political uncertainty increases cryptocurrency prices.
However, investing in cryptocurrency entails a lot of risk because it is very volatile. Elite investors have warned of a possible cryptocurrency market collapse. In such a case, retail investors are likely to be the most affected. Nevertheless, a drop in the market value is not likely to affect the creditworthiness of most banks.
Top Cryptocurrency investors Worldwide
Of all cryptocurrencies, Bitcoin remains the favourite of most speculative investors and crypto enthusiasts. If current statistics are anything to go by, as the popularity of cryptocurrencies increases, so does the number of crypto billionaires. Most of these people have made money through investment in crypto volatility.
Sam Bankman Fried
To start with, Sam Bankman-Fried is the founder of FTX which is ranked among the top crypto exchanges in the world. Sam is not only considered a crypto leader but has also managed to gain many followers in the crypto world as well as the respect of crypto elites. Further, he and his company are highly regarded and respected among crypto enthusiasts.
FTX has grown tremendously over the years majorly through innovation and differentiation. The company has managed to stay ahead by securing businesses from entities such as Sequoia Capital and Coinbase’s venture arm. Its investors include Super Bowl Champion Tom Brady among others. Forbes estimated his total net worth at $26.5 billion.
Brian Armstrong
The legendary Brian Armstrong founded North America’s largest crypto exchange known as Coinbase. Coinbase has the largest trading volume according to Forbes Magazine. Today, Armstrong owns approximately 19% of the company. It has managed to stay ahead of its competitors by offering a simple and user-friendly interface. Similarly, the company focuses on ensuring credibility.
Coinbase focuses on retail investors by giving easier and simple options to join the crypto sector. In April 2021, Armstrong and his partners took Coinbase public and managed to close trading with a market capitalization of $41.736 billion. Forbes estimated Armstrong’s net worth at $10.4 billion while Bloomberg estimated it at $9.69 billion.
Changpeng Zhao (CZ)
Changpeng Zhao (CZ) is a name that nobody can ignore in the crypto-world, thanks to his company Binance. Binance has been lauded by many as the biggest crypto exchange (trading volume) in the world. Zhao’s significant wealth has been attributed to his personal crypto holdings. He is also known for Binance Coin, which his company uses for transactions.
According to Zhao, he first encountered Bitcoin during a poker game with his friends. Subsequently, he went on a cryptocurrency rampage and is reported to have sold an apartment for Bitcoin in 2014. Today, Zhao’s company transacts billions of dollars daily which is more than Coinbase, its main competitor. Bloomberg has estimated his net worth as $96 billion.
Tyler and Cameron Winklevoss
You have probably heard of Tyler and Cameron Winklevoss from their lawsuit against Facebook. The two surprised many veteran investors when they ventured their earnings from the suit into cryptocurrencies. However, they were lucky because the prices of Bitcoin rose significantly in 2017. As a result, today they are well-known in the crypto sector as the first billionaires in those cycles.
The twins are so invested in cryptocurrencies that a significant amount of their wealth stem from cryptocurrency investments. They are also known for founding the Gemini cryptocurrency exchange. The twins’ net worth has been estimated by Forbes as $5 billion each. Investment sources also report that in November 2021, Gemini cryptocurrency exchange’s value was $7.1 billion.
Michael Saylor
Michael Saylor is an unconventional investor known as the CEO of software firm MicroStrategy Inc. (MSTR). Many investment elites have acknowledged his enthusiasm and zeal for cryptocurrency. He has been a passionate Bitcoin-advocate in many forums emphasizing its benefits and uses.
It therefore, comes as no surprise that under his watch MSTR has acquired millions in cryptocurrency from 2020. The company’s strategy in Bitcoin acquisition entails buying millions of it whenever the price hits a new low. Its Bitcoin holdings were estimated at $3.5 billion in 2021 up from $250 million in 2020. Subsequently, the price of its stocks rose by more than 337% after it acquired the Bitcoins. According to Forbes, Saylor’s net worth is $2.2 billion thanks to his Bitcoin holdings.
Barry Silbert
Barry Silbert’s journey in the crypto-world began in 2012 when he staked a chunk of his money in the sector. The optimistic drive for Silbert was that cryptocurrencies would change the financial sector significantly. He went a step further by founding the Digital Currency Group which is a cryptocurrency venture fund.
Today, Silbert’s parley continues to pay off as he has captured a piece of every crypto sector. Digital currency group has made significant investments in news (CoinDesk), data (CoinMetrics), exchanges (Coinbase) and payments and stablecoins (Circle.). Similarly, on his watch, Grayscale Investments has transformed into the largest digital asset manager in the world. Grayscale Investments provide trusts through which various entities can enter the crypto market.
Elon Musk
Elon Musk is famously known as the founder and CEO of Tesla. He has been a crypto champion on several platforms including social media sites like twitter. Cryptocurrency elites have linked his tweets to crypto market changes over the past year. Furthermore, through his company Tesla, he has purchased cryptocurrencies such as $1.5 billion bitcoin.
Musk’s advocacy for cryptocurrency has only been made more apparent with his company’s move to accept Bitcoin as a mode of payment. However, when Bitcoin’s value dropped by half, Musk changed his opinion on cryptocurrency. Nevertheless, he is still considered a major cryptocurrency champion worldwide. He has garnered a huge following and major respect among crypto fans and investors.
