Why Do the Rich Now Prefer Bitcoin Over Gold?

Bitcoin continues to attract wealthy investors. According to Michael Sonnenfeld, founder of Tiger21, members of his network have invested around 6 billion dollars in crypto. Discover all the details in the following paragraphs!

Bitcoin establishes itself among financial elites

Bitcoin is undeniably becoming a preferred choice for wealthy investors looking to protect their wealth. According to Michael Sonnenfeld, the members of his network collectively hold around 6 billion dollars in crypto.

Tiger21 is composed exclusively of business leaders, financiers, and entrepreneurs. This elite group manages a combined fortune of 200 billion dollars. According to data, it has allocated 1 to 3% of its wealth to digital assets. This confirms the growing appeal of the cryptocurrency market among large fortunes.

This adoption by billionaires reflects a global trend where Bitcoin is increasingly perceived as a store of value. Many indeed consider it as an asset capable of preserving wealth amid economic instability.

🚨 News: @TIGER21 founder Michael Sonnenfeldt reveals the ultra-rich investor network holds about $6 billion in digital assets, with some members going “all in” on #crypto as a gold alternative. pic.twitter.com/eILCF2BqU2

— CoinRank (@CoinRank_io) February 6, 2025

A risky bet or a solid alternative?

Historically seen as a speculative asset, Bitcoin is today viewed as a digital gold by many wealthy investors. They primarily seek sustainable and reliable investments.

The appeal of Bitcoin is notably based on its spectacular growth. In one year, the price of the flagship crypto has indeed jumped by 125%. This impressive progression reinforces the idea that the crypto market offers a credible alternative to traditional investments.

That’s not all! With a limited supply of 21 million units, Bitcoin is often compared to gold. Sonnenfeld emphasizes this comparison by stating:

“Gold is for traditionalists and Bitcoin is a little new age, but they often play the same role. They’re perceived as store houses of value (…)”

Analysis:

While gold is perceived as an ancestral refuge, Bitcoin represents a modernized version of the safe haven investment for investors looking to secure their capital.

Why is the financial elite reducing its cash holdings?

Another notable phenomenon is the decrease in cash holdings by Tiger21 members. According to Sonnenfeld, their current cash level is at its lowest in 17 years. This reduction in their dollar reserves suggests a shift in strategy: less cash, more Bitcoin and digital assets.

This evolution reflects:

• a growing confidence in the cryptocurrency market,
• a distancing from the traditional monetary system.

Inflation, currency devaluation, economic uncertainty… These are all factors driving billionaires to seek alternatives. Due to its independence from central banks, Bitcoin thus appears as an increasingly favored solution.

The growing adoption of Bitcoin by wealthy investors sends a strong message to the crypto market. The question remains whether this trend will become widespread!