In this article, we discuss 10 cryptocurrencies millionaires love. If you want to see some more cryptocurrencies which are popular among millionaires, check 5 Cryptocurrencies Millionaires Love.
Cryptocurrencies and digital assets gained mainstream recognition in the pandemic years, when retail investors flocked to online assets. Platforms like Coinbase Global, Inc. (NASDAQ:COIN) and Robinhood Markets, Inc. (NASDAQ:HOOD) allowed simpler trading of cryptocurrencies, which helped ordinary people invest in digital assets.
In addition to fintech companies, semiconductor providers, and tech giants aiding the cryptocurrency movement, Goldman Sachs announced on April 2 that its wealth management division would soon offer crypto investments to private equity clients. Similarly, Morgan Stanley reported in March 2022 that it would allow clients with a net worth of at least $2 million to invest in crypto exchange traded funds. Two of the funds offered to Morgan Stanley clients are managed by Galaxy Digital, a cryptocurrency firm founded by Mike Novogratz.
According to Allied Market Research, in 2020, the global cryptocurrency market was worth $1.49 billion, and it is forecasted to expand to $4.94 billion by 2030, increasing at a CAGR of 12.8% from 2021 to 2030. While the interest in cryptocurrencies from retail and institutional investors has been strong, there are millionaires and billionaires who have touted their crypto assets in interviews and tweets, fully participating in the market hype. Some of the richest crypto holders are Elon Musk, Tim Cook, Bill Miller, and Mark Cuban, among others.
We selected the cryptocurrencies which have gained the most interest from millionaires around the world. The details of each cryptocurrency are mentioned along with the millionaire who endorses them, in addition to a discussion around notable companies working in the sector to provide readers with some context for their investment decisions.
Cryptocurrencies Millionaires Love
Dogecoin is an open-source digital currency that was created by Billy Markus and Jackson Palmer as a joke back in 2013, given the hype around cryptocurrencies at the time. Dogecoin is the first “dog coin”, with a Shiba Inu breed as its logo. It was also the first meme coin to be circulated.
Dogecoin operates differently from the proof of work protocol employed by Bitcoin. Dogecoin has a block time of one minute and investors can mine an unlimited supply of the altcoin.
Dogecoin has received tremendous backing from Elon Musk, the billionaire chief of Tesla, Inc. (NASDAQ:TSLA). Musk has proclaimed himself the “Doge father” and his tweets in support of the coin have sparked interest in the currency time and again. Dogecoin became mainstream when Elon Musk started tweeting about it in the beginning of 2021, and the billionaire yields tremendous power over the coin, calling it his “favorite coin” repeatedly. Musk recently stated that he would be interested in an open-source social network backed by cryptocurrencies like Dogecoin since social media platforms seem to be restricting free speech.
Cryptocurrencies like Dogecoin are gaining mainstream recognition via companies like Twitter, Inc. (NYSE:TWTR), a social networking and microblogging platform. People often post their gains from Dogecoin on Twitter, which continues to increase the circulation and hype of the currency. In the fourth quarter of 2021, 83 hedge funds were bullish on Twitter, Inc. (NYSE:TWTR), compared to 94 funds in the earlier quarter. Cathie Wood’s ARK Investment Management is the biggest shareholder of the company, with 17.2 million shares worth $745.3 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), elite hedge funds hold large stakes in Twitter, Inc. (NYSE:TWTR).
Here is what RGA Investment Advisors has to say about Twitter, Inc. (NYSE:TWTR) in its Q4 2021 investor letter:
“Twitter had an eventful quarter. The company started the year seemingly ready to fly for the first time as a public company. Consensus estimates for 2023 revenue started the year at barely north of $5b and by the end of the year were just shy of $7.5b, a target the company offered at their first investor day in years. Unfortunately, it was a second target offered at that same investor day that did them in: 330 million mDAUs by the end of 2023. Typically stocks follow revenues, but mDAUs became the noose around the stock, and perhaps even Jack Dorsey’s tenure as CEO. With each quarter reported following the investor day, the mDAU target became increasingly harder to achieve as the user base grew below the run-rate required to get there in straight-line fashion. Although the company stated this would happen, investors were left wondering how an already lofty target could be achieved with a higher hurdle. Importantly, however, the revenue target continued to look increasingly achievable with each passing quarter. Taking a step back, people came into the year convinced Twitter had a monetization problem, but exited the year focused on their user base growth.
As always, the Street is incredibly myopic about the company, but we are far more sanguine. The user base will exit the year growing at what we thought was a more appropriate quarterly run-rate (6-7 million quarterly new users), consistent with the acceleration that began before the COVID induced bump in Q1-Q2 of 2020. As it stands today, Twitter is trading near its lowest multiples as a public company (on both EV/S at ~4.5x forward and EV/EBITDA at ~18x), at a time when it will report its fastest growth rate as a public company and over the next two years is expected to report two of its next three fastest growing years. Altogether, the years 2021-2023 should be the company’s fastest three-year CAGR period by a lot, meanwhile the last time Twitter traded at multiples this low was in 2017 when revenue actually contracted 3.41% during the year. There is little that can actually justify such a disconnect where the company’s growth is as swift as ever, but its multiple is consistent with negative growth periods. Twitter remains drastically under monetized, has a long runway of opportunity ahead on both the user growth side and monetization, and has optionality in pursuing subscription, data and/or service extensions of the core offering.”
Avalanche is one of the fastest decentralized, low-cost, and environmentally friendly platforms that offer smart contracts. The platform was launched in September 2020, and has a global community of more than 1.5 million members. The native currency of Avalanche is AVAX. The token has a market capitalization of over $26 billion.
Olaf Carlson-Wee is an American millionaire who heads Polychain Capital, a cryptocurrency hedge fund that manages billions of dollars in assets for its clients. His hedge fund in September 2021 helped raise $230 million for Avalanche, and the platform will use the funding to create a decentralized finance enterprise and multiple applications on the Avalanche blockchain.
JPMorgan Chase & Co. (NYSE:JPM) is one of the biggest American multinational financial services companies. Its adoption of digital currencies, blockchains, and creating the JPM Coin has helped with the credibility of cryptocurrencies. Among the hedge funds tracked by Insider Monkey, 107 funds placed long bets on JPMorgan Chase & Co. (NYSE:JPM) at the end of December 2021, up from 101 funds in the previous quarter. Fisher Asset Management is the biggest stakeholder of JPMorgan Chase & Co. (NYSE:JPM), with 7.4 million shares worth $1.17 billion.
Here is what Ariel Investments has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:
“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.
“In our view, inflation will not just be a 2021 phenomenon.”
Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”
EOS is a platform that allows developers to create decentralized applications, making it easier to adopt blockchain technology. The EOS platform delivers greater scalability and focuses on enhanced customer experience. The platform was designed by a company called Block.one, and its white paper was written by Daniel Larimer and Brendan Blumer. EOS is the token that drives the EOS blockchain network. There is a total supply of 1.02 billion tokens.
Peter Thiel, a German-American billionaire entrepreneur and venture capitalist, who made his fortune via angel investments in SpaceX, Airbnb, Inc. (NASDAQ:ABNB), and Stripe, is now backing Block.one and EOS.
One of the companies that has made the crypto universe more mainstream in the current market is Alphabet Inc. (NASDAQ:GOOG), the tech giant who is looking to contribute towards Web3 and blockchain-based products.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 158 funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG), worth $36.6 billion. Chris Hohn’s TCI Fund Management is the leading shareholder of the company, with an $8.5 billion stake.
“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow in the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”
7. Shiba Inu
Shiba Inu was created in 2020 by an anonymous group called “Ryoshi”. The coin has widely been characterized as a meme coin, and it is also dubbed as the “Doge Killer”. Shiba Inu’s proof-of-work blockchain is presently transitioning to a proof-of-stake mechanism.
While Dogecoin runs on a Scrypt-based mining algorithm, Shiba Inu operates on the Ethereum blockchain. Shiba Inu has a local community of artists and investors, who frequently purchase and trade the coin and create NFTs that are dog-themed. Ryoshi’s vision for Shiba Inu is to operate as a truly decentralized platform, with no set leadership. He aims SHIB to become a global currency that can be exchanged for payments and used as a digital store of value.
The coin gained mainstream recognition upon the endorsement of Vitalik Buterin and Elon Musk. Vitalik Buterin is an Ethereum co-founder and a Russian-Canadian programmer, with a net worth that exceeds $1 billion. Buterin was awarded about 50% of the total supply of Shiba Inu coins. He burned about 90% of the supply he owned in May 2021, which was worth over $6 billion at the time. The remaining 10% of the Shiba Inu coins, valued at over $1 billion, were donated to the Indian COVID-19 relief fund by Vitalik Buterin. He stated that he gave away the coins because he did not want “to be a locus of power”, indicating the underlying strength of the SHIB currency.
NVIDIA Corporation (NASDAQ:NVDA) is an American supplier of semiconductors and graphics chips that are utilized in processing transactions on blockchain networks. NVIDIA Corporation (NASDAQ:NVDA) has improved mining capacity across several companies and helped with widespread crypto adoption.
The fourth quarter database of Insider Monkey suggests that 110 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), up from 83 funds in the earlier quarter. Israel Englander’s Millennium Management owns a prominent stake in the company, with 3.8 million shares worth $1.14 billion.
Here is what Vulcan Value Partners Large Cap Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2021 investor letter:
“NVIDIA Corp. was a material contributor during the quarter. We have discussed NVIDIA at length in previous quarters. Its products are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and now, the Metaverse. The company continues to outperform expectations, growing its revenue and free cash flow significantly throughout 2021, and in turn, its value is compounding quickly.”
Polygon is a platform backed by the Ethereum blockchain that allows developers and programmers to create a wide range of applications. Polygon’s unique feature is to transform a basic Ethereum blockchain into a multi-chain system, commonly known as the internet of blockchains. The native token of Polygon is MATIC, which oversees governance and transparency on the platform, in addition to being used for payment services. Polygon enables 65,000 transactions per second, allowing block confirmation time of less than two seconds.
Mark Cuban is an American billionaire entrepreneur and media personality with a deep interest in the crypto universe. He has gone on record to say that Polygon is destroying all altcoins, and is a strong crypto play apart from Bitcoin and Ethereum. Mark Cuban made a sizable investment in Polygon last May, and the Cuban-backed crypto boasts 2.67 million monthly active users who carry out roughly 3 million transactions on a daily basis.
PayPal Holdings, Inc. (NASDAQ:PYPL) is an American multinational financial technology firm that has enabled users to make payments with some cryptocurrencies. PayPal Holdings, Inc. (PYPL) also allows its customers to purchase, hold, and sell cryptocurrencies via its platform, which further legitimizes digital assets among retail and institutional investors alike.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a favorite fintech stock on Wall Street. In Q4 2021, Terry Smith’s Fundsmith LLP held a prominent stake in the company, with more than 13 million shares worth $2.45 billion. Overall, 110 hedge funds were bullish on the stock at the end of December 2021.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a notable contender in the crypto universe, just like Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA).
Here is what RGA Investment Advisors has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2021 investor letter:
“Stocks move with far more volatility to both the upside and downside than do the businesses themselves. Great businesses often go long periods of time without moving at all in the market, and then make large moves in very sudden fashion. Some people may try to anticipate exactly when these large moves will happen, but we think that is far more akin to astrology than sound business analysis…
We have owned shares in PayPal since the company was spun off from eBay in 2015. In aggregate, price has moved upward, quite powerfully during our tenure; however, this upside was essentially achieved in two somewhat brief pulses that cover less than half of our tenure with the stock. The rest of the time, prices chopped around in ranges. These ranges are periods of tension, where the fundamentals continue to chug along but the stock price must digest. Some periods of tension are fairly quiet, while others include both steep up and down moves along the way. Some end up being brief resets, others might persist for two plus years. The key underlying truth is that if the business remains sound, and in the case of PayPal, we think it is incredibly sound, the journey of rising stock prices will once again resume when the stock is ready. We are not market timers and thus cannot be sure as to when a stock might be ready, but value is inevitably the force that operates on a company’s stock and that force cannot help but exert its will over longer periods of time.
Thus, as we sit here today, a new year brings new opportunities, and the forward return profile of our portfolio looks as strong as it has been in some time.”
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Disclosure: None. 10 Cryptocurrencies Millionaires Love is originally published on Insider Monkey.