Forbes magazine, known for making lists of the wealthiest people globally, published the first billionaires in cryptocurrencies. According to the list, Chris Larsen, founder of bitcoin’s rival Ripple virtual currency, is the wealthiest person in virtual currencies, with 8 billion dollars. The list includes names like former Goldman Sachs executive Joseph Lubin or the Winklevoss twins, who accused Mark Zuckerberg of stealing their Facebook idea. On Thursday (8), the quotation of bitcoin was approximately 8,500 dollars.
Cryptocurrencies emerged in 2009, and it is estimated that only a small group that has participated since their creation holds most of the wealth. However, it was introduced as a model that would democratize the financial system. According to the list Forbes published on Wednesday, there are 19 billionaires in digital currencies. However, it is a very volatile market. Without going any further, this week, the price of bitcoin plummeted more than 30%, reaching values below 8,000.
When Forbes published the ranking — based on quotes as of January 19, 2018 — Chris Larsen was leading, with an estimated wealth of around $8 billion. However, when ripple peaked that same month, his wealth exceeded $60 billion, making him richer than Mark Zuckerberg, the creator of Facebook. According to the business magazine, the volatility of the daily cryptocurrency quotation in January 2018 was 10.25% in bitcoin, 12.62% for ether, and 16.75% for ripple. Values like gold have less than 1% volatility.
Forbes’ list shows that almost everyone who appears in the rankings participated in the founding of digital coins or was involved with them for years. Furthermore, it draws attention to the profile of those that make a list: they are all men and, unlike the list of wealthiest people in America Forbes, the average age is 42 and not 67. To enter the ranking, you must have over 350 million dollars in cryptocurrencies.
Larsen is followed by Joseph Lubin, a former executive of Goldman Sachs and co-founder of Ethereum, a platform based on the blockchain. Forbes points out that Lubin has a wealth of virtual currency worth between 1 and 5 billion dollars. The magazine estimates the numbers in bands because it is difficult to pinpoint an exact amount. It is unnecessary to reveal identity when purchasing cryptocurrencies. Many owners do not offer proof of their wealth or prefer not to expose themselves for security and privacy reasons. “We base our numbers on cryptocurrency portfolio values (some have proven their wealth), after-tax profits from crypto bonds exchange, and stakes in digital currency-related businesses,” explains Forbes in the article.
The list of the top five is completed by Changpeng Zhao, chief executive of the cryptocurrency purchase and sale platform Binance (between 1.1 and 2 billion dollars); the Cameron & Tyler Winklevoss twins, with a total of between 900 million and 1.1 billion dollars in digital coins; and Matthew Mellon, an independent investor, and heir to BNY Mellon, one of the enormous banking fortunes in the US. Forbes estimates it holds a total of between 900 million and 1 billion dollars in cryptocurrencies.
There are around 1,500 different types of cryptocurrencies with an approximate value of 550 billion dollars, 31 times more than at the beginning of 2017. This type of currency finds part of its demand in the black market or evasion of taxes. Therefore, it acquires new enemies every day: market regulators of European and North American stock exchanges and even governments of different countries, such as China. However, bitcoin was born after the crisis as part of a libertarian ideology that distrusted authorities such as central banks responsible for ensuring the stability of currencies.
List of Digital Currency Billionaires
Chris Larsen: The 57-year-old co-founder of the Ripple cryptocurrency has an estimated wealth of between 7.5 and 8 billion dollars.
Joseph Lubin: the 53-year-old Goldman Sachs executive and co-founder of Ethereum (a platform based on the blockchain ), has cryptocurrencies with a value between 1 and 5 billion dollars.
Changpeng Zhao: 41-year-old chief executive of Binance (cryptocurrency buying and selling platform) accumulates a fortune between 1.1 and 2 billion dollars
Cameron & Tyler Winklevoss: The 36-year-old twins, owners of the Capital, have a total of between 900 million and 1.1 billion dollars in digital coins.
Matthew Mellon: The 54-year-old investor and heir to one of the most extensive banking fortunes in the US (BNY Mellon) have between 900 million and 1.1 billion dollars.
Brian Armstrong: With a total of between 900 million and 1 billion dollars, Armstrong, founder of Coinbase, is at number 6 in the ranking, at age 35.
Matthew Roszak: The 45-year-old founder of Tally Capital and co-founder of Bloq has between 900 million and 1 billion dollars in digital currency.
Anthony Di Iorio: The 43-year-old co-founder of the blockchain platform Ethereum has between 750 million and 1 billion dollars in cryptocurrencies.
Brock Pierce is also a co-founder of Ethereum and other digital currency platforms. Pierce has a cryptocurrency wealth of between 700 million and 1 billion dollars at age 37.
Michael Novogratz: Before the crisis, Novogratz was on Forbes’ millionaire’s list in 2007. However, he returned to amassing a fortune with micro currencies. At age 53, he is estimated to have wealth between 700 million and 1 billion dollars.
Brendan Blumer is the chief executive of Block.One, a blockchain company. At the age of 31, he has between 600 and 700 million in cryptocurrencies.
Dan Larimer: Also part of Block.One, Larimer is 35 years old and has between 600 and 700 million in digital coins.
Valery Vavilov: Co-founder and chief executive of Bitfury, a bitcoin prospecting company, Vavilov has between $500 and $700 million at age 38.
Brad Garlinghouse: Ripple’s chief executive, 47, accumulates a total of between 400 and 500 million dollars in digital coins.
Barry Silbert: At 41, with a wealth of between 400 and 500 million in cryptocurrencies, Silbert is known for creating Second-Market, an asset exchange company.
Vitalik Buterin: 24 years old is the creator of Ethereum and has a fortune of between 400 and 500 million dollars in cryptocurrencies.
Tim Draper: The 59-year-old founder of Draper Associates has a total of between 350 and 500 million dollars;
Song Chi-Hyung: Founder of Upbit, which is just four months became South Korea’s largest cryptocurrency broker. At 38, Chi-Hyung has between 350 and 500 million dollars.
Source: Forbes Magazine
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