The rich also feel the pain: The problems of crypto billionaires

Let’s discuss a crypto phenomenon today and understand why the path from crypto to fiat billionaire is not always straight.

A crypto billionaire is someone who holds $1 billion worth of crypto. You’d think they just have to sell their tokens and become regular billionaires, right? But in reality, it’s not that simple.

With such a desire, our billionaire will immediately face difficulties:

1. Market liquidity

If you decide to sell all your crypto assets at once, it will almost certainly cause the price of your coin to drop. And because of this drop, you won’t get $1 billion. What’s more, if you’re holding a not-so-popular asset, there may simply not be enough liquidity in the market (and you’ll crash the price to zero).

2. Regulatory concerns

Cryptocurrencies are not yet fully legalized in many countries, so turning them into fiat money can be difficult or even impossible.

3. Taxes

When you sell your cryptocurrency, it is considered a taxable transaction in most countries. Depending on the country, taxes can eat up a pretty huge chunk of your assets—easily 15%, 20%, or 30%.

Crypto billionaires aren’t exactly billionaires—at least not until mass crypto adoption happens, and they won’t be able to pay with crypto on par with fiat money.

Let’s sympathize with these unfortunate people together😂
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