Crypto Millionaires Go All Out on Spending Their Newfound Wealth

Despite market turbulence in 2018, cryptocurrency millionaires are still out in force spending their money on everything from fancy clothes, fast cars, exquisite houses, and lots of flashy jewelry. And many of them have no qualms about showing off their wealth on social media.

As the cryptocurrency market started to explode in 2017, and then experienced some rough dips in 2018 so far, lots of people have been questioning what people are actually doing with all of their money.

Some have just chosen to sell all of their cryptocurrency holdings, while others are buying when they can and are just crossing their fingers for better markets in the future.

But there are some people who, after becoming quite wealthy thanks to cryptocurrencies, are enjoying spending their money on a wide swath of worldly possessions.

Riding in Style

Lots of people love to flaunt their new riches by buying a brand-new car.

But crypto millionaires tend to skip the affordable hatchback or the reliable sedan. Instead, they choose to spend their money on gleaming luxury vehicles.

35-year old Peter Saddington was able to drive off in a 2015 Lamborgini Huracan last year after paying it for it with 45 Bitcoins, which were purchased back in 2011. He said that the purchase was “proof” that Bitcoin can be used for legitimate transactions, and not just “by criminals.”

The so-called ‘Wolf of Crypto Street,’ 18-year old Eddy Zillan, now zooms around in three luxury cars, purchased through a combination of cryptocurrency, early-stage investments, and a few dollars from his rich parents. With a portfolio worth well over $1 million dollars, Zillan now works on giving investment advice to businesses and new investors.

Status Symbols for The Rich

A mansion, (or more than one), is often the status symbol of the rich and famous. It’s no different for cryptocurrency millionaires. Back in October 2017, a Notting Hill mansion went on the market in London for £17 million (approximately, $22 million) in Bitcoin. The seller said the new occupant of the fancy crib would probably be an Asian technology entrepreneur who was familiar with the cryptocurrency.  

In April of this year, a wealthy New Yorker was open to watching his $29.95 million dollar Upper East Side townhouse be sold for either fiat, or cryptocurrencies like Bitcoin, Ether, or XRP. But those paying with crypto would have to pay $45 million due to the price volatility of cryptocurrencies.

Those with a lot of cryptocurrency to burn still have the perfect opportunity to bid on 16th century Italian Renaissance mansion with their money.  Located right in the heart of Rome, the residence was built by Renaissance architects Girolamo Rainaldi and Giacomo Della Porta.

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Joseph Lubin: Facebook's Libra Is a 'Centralized Wolf', Raises Privacy Issues

Ethereum co-founder Joseph Lubin recently published a blog post in which he claimed that Facebook’s cryptocurrency Libra is “a centralized wolf [disguised] in centralized sheep’s clothing.”

Lubin, a Canadian entrepreneur who’s also the founder of ConsenSys, a Brooklyn, New York-based Ethereum (ETH)-focused development studio, acknowledged that the Calibra project’s goal to send money quickly and cheaply should be a key design consideration of modern internet-based currencies.

Can Facebook Be Trusted?

However, the Princeton University graduate pointed out that most people would not be able to place enough trust in Facebook’s management - as he wrote:

Don’t I need to trust Facebook and other intermediaries to trust Libra?

Interestingly, Lubin also noted that the name of the social media giant, Facebook, is “hardly mentioned” in the Libra crypto project’s whitepaper or its technical documentation. Moreover, Lubin believes that Facebook’s new cryptocurrency project is “not eliminating” the need for “subjective” trust, which most decentralized currencies do. Instead, he thinks the social media firm’s crypto is “imploring us to trust in Libra.”

Merchants Must Trust the “Initial” Libra Network Will Operate “Responsibly”

Going on to allege that Facebook’s cryptocurrency wallet Calibra will “seek trust” as using it will require users to provide their government-issued IDs for verification, Lubin also pointed out:

It will need merchants to trust that their initial network will responsibly run nodes to validate transactions on the system.

Younger Users Prefer Decentralized Payment Protocols

The former VP of Technology at Goldman Sachs further mentioned that the younger generation prefers “payment systems built on truly decentralized protocols” - rather than having to verify their identify and share other personally identifiable information on centralized platforms like Facebook.

Concerns Regarding Users’ Financial Privacy

The ConsenSys founder also noted that Facebook, as a company, makes a lot of money off personal user data. Should the Libra project move further, as it is currently facing various regulatory challenges, then some of Lubin’s concerns might seem reasonable:

What happens when you wrap your personal finances up in this, too? That our digital identity will never merge with Libra’s financial data is a hard perception to shake. It is almost a given, even if they have the best of intentions—“accidents” and incursions happen when relying on centralized architectures.

Lubin went on to reveal that the developers at ConsenSys had already begun to review the source code shared by the Libra project’s creators. He claims that the technical documentation and other details released by Libra’s founders is quite similar in some ways to Ethereum, the world’s largest smart contract platform.

While admitting that Facebook’s project will (most likely) be “well executed, technically”, Lubin remarked:

As of today, Libra has made a bold promise, and it’s one that Facebook needs to keep. Until then, Libra is like a centralized wolf in a decentralized sheep’s clothing.