Why This Crypto Billionaire Plans To Only Keep 1% Of His Earnings

Alameda’s huge successes motivated Bankman-Fried and his colleagues to build FTX, a Bahamian-based cryptocurrency platform for people who want to buy and sell cryptocurrencies. The platform made him one of the richest people in the world. In 2022, Forbes estimated his personal wealth to be $21.2 billion.

One of the intriguing aspects of the young crypto billionaire is his commitment to only keep 1% of his earnings or $100,000 a year, and give the rest away (via Bloomberg). His philosophy is best described as “effective altruism.” This type of thinking aims to better the world and help as many people as possible using rationale and evidence. For him, his giving philosophy started long before FTX. At his first Wall Street job he gave away half his salary to charity. athe MIT graduate gave $50 million to pandemic-related causes and AI research (via Bloomberg). He also donates to other causes such as climate change and space research. In 2022, he has plans to give away up to $1 billion (via The New York Times.) He is also reported to have given millions of dollars to Biden’s political campaign.

By a billionaire’s standards, Bankman-Fried is seemingly modest. He drives a Toyota Corolla and is often dressed in shorts and a t-shirt. He told Bloomberg, “You pretty quickly run out of really effective ways to make yourself happier by spending money,” he said. adding, “I don’t want a yacht.”