The Crypto Elite’s Obsession with Private Islands

The motivations behind buying a private island vary, but most buyers share a desire to create their own paradise, where pristine beaches, lush jungles, and vast ocean views become part of a private sanctuary. Owning a private island (or property on one) offers unparalleled privacy, freedom, and a powerful status symbol. This fascination with islands, known as “Islomania,” has become a way to make a bold statement and join the ranks of an exclusive elite who have turned this dream into reality. 

Today, we’ll explore the world of crypto millionaires who are buying exclusive private islands, where limitless freedom, advanced technology, and digital privacy define the lifestyle.

Bequia Island

Bequia Island in the Grenadines is a prime example of crypto-driven luxury living. In 2021, 34-year-old developer and crypto enthusiast Storm Gonsalves launched an ambitious project to create the world’s first private community designed specifically for the crypto elite.

He developed 39 luxury villas (most of which are already sold) along with a full suite of amenities, including bars, shops, restaurants, a private club, a gym, and even a private cinema. What makes this seven-mile stretch of Bequia Island truly unique is the ability to pay for real estate, goods, and services using a variety of cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, and Dogecoin.

Gonsalves highlights that despite the high price tags (from £670,000 to £1.6 million), many crypto investors view this project as a strategic way to diversify their wealth by converting digital assets into physical real estate. He also points out that the global cryptocurrency market is valued at approximately $3 trillion, making it a lucrative opportunity that forward-thinking developers can’t afford to ignore.

The One Bequia project is designed to attract both permanent residents and seasonal vacationers. Buyer identities are kept strictly confidential, and the island's tight security ensures privacy from prying paparazzi.

However, not all such ventures have been successful. In many cases, even vast wealth and powerful connections aren’t enough to guarantee the success of private island projects.

Peter Thiel’s Dream That Never Took Off

In 2008, PayPal co-founder Peter Thiel set out to create a floating island free from the constraints of traditional nation-states. His vision was to build a society where people could live without political pressure or bureaucratic interference.

The idea of seasteading—living in autonomous floating communities on the open sea—was inspired by Patri Friedman, a former Google engineer. He proposed the concept of floating islands located in international waters, beyond the reach of any existing government. In 2008, the Seasteading Institute was founded to turn this ambitious vision into reality.

However, many in Silicon Valley were skeptical of this initiative, viewing it as too expensive, overly complex, and ultimately accessible only to the ultra-wealthy. These doubts proved justified: by 2013, the crowdfunding campaign had raised just $27,000—a tiny sum for such an ambitious project. Three years later, Peter Thiel distanced himself from the project, admitting in an interview that the idea was far more complicated and costly to execute than he had anticipated.

Despite this setback, a dedicated team of enthusiasts continued to pursue the vision of building an autonomous floating community in the Pacific Ocean until 2018. However, they faced numerous legal challenges that ultimately hindered progress.

For the floating community to achieve full independence, it needed to be located at least 200 nautical miles (about 370 km) from the nearest shore, placing it outside the jurisdiction of any country. However, this level of isolation significantly increased construction and logistical costs. Estimates indicated that building the first floating platform would require approximately $225 million, with annual maintenance costs reaching around $8 million. 

To make the project more feasible, the team decided to collaborate with existing governments to reduce expenses.

The most promising partner turned out to be French Polynesia—a group of islands in the South Pacific under the jurisdiction of France. The seasteading team proposed two settlement designs to local authorities: modular platforms powered by solar panels and wind turbines, or a larger horseshoe-shaped structure. The community was designed to house up to 250 residents, who would have easy access to the mainland via a small ferry.

Under the proposed agreement, French Polynesia would not interfere with the governance of the new community or impose taxes. In exchange, the residents would agree to follow local criminal and environmental laws. The project was to be funded by private investors and future residents.

However, the project faced strong public opposition. Authorities in Tahiti, the largest island in the region, raised concerns that the initiative was a form of “technological colonialism.” In early 2018, the French Polynesian government announced that the preliminary agreement with the Seasteading Institute was void, officially ending the project.

As a result, the dream of an independent floating nation never became a reality. However, the concept of seasteading has caught the interest of Russian investors, who are known for their flexible interpretation of international laws.

Crypto Russian World

One of the most ambitious seasteading projects is “Crypto Russian World,” envisioned by Russian entrepreneurs Kir Belyaev and Pavel Gromov. They plan to build an artificial island covering 300 square kilometers (!!!), located 370 km off the coast of California in international waters. The floating city is designed to accommodate up to one million residents, with construction expected to begin in 2025. Uniquely, the city will be shaped like the Bitcoin logo, and all transactions will be conducted exclusively in cryptocurrency. The project also includes futuristic innovations, such as 3D food printers and solar-powered ferries.

Gromov and Belyaev aim to transform the island into a global center for neurotechnology, featuring the world’s first clinics and laboratories equipped with Neuralink devices for brain chip implants. To achieve this ambitious goal, they plan to seek direct support from Elon Musk. They also promise to cover large areas of the floating island with evergreen forests, install solar panels on every rooftop, and make property purchases and rentals accessible to all cryptocurrency holders.

There’s little doubt that Russia could find a million spies willing to relocate closer to a strategic rival’s shores. However, the U.S. government’s response to these ambitious plans remains to be seen.

However, the projected budget of around $1.6 billion has raised doubts, suggesting that the project could be a large-scale cash grab, with no floating city ever materializing off the coast of California.

MS Satoshi

Another noteworthy project is MS Satoshi, which aimed to create a private crypto community aboard a former cruise ship. In 2019, a group of aspiring seasteaders, Grant Romundt, Rüdiger Koch, and Chad Elwartowski, purchased the 245-meter cruise ship Pacific Dawn and rebranded it as MS Satoshi.

The idea behind MS Satoshi was to create a “floating city” for crypto investors, traders, and digital nomads, where cryptocurrency could be used for everyday transactions. The ship was planned to feature residential apartments, office spaces, restaurants, and conference facilities.  

However, the ambitious project faced major challenges. The high operational costs of maintaining the cruise ship were overwhelming, with annual maintenance alone estimated at over a million dollars. Moreover, international maritime laws and national regulations cast doubt on the feasibility of establishing a floating sovereign state. Bureaucratic hurdles and difficulties in securing the necessary permits significantly delayed the project’s progress.

The biggest hurdle for MS Satoshi was the inability to secure insurance. No insurance provider was willing to cover a cruise ship that didn’t fall under any national jurisdiction. This left the owners and residents financially vulnerable in case of accidents or unforeseen events.

As a result, after completing two trial voyages, MS Satoshi was permanently docked in a Panamanian port—likely never to set sail again.

Risks and Challenges of Building Crypto Islands

While the idea of owning a private island, especially through crypto initiatives, is enticing, it comes with several significant challenges. 

Key risks include:

1. Legal and Tax Complications

Many countries impose strict regulations on private island ownership, and some require high taxes even for autonomous communities.

2. Infrastructure Limitations

Providing essential services like fresh water, energy, and medical care on a remote island demands substantial investment. In some locations, these challenges may be insurmountable.

3. Political Instability

Some islands are under jurisdictions with unstable or authoritarian governments, which could result in property confiscation or sudden changes in ownership laws.

4. Cryptocurrency Volatility

If the project is funded through cryptocurrency, price volatility could threaten its financial stability and long-term success.

The rising number of crypto millionaires is driving increased demand for private islands. 

According to a 2024 report by Henley & Partners, the number of people with crypto assets worth over $1 million surged to 172,300 globally, marking a 95% increase compared to the previous year. This rapid growth is sparking interest in exclusive real estate investments, including private islands and floating crypto cities.

However, despite the allure, bringing these projects to life requires meticulous planning, legal compliance, and significant financial investment.