Week in review: BlackRock CIO on crypto, NFT sells for record $142K, CBDCs are commercializing and Bitcoin’s new group of investors
Weekly news for November 16 to 22 of 2020:
- The CIO of BlackRock, the world’s biggest asset management firm, shares his positive views on crypto
- NFT painting that changes each day sold for a record 260 ETH ($141,536)
- Banks are adopting digital currencies in commercial implementation
- Bitcoin’s growth attracting a new group of buyers
BlackRock CIO: “Bitcoin is here to stay”
What: In a CNBC interview, BlackRock’s CIO Rieder commented that Bitcoin has the real potential “to replace gold to a large extent”. He also notes how Bitcoin is “here to stay” given the millennial’s general openness for digital payments.
Why it matters: A positive outlook on Bitcoin by the world’s largest asset manager with $7.4 trillion AUM adds much significance to the larger narrative of Bitcoin’s increasing acceptance. Bitcoin is no longer just hype— it’s becoming a real asset class among global financial institutions.
What if your painting evolves every day? NFT sells for a record $141,536
What: A digital NFT painting named “EthBoy” was sold for a record 260 ETH ($141,536), released on the blockchain-powered marketplace Async Art. The NFT changes each day based on external factors that are programmed, such as a stock price or the owner’s personal life activity.
Why it matters: NFTs are a hot use case of blockchain technology wherein ownership, transparency and portability are being redefined in art. Programmable art, in the case of Async Art, takes it one step further to demonstrate the unique possibilities of digital art built on NFT technologies.
Blockchain commercialization is no longer hype as banks adopt digital currencies
What: The global pandemic led to the sharp 28% decline in cash usage in the UK. Such influence reflects how “central banks are more intensely focused on digital currencies than ever before” as stated by the CEO of R3.
Why it matters: Central bank digital currencies (CBDCs) have already launched in nations such as China with their digital yuan. We can expect to see a stronger shift towards the development of more CBDCs, which positively advances the regulation of digital currencies in parallel.
This time it’s different: Bitcoin’s growth is driven by a new group of buyers
What: Bitcoin traded with strong momentum in the $18,000 — $19,000 range, inching closer to it’s all time high. What’s different about this rally is that institutional investors are driving the market up compared to the consumer-driven mania of the 2017 bull run.
Why it matters: The increasing coverage of Bitcoin on mainstream media such as the Wall Street Journal points to the early signs of the next major Bitcoin bull market. This time, the growth will be in large part supported by institutional and high net worth investors like the billionaires Paul Tudor Jones and Stanley Druckenmiller.
