Cryptocurrencies

• [New] Bitcoin could reach $1 million over the next ten years if the digital asset overtakes gold as a store of value.
• [New] The SEC will focus on whether investments in digital assets, or cryptocurrencies, are in the best interest of investors, among other fintech issues.
• [New] Bitcoin could be at the start of a massive transformation into the mainstream of finance, a major report from Citi has said, and could even become the currency of global trade.
• [New] The energy wasted by plugged-in but inactive home devices in the US alone could power bitcoin mining for 1.8 years.
• [New] BNY Mellon is the first global bank to announce a structure that will support cryptocurrencies and allow them to flow through its financial network.
• [New] While the Bitcoin investment is a sideshow for Tesla, it's clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months.
• [New] 30% of Americans believe bitcoin / cryptocurrencies will be an attractive investment in 2021, making it two times more popular than gold and the fourth most selected asset.
• [New] Using Bitcoin as a corporate treasury asset is only expected to grow, with some bitcoiners suggesting that as many as half the S&P500 will hold bitcoin in their balance sheet before the end of 2021.
• [New] The increase in interest rates and cryptocurrencies is an emerging trend that will continue the rest of the year.
• [New] Both Bitcoin and gold could be more characterized as risk rather than safe assets based on their behavior over the past year and investors' preference for them is likely more of a reflection of a need for an alternative currency rather than a need for a safe asset or hedge.
• [New] Bitcoin will be very volatile for a very long period of time, but with what's occurring with central banks, its attraction is based on macroeconomics.
• Once passed, the Reserve Bank of India will join a growing list of central banks across the world that are seriously exploring the introduction of a Central Bank Digital Currency, or CBDC.
• Increasing interest in bitcoin, coupled with all-time high prices, does not pose a threat to the U.S. dollar as the world's reserve currency.
• A good example would be a jump in Bitcoin price when Elon Musk announced that Tesla has bought $1.5 billion dollars in Bitcoin, as Tesla will now accept payments in Bitcoin.
• Bank of New York Mellon, the oldest bank in the US, said earlier this month that it will begin financing bitcoin and other cryptocurrencies.
• Tesla invested $1.5 billion in bitcoin, and Mastercard said it will integrate cryptocurrencies into its payment network later in 2021.
• Bank of New York Mellon, the world's largest custodian bank and the US' oldest, said it would be soon providing its clientele with an opportunity to store bitcoin and other cryptocurrencies.
• A pullback in the price of Bitcoin could erase some of the FOMO-induced gains that may have come as a result of the latest media cycle around the Bitcoin-related Tesla and Mastercard announcements.
• Russia will be implementing a tax on cryptocurrencies after the State Duma approved the proposed law on taxing cryptocurrency.
• The simultaneous buying of US equities and Bitcoin by millennials has increased the correlation between Bitcoin and S&P500 since last March, so it is more appropriate to characterize Bitcoin as a risk asset rather than a safe asset, also given its still very high 70% realized volatility.
• Last week, Bank of New York Mellon announced that it will begin holding and transferring Bitcoin for its asset-management clients, underscoring the growing acceptance of cryptocurrency on Wall Street.

Last updated: 07 March 2021