“It’s never too late. Don’t focus on what was taken away. Find something to replace it, and acknowledge the blessing you have.”
— Drew Barrymore
Wells Fargo Says It Is Not Too Late to Buy Bitcoin
It is not too late to invest in bitcoin, said multinational financial services giant Wells Fargo in a report, drawing parallels between the adoption rates of the internet in the 1990s and that of Bitcoin today. Wells Fargo’s global investment strategy team explained in the report that Bitcoin’s over 200% annualized gains since its first transaction in 2010 often lead some investors to think that it may be too late to join the party. However, the big bank disagrees. “We understand the ‘too late to invest’ argument but do not subscribe to it
,” the report
said, explaining that similar to the internet in the mid-to-late-1990s, Bitcoin “could soon exit the early adoption phase and enter an inflection point of hyper-adoption
.” Moreover, Wells Fargo believes that Bitcoin’s adoption rate will be even faster than that of the internet because “each new digital invention rides the coattails of the digital infrastructure already built
,” as evidenced by the steeper rise in smartphone adoption. “We expect that Bitcoin eventually will follow an accelerated adoption path similar to recent digital inventions
,” the report said. “It appears that cryptocurrency use today may even be a little ahead of the mid-to-late 1990s internet
,” Wells Fargo said, referring to the chart above. “Precise numbers aside, there is no doubt that global Bitcoin adoption is rising and could soon hit a hyper-inflection point
.” The report said a steeper S-curve for Bitcoin might be fueled in part by greater regulatory clarity as to legal frameworks that have begun being drawn to solidify the digital currency as an investable asset for many high-net-worth individuals that have been unwilling to make an allocation.
Russia Shares Plan To Regulate Bitcoin
Russia will follow the Ministry of Finance’s suggestion to regulate bitcoin instead of banning them as previously recommended by its central bank. The Russian government published a document on its official website
that outlines the rationale behind the decision and what plans for the legislation could look like, marking a consensus reached with a Bank of Russia that for weeks vouched to outlaw trading and mining completely. In the two days following Putin’s comments, the Russian government drafted a roadmap
for cryptocurrency legislation that would encourage developments in the industry while ensuring regulators could enforce restrictions and collect due taxes on transactions. The new document published yesterday reflects that intention as it realizes that Bitcoin cannot be stopped and instead seeks to put laws and restrictions in place to empower watchdogs and ensure the government gets the taxes owed by citizens and businesses. State efforts will also include licensing exchanges and banks interested in providing Bitcoin services to ensure they have “liquidity cushions
,” the document said. Only financial institutions that get a license will have the right to open cryptocurrency-related accounts for individuals.
Bill Introduced To Let Tennessee Buy Bitcoin
Democrat Representative Jason Powell introduced a draft bill to allow the state of Tennessee and other municipalities to invest in bitcoin. Tennessee House Bill 2644
, “as introduced, authorizes a county, municipality, or the state to invest in cryptocurrency, blockchains, and non-fungible tokens
,” according to the bill summary. The bill was introduced on February 2 and assigned to the House Finance, Ways, and Means Subcommittee, where it stands for further consideration by committee representatives. Powell also introduced Tennessee House Bill 2643
on the same day to establish a blockchain and cryptocurrency study committee “to help determine how to make [Tennessee] the most forward-thinking and pro-business state for Bitcoin and blockchain and to foster a positive economic environment for blockchain and it’s currency
,” per the bill text. The proposed committee would meet at least once a month and be composed of the commissioner of commerce and insurance or their designee; the commissioner of financial institutions or their designee; one representative with experience or knowledge in cryptocurrency, from an academic institution, designated by the chair; one representative from a financial institution, assigned by the speaker of the house of representatives; and one representative with experience in federal securities laws, designated by the speaker of the senate. House Bill 2643 was assigned to the Business and Utilities Subcommittee for further consideration.
BlackRock Planning to Offer Bitcoin Trading
The world’s largest asset manager, BlackRock, is reportedly planning to offer a bitcoin trading service to its investor clients, three people familiar with the matter told CoinDesk
. BlackRock entering the Bitcoin space by offering investment products to its clients could represent a watershed moment to the digital currency given that the New York-based firm manages over $10 Trillion in assets for institutional investors. One of the people reportedly said the asset manager would let its clients get access to loans by putting up cryptocurrency as collateral with “client support trading and then with their own credit facility
.” BlackRock’s over 1,500 institutional clients
– which include corporate and public pensions, endowments, foundations, and sovereign wealth funds – would be able to trade bitcoin through the asset manager’s integrated investment software, Aladdin, one of the people reportedly said. A second person familiar with the matter reportedly said that BlackRock was interested in getting “hands-on with outright crypto
” and was “looking at providers in the space
.” A third person reportedly commented that there is a working group of “approximately 20 or so
” evaluating bitcoin inside BlackRock. “They see all the flow that everyone else is getting and want to start making some money from this
,” the person added. BlackRock’s chief executive officer Larry Fink said in May of last year that the asset manager was studying bitcoin to determine whether it could offer countercyclical benefits, according to a Reuters
report. The executive also said that Bitcoin could potentially play a role in long-term investing as an asset class similar to gold.
Drake Bets $1.3M Worth Of Bitcoin On Super Bowl
Canadian superstar rapper Drake is using bitcoin to bet that the Los Angeles Rams will beat the Cincinnati Bengals in the upcoming Super Bowl match. The award-winning musician shared on Instagram that he placed a total of around $1.26 million worth of BTC in bets, including over $470,000 on Rams winning the Super Bowl and about $790,000 on the team’s wide receiver Odell Beckham Jr. “All bets are in on the family
,” Drake said in an Instagram post
that included images of his bitcoin bets. According to the pictures, Drake’s $790,000 bet on Beckham Jr. was equally split between two achievements of the wide receiver. The Rams’ athlete would need more than 62.5 receiving yards and over 0.5 anytime touchdowns in the game to get Drake on the green. “It’s time
,” Beckham Jr. said in a comment to Drake’s Instagram post. In November, the NFL star announced he would take 100% of his new salary in bitcoin
through a partnership with payments platform Cash App as he left the Cleveland Browns for the Rams. The wide receiver is one of the many NFL athletes to jump on the paid-in-bitcoin bandwagon, a move that could make him up to $4.5 million in bitcoin in one year. Drake’s total payout could reach nearly $2.30 million, according to screenshots of the online betting app Stake shared in his post.
New Hampshire Establishes Bitcoin Study Commission
Chris Sununu, Governor of the U.S. state of New Hampshire, last week signed an executive order establishing a commission to investigate current Bitcoin-related laws and propose new ones as the state seeks to encourage innovation and attract businesses in the financial services sector. “New Hampshire is a hub of financial innovation, and this Executive Order will further our commitment to attracting high-quality banking and financial businesses in a safe and responsible manner
,” Governor Chris Sununu said in a statement
. The commission will research U.S. federal and state legislation governing Bitcoin to determine their effects on innovation and economic competitiveness of New Hampshire and the country and privacy and liberty rights of citizens, according to the order. The executive order
grants the commission a maximum of 180 days to submit a report detailing its “findings, determinations and recommendations to the Governor, the Speaker of the House, and the President of the Senate
.” Additionally, the commission’s report will be made publicly available on the Governor’s office website.
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” - Henry Ford
Stay Safe & Stack Sats!