Digital Assets: “The Real Story Is Adoption,” Says Novogratz On Bitcoin

December 2, 2020 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2020/12/bitcoin-2643188_640.jpg

A “litany” of institutions have changed their minds on bitcoin and are chasing it, Novogratz adds.

Speaking Tuesday on CNBC’s Squawk Box, Mike Novogratz, CEO of Galaxy Digital, said large investors appeared to be switching their gold holdings to bitcoin, judging from the outflows seen recently in the yellow metal. Meanwhile, the leading cryptocurrency touched an all-time high on Tuesday. (COIN TELEGRAPH)

The real story, however

However, Novogratz clarified that in his view, bitcoin’s rally was based on rising adoption, particularly by institutions, who had so far been sitting on the fence.

“The real story is the adoption of bitcoin, adoption of crypto, across a vast variety of accounts,” he said.

Guggenheim’s recent filing showed it intended to pick up $500 million of BTC.

“It’s just a litany of institutional investors that are changing their mind, or realizing that now is the time, there’s enough liquidity for bitcoin to be part of it,” said Novogratz.

Other indicators of rising BTC adoption

Sure, institutions, corporates, and fund managers are lately showing a fondness for cryptos, particularly bitcoin.

But there are other, interesting nuggets of information that show the rising acceptance of b the cryptocurrency.

Paypal usage

A report by Mizuho Securities showed that nearly a fifth of all PayPal (NASDAQ: PYPL) users had already traded bitcoin using the company’s app. (Coin Desk)

Moreover, Mizuho surveyed 380 PayPal users and found that about 65% would use the leading crypto as a mode of payment at PayPal’s merchants.

A new credit card will pay rewards in BTC

Visa (NYSE: V) and BlockFi, a crypto startup, have tied up to launch a new credit card that will reward purchases with bitcoin instead of airline miles or cashbacks. (COIN TELEGRAPH)

Cardholders will receive 1.5% of their purchases in bitcoin.

To be available in early 2021, the card will carry a $200 annual fee.

Visa previously partnered with Fold, a digital startup, to launch a debit card that paid rewards in cryptos.

Bitcoin active users at a record

Coin Desk also said that new price highs in bitcoin appear to have triggered massive user activity.

Blockchain analytics firm Glassnode reported that as of Tuesday, active entities (wallet clusters controlled by a single participant that transacted funds in a 24-hour period) touched a new record of 432,451. The previous best reading was 410,972, clocked on December 9, 2017.

According to analysts, the rise in the number of active entities shows an increase in network adoption by participants. That, in turn, suggests that the current rally is sustainable.

Related Story: Bitcoin Perma-Bull Mike Novogratz Is On A Roll

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/01/Bink-app-shot.png
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-22-29-49-Screenshot-Pawson-2.png
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

https://dailyalts.com/wp-content/uploads/2022/01/47752022922_e4569a2f0e_c.jpg
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-18-48-26-超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…