top of page

New German Law Could Prompt $415 Billion BTC Investment

by Alex Clark


Ethereum 2.0, the network upgrade of ETH, crossed 6 million staked coins under its deposit contract on Thursday, which is its highest level on record. Given ETH’s current price at $2,035, this amounts to $12.21 billion.


The launch of the energy efficient Ethereum 2.0 network has put the digital asset in the spotlight, with two JP Morgan analysts saying that proof-of-stake coin yields are attractive investments in this zero-rate environment. Not only does staking lower the opportunity cost of holding cryptocurrencies versus other asset classes but, in many cases, cryptocurrencies pay a significant nominal and real yield.


Elon has lost his edge after his tweet yesterday failed to move the price of Dogecoin. Musk took a break from tweeting about Doge at the end of May but made a return yesterday publishing a tweet saying, ‘Release the Doge!’ It seems that investors are no longer listening and are finally realizing that the tweets of one man should not be the deciding factor for whether they buy or sell their assets.


But, given that Dogecoin accounted for 34% of Robinhood’s crypto transaction-based revenue in Q1, any slowdown in demand for Doge could be bad news for the platform.


650 U.S. banks will soon be able to offer bitcoin purchases to an estimated 24 million customers as part of a deal between enterprise payments giant NCR and digital-asset management firm NYDIG. Banks and credit unions have grown tired of seeing crypto purchases made from their accounts to outside exchanges but by providing these clients with a way to buy bitcoin—and eventually spend it—within their existing accounts, the need for cryptocurrency exchanges could disappear.


We could witness a significant flow of investment into bitcoin following the approval of a new law in Germany that permits special funds, to invest as much as 20% of their portfolios in crypto. Should every ‘Spezialfond’ choose to allocate the full 20% in crypto, that would equate to $415 billion, based on the total assets under management of such funds in Germany.


A recent survey of financial advisors and their investing strategies shows “a significant shift to embracing cryptocurrencies.” More than 26% indicated that they plan to increase their recommendation of cryptocurrencies over the next 12 months. Furthermore, 49% of advisers said that clients have asked them about investing in cryptocurrencies in the last six months.


The Bitcoin Mining Council, an organization created to promote the use of renewable energy in the Bitcoin mining industry, has revealed that sustainable energy use increased 52.2% between Q1 and Q2 of 2021. The report also explains that 67.6% of the total energy used to mine Bitcoin comes from sustainable sources. It is hard to know what the energy mix will look like until the hashrate from China has relocated, but its only likely to improve given that 65% of bitcoin mining occurred in China, where a large portion of miners used electricity generated by coal-fired plants. For example, Miami is touting its reliance on nuclear power, Paraguay is trying to lure miners with its cheap hydroelectric power and El Salvador is exploring the use of volcanoes as a source of energy.


The Republic of San Marino has approved VeChain’s NFT-based covid vaccination passport, which is reportedly verifiable worldwide. The digital vaccination certificate is recorded on the VeChainThor public blockchain, by linking an enterprise nonfungible token (eNFT) to an individual’s Covid-related medical history.

Comments


Commenting has been turned off.
GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Ltd., a company registered in England and Wales with registration number 09450626. GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Ltd., a company registered in England and Wales with registration number 09450626,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

Cryptoasset Notice

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page