Hello and welcome to another week's edition of Overbit's Weekly Roundup. This week, we cover two prominent trends in Bitcoin, large businesses and large banks getting involved in the burgeoning crypto space.
Our first story of the week is about the well-known American restaurant chain Chipotle. The company recently revealed a $100,000 Bitcoin giveaway, but Chipotle isn't just yet taking advantage of the Bitcoin craze by embracing the cryptocurrency as payment for its Mexican dishes. Even though Chipotle does not welcome Bitcoin payments at this moment, this contest is the first time a US restaurant chain has given away Bitcoin, according to the company.
Chipotle is working with Stefan Thomas, the San Francisco man who recently lost $220 million in Bitcoin when he couldn't remember the password to his digital wallet - and who appears to have "made peace" with the huge loss. The "Bitcoin or Burritos" promotion exemplifies Bitcoin's growing mainstream appeal. Though it may seem like a "small event" to some crypto participants, advertisements like this will serve as a reminder of how early in the digital currency adoption curve we are.
Moving on to more heavy-hitting institutional news, we look at the most recent name in the audience to throw their name into the ring.
Goldman Sachs is reportedly the most recent name to have hopped onto the crypto caravan. According to CNN Business, Goldman Sachs will soon begin offering its private wealth management clients, pathways for investing in bitcoin and other cryptocurrencies. It seems this is quite a new endeavour, as CNN Reports indicate that a new name is set to take over as the new global head of digital assets, Mary Rich, who will lead the department within Goldman's private wealth management division.
Goldman Sachs and its interest in cryptocurrencies will cover a wide array of different investment vehicles: "physical bitcoin, derivatives or traditional investment vehicles," Mary Rich said in the CNBC interview.
This news comes just a few weeks after it was reported that Morgan Stanley would roll out Bitcoin investment options for its wealthier clients. It seems the bar is even higher for Goldman Sachs, though, with the private wealth division having minimum assets under management at $25 million.
Overall, Mary Rich was quite clear as to why Goldman Sachs is moving in this direction. "There's a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that," Rich said. She continued: "There are also a large contingent of clients who feel like we're sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space." At this rate, we may not have another bank left that's not in crypto in a matter of a year.
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