Looking Ahead: Bitcoin and Ethereum at auction for 101-carat diamond at Sotheby’s

Sotheby’s has declared that it will accept cryptocurrency as payment for a unique 101.38-carat diamond that will be auctioned next month for up to $15 million. The pear-shaped diamond, called The Key 10138, is one of just ten diamonds over 100 carats that have ever been auctioned, with only two of them being pear-shaped. The auction house announced on Monday that the sale will be the first time a diamond of this size has been made available for public purchase using bitcoin. It claims that no other actual thing of such great value has ever been available for purchase with cryptocurrency.

The diamond has a pre-sale approximation of $10 million to $15 million and will be auctioned in Hong Kong on July 9. Payment will be accepted in the form of Bitcoin or Ethereum, as well as regular currency. ‘This is a truly symbolic moment. The most ancient and emblematic denominator of value can now, for the first time, be purchased using humanity´s newest universal currency, ‘Patti Wong, chairman of Sotheby’s Asia, remarked. Earlier last month, the renowned art and luxury products broker experimented with bitcoin at an NFT online auction.

Despite a tumultuous year, the move represents another milestone for Bitcoin and other cryptocurrencies, which have continued to see spectacular growth and significant drops. The National Republican Congressional Committee in the United States announced last week that it will accept bitcoin donations. El Salvador became the first country to recognize Bitcoin as legal money earlier this month. Bitcoin prices climbed over $40k earlier this month when billionaire hedge fund manager Paul Tudor Jones endorsed the cryptocurrency.

‘I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want five percent in gold, five percent in bitcoin, five percent in cash, five percent in commodities‘, Jones said on CNBC’s ‘Squawk Box’ earlier this month. Elon Musk, the CEO of Tesla, who had earlier dabbled with Bitcoin payments for the company’s electric automobiles, has recently exerted considerable influence on the cryptocurrency industry.

According to a report by CNBC, In May, Musk suspended the usage of Bitcoin as a payment method after exposing his worries about cryptocurrency mining’s impact on the environment, leading hundreds of billions of dollars to vanish from the crypto market.

Bitcoin, the world’s most valuable cryptocurrency has dropped more than 20% in the previous six days alone and is almost half the price of its April high of about $65,000. It has, however, increased by more than 10% this year. However, innovations like Sotheby’s usage of cryptocurrencies for luxury goods auctions may assist to calm an otherwise turbulent market. In May, Sotheby’s sold a Banksy for $12.9 million, marking the first time a work of real art was purchased using cryptocurrencies at a major auction house.

According to the survey, white diamonds, jewellery, and other luxury products have witnessed significant demand in the previous year, notably from younger people, including those in Asia. The colorless diamond’s name, Key 10138, is meant to symbolize the vital function that keys play in the cryptocurrency realm. Diamonds in the form of pear are among the most popular.