Sotheby’s Next Diamond Auction Will Allow Bitcoin As Payment

June 25, 2021, by Cris
Sotheby’s, a major auction house, will auction a valuable diamond next month and accept cryptocurrency as a payment method.
Bitcoin Sothebys

Diamond Could Attract a $15 Million Bid

The diamond on sale this month is a 101.38-carat pear shaped flawless diamond. Only ten other 100-carat diamonds have been auctioned in the past, and only two of those diamonds were pear-shaped diamonds.

The rare gem is expected to attract bids of $10 million to $15 million.

The highest bidder will be able to pay with Bitcoin (BTC) or Ethereum (ETH). Additionally, Sotheby’s will accept traditional currencies.

One Sotheby’s representative noted: “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.”

The auction will take place in Hong Kong on July 9, 2021. It remains to be seen whether the buyer will actually choose to pay with cryptocurrency.

Sotheby’s Is Turning to Crypto

Sotheby’s previously accepted cryptocurrency payments when it sold a piece of Banksy artwork for $12.9 million in May. However, it is not clear whether the final transaction involved cryptocurrency or fiat currency.

The auction house is also working with non-fungible tokens (NFTs), a collectible type of cryptocurrency token. Sotheby’s ran a “Natively Digital” NFT sale in early June. It is planning to auction a collectible NFT version of Tim Berners-Lee’s World Wide Web source code as well.

Other auction houses, including Christie’s and Phillips, also began to work with cryptocurrency and NFTs this year.

Bitcoin and Ethereum have limited transaction throughput, which makes them impractical for small transactions. However, both cryptos are ideal for auction houses, which handle valuable items and large transactions.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

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