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Citi says Bitcoin could become the currency of the future

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Bitcoin is at a ‘tipping point’ and could one day become ‘the currency of choice for international trade,’ according to an analysis conducted by the US investment bank Citigroup.

In a Reuters report last March 21, Citi analysts believe that BTC is on the verge of going global, especially after large companies like Tesla and Mastercard incorporated cryptocurrency into their services.

‘While there are many updates regarding cryptocurrency, but when compared to traditional payments, it performs better,’ Citi analysts said at CNBC reports.

The top cryptocurrency’s recent performance is due to the institutional investors, contrasting with its heavy retail investor focus for the past decade.

According to the analysis, Bitcoin which hit a record high of $58,354 in late February, could also face a ‘speculative implosion’ in the future once business enterprises gain access to digital wallets.

‘Bitcoin, designed as a payment medium, is not really used for commerce in major economies since it is hampered by high volatility and relatively costly transactions. Nonetheless, it has gained attraction in some emerging markets, such as Nigeria, over the past year,’ Citi analysts stated.

In addition, Citigroup’s analysts have suggested that mainstream adoption of Bitcoin could be favoured by developments in the field of digital currencies such as Central Bank Digital Currency and fiat-pegged stable coins.

However, cryptocurrency analysts in Cointelegraph reported that the success of bitcoin would still depend on the state of the crypto market and whether the industry will accommodate the requirements of institutional investors and financial regulators.

According to Citi finance experts, global regulations could be one of the main instigators to the adoption of Bitcoin by institutional investors. Bridgewater, one of the largest American investment management firms, disclosed last February 25 that certain regulations around Bitcoin would solve some of the biggest cryptocurrency problems associated with high volatility and low liquidity.

‘We agree that a number of risks and obstacles can stand in the way of bitcoin’s progress. Nevertheless, the analysis of these potential difficulties and its opportunities leads to the conclusion that bitcoin is at a tipping point,’ Citi analysts stated.

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Cryptocurrency Market Capitalization
  • bitcoinBitcoin (BTC) $ 17,262.72 2.66%
  • ethereumEthereum (ETH) $ 1,285.08 4.24%
  • tetherTether (USDT) $ 1.00 0.02%
  • bnbBNB (BNB) $ 289.97 2.22%
  • usd-coinUSD Coin (USDC) $ 1.00 0.02%
  • binance-usdBinance USD (BUSD) $ 1.00 0.01%
  • xrpXRP (XRP) $ 0.393340 2.65%
  • dogecoinDogecoin (DOGE) $ 0.098608 3.03%
  • cardanoCardano (ADA) $ 0.315739 2.1%
  • matic-networkPolygon (MATIC) $ 0.925737 4.17%

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