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Summary
- As per a Citi report on bitcoin, the digital cryptocurrency is at a tipping point and can be the currency of choice for international trade.
- Gradually, bitcoin is entering the mainstream. However, its highly volatile nature makes authorities highly concerned and cautious.
- After Citi published its report, bitcoin prices are going up.
Bitcoin is going through an exciting phase. Of late, there has been more acceptance of the cryptocurrency in the mainstream with support from companies like PayPal and Tesla adding to its recent bull run.
While the debate between supporters and sceptics goes on, investment bank Citi has released a report on the future of bitcoin. The report suggests that bitcoin is at a “tipping point”, and it holds the potential to be the preferred currency for international trade.
Image source: Pixabay
The intrinsic properties of bitcoin that favour this transformation are:
- Global reach
- Decentralised design
- Fast and cheaper money movements
- Traceability
- Protected payment channel
- Lack of foreign exchange exposure
Interesting watch: Bitcoin Joins the Trillion Dollar Club, Surpasses Facebook's Market Cap
Bitcoin Paving Way to the Mainstream
Bitcoin trading is highly volatile in nature, which makes the mainstream cautious of its acceptance. Since the beginning, these digital cryptocurrencies have faced many obstacles from government authorities. However, bitcoin managed to go against these hurdles and kept growing. Now, it has reached a stage where the mainstream cannot completely ignore it.
The Citi report has also highlighted that the road to progress is not all smooth, but riddled with risks and obstacles. However, at the same time, there are enormous opportunities. The report has labelled bitcoin as the 'North Star' in the cryptocurrency space that aided in the evolution of a more extensive crypto commerce ecosystem.
On 19 February 2021, the market capitalisation of bitcoin exceeded the USD 1 trillion mark, with its price crossing USD 55,000. Bitcoin witnessed an extremely favourable environment during the pandemic period. It stood tall when the traditional markets were undergoing a turbulent phase, owing to the unprecedented uncertainties triggered by the coronavirus crisis. The number of users of the cryptocurrency has been growing since the onset of the pandemic.
The high-profile endorsements through tweets by Elon Musk and others in February 2021 undoubtedly contributed to the surge in bitcoin price.
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However, the bitcoin rally also hit a roadblock after Elon Musk tweeted that bitcoin price seems high, and concerns were raised by Janet Yellen, the US Treasury Secretary, regarding the highly speculative nature of the cryptocurrency.
With the Citi report out on bitcoin, the prices are again going up. On 2 March 2021, at AEDT 11:54 AM, bitcoin was trading at USD 49,486.0, up by 6.78%. It would be interesting to watch an exciting turn of events unfold for the most popular cryptocurrency.
Also read: Looking for cryptocurrencies in 2021, here are top 10 other than Bitcoin
