The Global Perspectives & Solutions (GPS) team at Citigroup published a 108-page report titled “Bitcoin at the Tipping Point” on Monday.
The biggest change with bitcoin is the shift from it being primarily a retail-focused endeavor to something that looks attractive for institutional investors. Specific enhancements to exchanges, trading, data, and custody services that are increasing and being revamped to accommodate the requirements of institutional investors.Citi GPS survey
The study outlines the advantages of bitcoin in global payments, including its decentralised nature, lack of foreign exchange exposure, quick money movements, safe payment networks and traceability.
According to Citigroup, these characteristics, coupled with bitcoin’s global scope and neutrality, may propel it to become the preferred currency for international trade.
According to the study, Bitcoin has gone through three stages of attention so far: technical oddity, censorship-resistant currency, and digital gold. It also predicts that when Bitcoin evolves into an international trading currency, a fourth stage of emphasis will emerge. According to the Citigroup study, this would take advantage of Bitcoin’s decentralised and borderless nature, lack of foreign exchange exposure and pace of moving money.
While highlighting a number of significant advances in Bitcoin over the last seven years, the study also identifies a few roadblocks on the cryptocurrency’s path to becoming a widely accepted trade currency. Market security, including tether’s position in Bitcoin, the environmental effects of mining and institutional issues are just a few of them.
The article goes on to say that Bitcoin’s growth is hampered by a slew of risks and stumbling blocks. However, when these possible roadblocks are weighed against the opportunities, it seems that Bitcoin has reached a turning point, and we could be witnessing the beginning of a huge transition of cryptocurrencies through the mainstream.
The study goes on to acknowledge that Bitcoin’s future is unclear. However, it also states that large institutional investors and institutions are opting to engage in and fund Bitcoin, while regulators are laying the groundwork for the asset to eventually enter the mainstream.
With the development of Bitcoin taking place in just over a decade, Bitcoin is impressive regardless of its future.
At the time of writing, 8th March 2021 9.50 AM, Bitcoin is sitting at $49,772.40 after a brief flurry into the low $50k region over the weekend.