The first cryptocurrency has reached a tipping point \u2014 it could either become a means of payment in international trade, or endure a ‘speculative explosion’. This is stated in a new Citibank analyst report.<\/p>\n
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In their view, news from companies like Tesla<\/a> and Mastercard<\/a> signals the start of Bitcoin’s entry into the mainstream. Active institutional investor interest contrasts with what was observed at earlier stages, the report’s authors noted.<\/p>\n They noted that broader use of digital gold in global commerce would be aided by transparency and the decentralised nature. Among the advantages, the experts cited low transfer costs.<\/p>\n \u201cThere are many risks and barriers on Bitcoin’s path to progress. Comparing potential difficulties with the opportunities leads us to conclude that the asset is at a turning point,\u201d the report says.<\/p>\n<\/blockquote>\n The report authors named scalability and regulatory challenges as problems. Analysts acknowledged that institutional investors had begun buying the cryptocurrency as an inflation hedge, but a recovery in real economic growth could prompt them to reassess.<\/p>\n In November 2020, Citi researchers forecast that Bitcoin’s price could rise to $318 315<\/a> thanks to its status as digital gold in the 21st century.<\/p>\n Subscribe to ForkLog’s channel on YouTube<\/a>!<\/p>\n\n