Well one thing is for sure, bitcoin isn’t boring!
With the recent embrace by the likes of Tesla Inc and Mastercard Inc, bitcoin could be at the start of a “massive transformation” into the mainstream. The growing involvement from institutional investors in recent years contrasts with heavy retail-focus for most of the past decade.
If businesses and individuals gain access via digital wallets to planned central bank digital cash and so-called stablecoins, bitcoin’s global reach, traceability and potential for quick payments would see it “optimally positioned” to become the preferred currency for international trade.
Such a dramatic transformation for bitcoin to the de facto currency of world trade – a status currently held by the dollar – would depend on changes to its market to allow wider institutional participation and closer oversight by financial regulators, Citi said.
Of course, that’s pretty funny given that bitcoin was developed in part to get away from oversight by financial regulators.
The cryptocurrency shot above $58,000 recently before retracing below $45,000.
The Citi analysts wrote:
“There are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.”
Right. But which way? That’s the question.