Citi’s researchers said in a recent report that Bitcoin has the tendency to become the currency choice of international traders.
Citi, a US Banking giant, has published a report saying that, as Bitcoin evolves, it could become a replacement of currency for many traders.
Back in 2014, Citi said in a report that Bitcoin was quite popular among the new generation, and even though the old investors were not as familiar with this method of trading, they were starting to adopt this currency. Back then, Bitcoin had worth around $6.2. Now Bitcoin has bounced above $48,000 with an increase in its worth up to 9% in the previous 24-hours. This is due to the recent interest showed by Mastercard and Tesla.
Role of Institutional Players
In a follow-up report, they highlighted the shift in Bitcoin from being only a retailed-focused endeavour to the main attraction of institutional investors. The authors say that in around seven years, Bitcoin could become the currency of choice for traders due to its properties and global demand.
Electronic payment has been around for 130 years, but it has always required an intermediary to maintain the currency’s trust and integrity. As the head of digital assets, Puneed Singh said that the longer the currency stays in the market, the more it is valued, so everyone should figure out how to interact with it.
As Bitcoin can become a trading currency, it can increase its chances to become a low payment money transfer, speed transaction, security, and traceability. This report explains that Bitcoin could simplify the trading process as a trading currency in global import and export. The report also added some key players of the digital assets market like Michael Sonnenshein, describing Bitcoin is an evolution of money and value. And Itay Malinger says that Bitcoin is the enabler of every currency that might come after it.
Bitcoin also has many potential barriers. The report translates that capital efficiency, security, insurance, and custody for an institutional investor is the primary concern from Bitcoin. Despite Bitcoin’s continuous success in the digital assets market, Citi also acknowledged Bitcoin’s uncertainty and argued that the next few years would be the determining point of the BTC.