The future of Bitcoin is not yet determined at present according to a team of analysts from Citibank
The global perspectives and solutions team from Citibank published a 100-page report yesterday seeking to elucidate the current status of Bitcoin. The team from Citigroup’s financial services arm concluded that the crypto is at a tipping point and its future could be on either side. This was the postulation presented after an in-depth comparison of the risks and opportunities the digital asset comes with.
Bitcoin, in the bank’s opinion, is on the brink of either achieving mainstream adoption or collapsing entirely from over-speculation. The team set forth that the future events in the Bitcoin ecosystem will be key in determining the future of Bitcoin.
“There are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing the potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point”, the team wrote. “Bitcoin’s future is thus still uncertain […] as the currency balances at the tipping point of mainstream acceptance or a speculative implosion”.
The report befittingly titled ‘Bitcoin, at the Tipping Point’ detailed that Bitcoin had the potential to “become the currency of choice for international trade” because of its favourable characteristics.
The global perspectives and solutions team acknowledged that Bitcoin was piquing the interest of institutional investors while noting this was a significant change in the asset’s use case.
“…The biggest change with Bitcoin is the shift from it being primarily a retail-focused endeavour to something that looks attractive for institutional investors.”
Institutional names like Tesla, MicroStrategy and PayPal featured in the report as catalysts of the asset’s adoption. The report also cited the availability of a broad set of digital payment options like digital currencies and stablecoins as a possible driver as well. The thought leadership team was also keen to point out a couple of hindrances that Bitcoin must overcome if it is to achieve mainstream adoption.
The analysts quoted the 17th century philosopher Arthur Schopenhauer who said, “All Truths pass through three stages, first it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident”.
The quote was directed at financial institutions that have reconsidered their view and had a positive change of heart on the asset. The likes of BNY Mellon and JPMorgan have, at different levels, started showing interest in Bitcoin. The analyst team asserts that the shift from being against to now becoming proponents of the assets confirms the truth in Schopenhauer’s words.