A group of analysts from American multinational investment bank, Citibank noted in a report that the world’s largest cryptocurrency Bitcoin (BTC) is “at a tipping point,” which could see the asset become the favorite currency for international trade or a speculative implosion.
According to the 108-page report titled, “Bitcoin, at the Tipping Point,” the analysts noted that the massive interest in Bitcoin from notable institutional players, including Microstrategy, Tesla, and Mastercard could play a major role in the cryptocurrency going mainstream.
A section of the report cites a famous quote from Philosopher Schopenhauer who once remarked, “All Truths passes through three stages, first it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
“Though this sentiment was expressed more than 150 years before the emergence of Bitcoin,” Citi analysts agree that ‘the introduction and evolution of the cryptocurrency illustrate the human response’ to change which Schopenhauer highlighted.
The report further acknowledged that although BTC might encounter several obstacles on its way to stardom, comparing its risks and opportunities, clearly puts the cryptocurrency at a tipping point.
“Weighing the potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point,” Citi’s analysts wrote.
As per the report, the widespread access to other digital payment means like stablecoins and Central Bank Digital Currency (CBDC), could also increase BTC’s chances of being adopted in international settlements.
Bitcoin Reaches Threshold of Mainstream Adoption
Interest in Bitcoin first started with retail investors as seen during the early stages of the cryptocurrency, bringing the cryptocurrency to the doorsteps of the institutional class.
Despite the potentials associated with the investment, institutional investors had stayed away due to several concerns, including regulation.
With the industry becoming more transparent than ever as regulators are laying the groundwork for Bitcoin to go mainstream, institutional investors are gradually entering the space.
At the moment, banks and governments are also considering the best way to make strategic investments involving the world’s most popular cryptocurrency.
While Bitcoin is slowly becoming an investment of choice for institutional players and banks, it has paid off drastically for earlier investors, pushing the price of one of its units to more than $58,000 and hitting the $1 trillion market capitalization last month.
However, the feat was short-lived as the asset lost more than $15,000 of its value last week on questions over the sustainability of such high prices. Bitcoin has since made a slight recovery and is trading above $47,000, at the time of writing this report.
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