Citibank said that Bitcoin may become the first choice for international trade
US banking giant Citi recently released a report stating that the cryptocurrency Bitcoin is currently at a tipping point, and Bitcoin may become the first choice for international trade in the future.
Citigroup stated that as companies such as Tesla and PayPal are enthusiastic about Bitcoin, and central banks are developing digital currencies, this will have a positive effect on Bitcoin.
Although the central bank’s digital currency is in a competitive relationship with Bitcoin, it helps to make blockchain technology deeply rooted in the hearts of the people, thereby allowing more investors to choose to hold cryptocurrencies.
However, the risks faced by Bitcoin are also extremely high. Citi said that Bitcoin has a variety of risks and obstacles, and these risks and obstacles may prevent its development. Bitcoin could become “an international trade currency”, says Citi.
Bitcoin and other cryptocurrencies were originally only traded within the scope of the currency circle, and more investors participated in the cryptocurrency market with the speculative psychology of getting rich.
The extremely high volatility of the cryptocurrency market makes cryptocurrency assets themselves extremely risky, which is why there have been few institutional investors outside the currency circle to participate before.
However, now more and more well-known companies and institutional investors are paying attention to Bitcoin, so Bitcoin is at the tipping point of mainstream acceptance and speculative implosion.
This marks a change in the tone of major financial institutions on the Bitcoin issue. Previously, many banks avoided cryptocurrencies because they believed that cryptocurrencies were worthless.