Citibank Says Macro Conditions Created A Tipping Point For BTC

Citibanks says the macro conditions have created a tipping point for BTC and that the cryptocurrency is poised to become the world’s currency of choice for global trades as we can see more about it in our latest Bitcoin news.

The US bank Citibank says that BTC is poised to become the currency of choice for users across the world for global trade which comes as the banks are on the back foot when it comes to supporting BTC or extending the crypto to fiat services to clients. However, the new research shows there’s a change in sentiment:

 “Developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”

The bank added that the BTC future is still uncertain and that there are a lot of risks and obstacles that are standing in its way for progress:

 “The entrance of institutional investors has sparked confidence in cryptocurrency but there are still persistent issues that could limit widespread adoption.”

The bank added that institutional investors see these issues and pose concerns of capital efficiency custody, security, and insurance from holding BTC and various environmental concerns about the mining operations which is the intensive computational process when a new BTC is generated. The bank said that cryptocurrencies are a better bet ahead of the traditional payments in terms of security as the bank noted:

 “Security issues with cryptocurrency do occur, but when compared to traditional payments, it performs better. There may be relatively lower than the normal risk in public markets due to government support, which in turn frees up investors to deploy more risk capital.
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Citibank have released a 106-page report on #Bitcoin.

BTC's attributes "could spur it to become the currency of choice for international trade…. Bitcoin is at a tipping point and we could be at the start of a massive transformation of cryptocurrency into the mainstream." pic.twitter.com/i8lrpxn5Ha

— Bloqport (@Bloqport) March 1, 2021

The interviewees explained that this ability to allocate amounts of risk capital to private markets was constrained by the high reserves of dry powder but there’s still a growing need to hedge inflation as they stated it was a combination of these perceptions which prompted investors to look further and to look for other opportunities:

 “Just as precious metals like gold are seen as scarce in the physical world, Bitcoin’s digital scarcity is seen as offering a potentially equivalent value proposition.”

https://twitter.com/zhusu/status/1366352878504353794

The bank explained that many of the interviewees think about the finite supply of BTC and what it stands for in contrast to elastic sovereign money supplies and the incentives of the governments to print money.