A spectacular implosion or a serious dollar rival? US investment bank Citi says that Bitcoin now he plays for everything.
Citi has released a new report examining the condition of the anterior cryptocurrency, which is said to be at a tipping point from which there are only two starting points. Will BTC become the preferred currency for international trade, or will it suffer a complete price implosion?
The US investment bank claims that Bitcoin is currently undergoing a massive transformation, supported by Tesla, which has invested $ 1.5 billion in digital assets. MasterCard is also working on plans to allow millions of customers to make payments using cryptocurrencies.
Obstacles vs. opportunities
Citidescribing why the bitcoin opportunity is so huge, she pointed to how central bank digital currencies and stablecoins are gaining strength, which means that companies and consumers could start using them in the coming years.
Analysts believe that the rapid nature of bitcoin payments, together with the fact that transactions are traceable, means that they have the potential to be used regularly for cross-border payments.
However, there are threats on the horizon. USA it can get nervous if the BTC undermines the dollar, regulation would be inevitable. Demand for cryptocurrency may also decline as the economic environment begins to improve. Citi experts added:
“There are a lot of risks and obstacles to BTC’s progress. However, considering these potential barriers against opportunities leads to the conclusion that Bitcoin is at a turning point. “
Other challenges, of course, include the fact that BTC uses a lot of electricity and the network can only process about five transactions per second.
After a rather miserable business weekend, when Bitcoin dropped to $ 43,241.62 on Sunday, the world’s largest cryptocurrency began to rebound on Monday. At the time of writing, its value has increased by 7.7% in the last 24 hours, bringing Bitcoin to $ 48,155.80. What do you think the correction is over? Or is it just the beginning of that “implosion”?