Citibank: Bitcoin’s at the ‘Tipping Point’ & The Start of Massive Transformation into the Mainstream
“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years,” states the report.
In its 108-page long report on Bitcoin, Citibank talks about the leading cryptocurrency at “the tipping point of its existence and the path forward from here may have broad and widening repercussions.”
The first time Citi GPS talked about Bitcoin was back in 2014 when Bitcoin had a mere $6.2 billion market value. At the time, the bank cautioned that it could be replaced by another digital currency.
Much like the Crypto Twitter (CT), the bank likens the journey of Bitcoin with the philosophy of Schopenhauer,
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
Large institutional investors and organizations have begun to participate in and support the leading digital currency. “In a search for yield and alternative assets, investors are drawn to Bitcoin’s inflation hedging properties,” reads the report.
The fact that this has happened just a decade in its existence “makes Bitcoin remarkable regardless of its future,” it says. The report adds,
“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years.”
A new payment system which is relying on a decentralized cryptographic approach can also challenge traditional payment rails. Besides being a payment system, Bitcoin is digital gold, a store of value, and a global facilitation currency.
Bitcoin’s decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability combined with its global reach and neutrality, according to the bank’s executives, could spur it to become the currency of choice for international trade.
More than this, it has become the inspiration for a rapidly evolving blockchain-based economy.
The report aims to provide its users a better understanding of Bitcoin, which has entered a new stage of its journey, according to the bank.
“Bitcoin is at a tipping point, and we could be at the start of massive transformation of cryptocurrency into the mainstream,” concludes the bank.