According to Citigroup, Bitcoin is at a turning point and crypto knowledge may become the currency of choice for international trade. The firm wrote in its report that we may be at the beginning of a massive shift from cryptocurrency to mainstream.

bitcoin at checkout, Citi says.

Citigroup’s Global Perspectives & Solutions (GPS) team released a 108-page report Monday titled Bitcoin At the Tipping Point.

The Citi GPS report explains that the biggest change in the Bitcoin sector is the shift from a market that is primarily focused on individuals to one that is attractive to institutional investors. The Company attributes this change to specific enhancements to its exchanges, trading services, custody services and custodial services, which are being expanded and improved to meet the needs of institutional investors.

The report highlights Bitcoin’s advantages for global payments, including its decentralized design, absence of currency risk, fast (and potentially cheaper) money movement, secure payment channels, and traceability:

These characteristics, combined with Bitcoin’s global reach and neutrality, could make it the currency of choice for international trade.

The report also explains that Bitcoin has gone through three distinct stages so far: technological madness, censorship-proof currency, and digital gold. It is also expected that we will soon see a fourth phase where bitcoin will become an international trading currency. This would take advantage of Bitcoin’s decentralized, borderless design, lack of currency risk, speed and price advantage in moving money, payment security and traceability, the Citi report said.

The report highlights a number of notable developments in Bitcoin over the past seven years, but also identifies a number of obstacles preventing cryptocurrency from becoming a globally viable commercial currency. These include market safety – including the role of bitcoin binding – environmental impacts of mining, and institutional issues such as capital locks, insurance, and storage restrictions. The report adds:

There are many risks and obstacles to Bitcoin’s progress. But when you weigh these potential obstacles against the opportunities, you come to the conclusion that Bitcoin is at an inflection point and that we could be at the beginning of a massive transformation of cryptocurrents into the mainstream.

Bitcoin’s future is therefore still uncertain, the report said, reiterating that short-term developments are likely to be crucial, as the currency is at the tipping point between accepting a larger currency or a speculative implosion.

Meanwhile, the report notes that large institutional investors and organizations are choosing to participate and support Bitcoin as regulators begin to lay the groundwork for the potential introduction of this asset into the mainstream.

It further points out that this development, which has taken place in just over a decade, makes Bitcoin remarkable no matter what the future holds, it concludes :

Bitcoin is at a turning point in its existence, and the path forward could have far-reaching and increasingly important consequences.

What do you think of Citi’s opinion on Bitcoin? Let us know in the comment section below.

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frequently asked questions

Will Bitcoin become a global currency?

Bitcoin will eventually become a global currency – and a $1 million price tag over the next 10 years is quite reasonable, says Kraken’s CEO. Bitcoin will eventually become a global currency, Kraken CEO Jesse Powell told Bloomberg. … The price of bitcoin is up 70% from last year.

How is Bitcoin used as a means of payment?

It can be used to buy or sell things to people and businesses that accept Bitcoin as a means of payment, but it differs from traditional currencies in several important ways. Clearly, Bitcoin does not exist as a physical currency. There are no real coins or real bills. … The miner is rewarded with a share of the play.

Is Bitcoin the strongest currency?

After more than a decade of growth, Bitcoin is now one of the top ten currencies in the world. USD, EUR, CNY and JPY are the only world currencies that have more money than Bitcoin. Bitcoin is currently the fifth largest currency in the world, regaining the position it lost in 2018.

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