According to Citigroup, Bitcoin is in its infancy where it will soon be regarded as the preferred trading source within the global trading market. There is no stopping of Bitcoin from becoming the number one currency to be used for global commerce and trade, says Citigroup.
A research wing of Citigroup has complied a comprehensive study paper regarding Bitcoin which is spreading over 100 pages. The study paper has duly been published three days ago under the heading “Bitcoin at the Tipping Point”.
It has been explained in the study paper that Bitcoin has elevated above its structural change. In simple words, there has been a huge change apparent in Bitcoin which was otherwise regarded as a retail asset earlier. But as of today Bitcoin is looking more promising than ever before and has been overwhelmingly adopted by institutional and individual sectors.
According to Citigroup the change in Bitcoin was due to the increase in four aspects i.e. trading, exchange activities, and custody services. Since last year all these four aspects have been revamped so as to become more accommodative for each type of investor.
It was furthermore detailed in the report that there are prominent advantages of Bitcoin at global levels. For instance, it is non-centralized and is not subject to risks as are associated with foreign exchanges. In addition, the transactions are not only cheaper but also reliable and fast. With all these aspects plus their evolution in the coming years, it would make Bitcoin a global currency. Resultantly for international trade and commerce Bitcoin will be regarded over US Dollar, suggested the report.
It was pointed out in the report that there were two major stages at which Bitcoin focused on a great deal. It was noted that the stages were technological twists as well as digital gold. Soon Bitcoin will be taking on the third stage i.e. its transition towards becoming locally and globally preferred currency, said the report. The report explained that because of Bitcoin’s inherent decentralized nature surpassing of the third stage would be as easy as pie.
The report also discussed landmark developments taking place within Bitcoin over the past 6 to 8 years. It was noted in the report that the initial hurdle in the way of Bitcoin’s growth was its “usability”. Particularly, the major obstacle was its use as currency for the purposes of trading. The other major fears were Bitcoin’s volatility and in-market security. But over time, both these fears have been overcome and laid to rest.
Even though volatility continues to exist, but the investors don’t mind it at all and look at the returns they are going to earn.
The only major concern for Bitcoin for the time being is its usage. It is still felt that on this side, the legendary coin is still lagging behind which it should have achieved much earlier.