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Tipping point: obstacles and opportunities that will define the future of bitcoin

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Kamal Saini
Kamal S. has been Journalist and Writer for Business, Hardware and Gadgets at Revyuh.com since 2018. He deals with B2b, Funding, Blockchain, Law, IT security, privacy, surveillance, digital self-defense and network policy. As part of his studies of political science, sociology and law, he researched the impact of technology on human coexistence. Email: kamal (at) revyuh (dot) com

Investment bank Citi has analyzed the future of bitcoin after reaching historic prices and suggests that the cryptocurrency is at a tipping point that will define whether it becomes the currency of choice for international trade or will face a “speculative implosion”.

The recent welcome given by companies such as Tesla and Mastercard has catapulted the price of bitcoin, reaching historical records above $ 58,000. Although it then plunged below 50,000, it recovered nearly 6% on March 1 as risky assets rallied after bonds fell a week ago.

According to the Citi analysis cited by Reuters, this could just be the beginning of a “massive transformation” for bitcoin, because if they are able to boost fast bitcoin payments, through digital wallets, they would see the cryptocurrency “in an optimal position” to become preferred for international trade.

Bitcoin was designed as a payment tool, yet its high volatility and relatively expensive transactions continue to be some of its biggest obstacles to acquiring broad participation in the trade.

Citi believes that the virtual currency would have to allow closer supervision by financial regulators to achieve a transformation, although changes in the macroeconomic environment may also make a demand for bitcoin less urgent.

“There are a number of risks and obstacles that stand in the way of Bitcoin’s progress. But weighing these potential obstacles against the opportunities leads to the conclusion that it is at a tipping point,” Citi analysts wrote.

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