Bitcoin (BTC) is at a turning point in its history, according to analysts from the US investment bank Citi. They estimate that the queen of cryptocurrencies could become “the currency of choice for international trade” within 7 years.
Bitcoin, a currency for international trade within 7 years?
Recently published by the investment bank Citi, a long report of 105 pages , entitled " Bitcoin: At the Tipping Point ", translatable as: "Bitcoin: Au Point de Tipping", traces the evolution of Bitcoin as a reserve of value and currency.
From the introduction of this document, Citi analysts believe that Bitcoin is likely to become the "currency of choice for international trade" .
The report highlights the benefits of Bitcoin for global payments, including its decentralized design, fast (and potentially less expensive) money movements, secure payment channels, and traceability.
According to them, Bitcoin's underlying properties combined with its global reach and neutrality could allow it to achieve currency status for international trade within 7 years .
“Bitcoin is also emerging as the 'pole star' in the digital goods space and is a compass for the evolution of the cryptocurrency ecosystem,” Citi analysts note.
With all due respect to Christine Lagarde, President of the European Central Bank (ECB), analysts at Citi Bank argue that Bitcoin can play the role of a currency.
A path still strewn with pitfalls?
Citi analysts are taking a distance, however. Bitcoin will have to overcome many obstacles to continue to be adopted in a massive way:
“The arrival of institutional investors has created confidence in the cryptocurrency, but there are lingering issues that could limit widespread adoption,” the report said.
The report highlights the potential regulatory difficulties that Bitcoin could experience in the next few years. As its adoption continues exponentially, it is true that some governments take a dim view of the cryptocurrency queen. However, it is clear that a local ban will obviously not slow down the global spread of Bitcoin .
Citi analysts also point to the fact that the Bitcoin network lacks scalability, and is often prone to congestion. It is true that Bitoin remains quite slow, with an average of 7 transactions per second . The report nevertheless takes into consideration the development of solutions such as those of the Lightning Network , which drastically improves the capabilities of the network.
Regardless, Citi analysts are showing some optimism about the future of Bitcoin. Yes, risks do remain to this day, but these can quickly be wiped out as Bitcoin adoption progresses.
The report concludes by stating that bitcoin is "the tipping point of its existence . " Citi notes that its development will have far-reaching implications for the global economy and the world of tomorrow . This document published by Citi supports the bullish sentiment that many traders and institutions share today.