Last month, the market cap exceeded $1 trillion, contributing to the establishment of a crypto asset ecosystem
Citigroup analyzed that Bitcoin, which has expanded its usage and value in recent years, has come to a tipping point. Last month, the market cap exceeded $1 trillion, and it was evaluated that it is contributing to the establishment of the crypto asset ecosystem.
On the 1st (hereinafter local time), Citi Group introduced the status and analysis of bitcoin through’Bitcoin at Tipping Point’ in the March issue of Citi GPS.
This is the second time Citi GPS has dealt with Bitcoin. In May 2014, when Bitcoin-related content was first included, it had been only 5 years since it appeared in the world, and the market value was only 6.2 billion dollars. In their first report, the researchers said their attention to Bitcoin at the time was skeptical.
The report published this time analyzes that the use and value of bitcoin has increased significantly over the past seven years. Bitcoin’s market capitalization exceeded $1 trillion for the first time in history last month, and contributed to the establishment of the entire ecosystem, including cryptocurrency exchanges and new products.
In particular, the analysts who wrote this report noted that the biggest change in the last 7 years has led to an increase in attractiveness from the perspective of investors in some universities and institutions, such as Yale and Harvard University. The attractiveness of the investment is its inflation hedging properties and limited supply. In addition, Tesla, an electric vehicle manufacturer, PayPal, Visa, and Mastercard, which are easy remittance platforms, suggested the possibility of introducing coin payments.
Researchers believe that Bitcoin has advantages as a global payment method such as decentralized design and foreign exchange transactions, fast and cheap money movement, secure payment channels, and traceability. According to these attributes, they also suggested that bitcoin could become a’currency vehicle for international trade’ in the next seven years or so.
However, he pointed out that there are also many dangers and obstacles that block Bitcoin’s progress.
“The regulatory authorities tried to limit the growth of Bitcoin, but the resistance may melt away now as seen in recent events,” the researchers explained. “Large institutional investors and others are choosing to participate and support the market.”
Regardless of the future, the report concluded that bitcoin’s presence helped to create a new terrain, and for all reasons it noted that bitcoin is at the tipping point.
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