Deutsche Bank, Germany’s largest financial institution, unveiled the bitcoin side of the’The Future of Payments’ report on the 17th (German time).
Deutsche Bank said that the market capitalization of bitcoin has exceeded $1 trillion, and predicted that the price of bitcoin could rise further as the number of institutional entry increases.
The report describes this phenomenon ‘Tinkerbell Effect‘ The Tingerbell effect is an economic theory that, as a fairy from the fairy tale Peter Pan, can exist only with people’s faith, value will eventually arise when the majority consider something worthwhile.
Deutsche Bank may continue to increase its bitcoin value, Weakness is that liquidity is low as an investment asset.Pointed out.
According to the report, last year’s bitcoin transaction volume was about 28 million BTC. This is equivalent to 150% of the total bitcoin quantity. On the other hand, Apple stocks traded 40 billion last year. That’s 270% of Apple’s total stock.
Deutsche Bank predicted that due to insufficient liquidity, the price of bitcoin is highly volatile due to supply-demand mechanisms or a small number of large-scale buy-sells.
Deutsche Bank pointed out that Tesla, which has only one eighth of car sales than GM or Ford, has a market cap that is five times higher than that of the two combined. “The perspective of looking at the model 3 has changed significantly,” he said.Bitcoin can also become the centerpiece of the digital currency era in the next 2-3 years.“He said.
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