As per an article by Citigroup, the world’s biggest digitalcurrency, Bitcoin (BTC), is at a turning point in its history. According to Citi researchers, Bitcoin has hit a “tipping point” where it will either become the currency of choice for foreign trade or undergo a speculative boom.
Citi analysts believe Bitcoin is on the verge of becoming popular, as per a Reuters report published recently. As per the document, previous big Bitcoin transitions by firms like Tesla and Mastercard have sparked Bitcoin’s great potential.
“There are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point”, stated Citi analysts.
Cryptocurrency advances such as central bank digital currencies and fiat-pegged stablecoins, according to Citi analysts, could assist Bitcoin gain mass acceptance.
The reports arise during a massive correction in the digital currency industry, with Bitcoin falling below $44,000 previously after reaching a new record peak of over $58,000 earlier this month. As per data from Cointelegraph’s Bitcoin price index, Bitcoin is currently trading at $47,285, up about 4.5 percent in the last 24 hours.
International legislation, as per a few analysts, may be one of the most important obstacles to institutional investors accepting Bitcoin. Rebecca Patterson, Bridgewater’s director of investment analysis, stated on Feb. 24 that legal clarity surrounding Bitcoin will fix several of the digital currency’s toughest challenges, such as excessive uncertainty and poor liquidity.