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LONDON (Reuters) – Bitcoin is at a “tipping point” and could become the currency of choice for international trade or face a “speculative implosion,” analysts at Citi said.
With the recent embrace of companies like Tesla Inc and Mastercard Inc, Bitcoin could be in the beginning of a massive transformation to become mainstream, Citi said in a report.
The growing participation of institutional investors in recent years contrasts with the strong retail focus for most of the last decade, he added.
If businesses and individuals gain access through digital wallets to the central bank’s planned digital cash and so-called stablecoins, the global reach, traceability, and quick payment potential of the popular digital currency could see its use for commerce. be drastically expanded, Citi said.
The surge in interest took bitcoin to a record $ 58,354 and a market capitalization of $ 1 trillion. However, it withdrew more than $ 11,000 from those levels in the past week due to questions about the sustainability of such high prices.
“There are a number of risks and obstacles that stand in the way of Bitcoin’s progress,” Citi analysts wrote. “But weighing these potential hurdles against opportunities leads to the conclusion that Bitcoin is at a tipping point.”
Bitcoin was trading 3.9% higher at $ 46,980 on Monday, almost 63% higher so far this year.
(Information from Thyagaraju Adinarayan; edited by Tom Wilson)
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