Might people (who are already unconvinced) change their opinion of Bitcoin? A host of businesses are now looking at the asset for their assets to hedge inflation, a reality that has recently established Bitcoin as a common value asset store for merchants and companies alike. But some analysts expect the ability of BTC to become a global currency.
Recently, Citi Bank’s latest study said that, considering Bitcoin’s “global scope and neutrality,” the commodity might become the “currency of choice for foreign trading.”
The study claimed that a decentralised blockchain such as Bitcoin should be “prefered” as government or outside agencies could not intervene with the supply of the commodity. Such properties may help to decouple trade from political shocks.
For example, the dollar is always the default trade currency today, but growing political tensions, particularly between the US and China, cause “concerns about the future.” The study of the Citi Bank stated:
“A focus on global reach and neutrality could see bitcoin become an international trade currency. This would take advantage of bitcoin’s decentralized and borderless design, its lack of foreign exchange exposure, its speed and cost advantage in moving money, the security of its payments, and its traceability.”
Citi Bank identified Bitcoin as “the most well-established and liquid cryptocurrency,” which makes the asset the “likely beneficiary of a move to a new crypto trade currency.”
However, there are already certain hurdles that stand in the way of this prediction coming true. This include the speed of transfers and security problems. While Visa appears to be handling payments faster than Bitcoin, the digital asset is doing better than conventional payments.
While Bitcoin poses “a variety of threats and challenges,” some of which come from legislation, as future barriers are being balanced against rewards, Bitcoin seems to be at the “tip stage” and may even turn cryptocurrencies into mainstream.
The study acknowledged Bitcoin’s shift from a retail-focused campaign to being an institutional favourite. The primary indication of this fact is that owing to its limited availability, BTC is sometimes called ‘digital gold.’
In addition, exchanges, trading, data and custody providers are revamping their services with unique improvements to ‘adjust the criteria of institutional investors.’
Across the market, several businesses have jumped in to support other enterprises who want access to Bitcoin. Recently, the British blockchain company BCB Group has unveiled a new programme devoted to supporting companies who wish to incorporate bitcoin to their treasuries. Even Coinbase is aiming to serve businesses who want to “hedge or diversify their surplus cash” with crypto. The exchange was also behind Tesla’s famous investment in Bitcoin and helped MicroStrategy as well.
Across the sector, some companies have stepped in to help other firms that want to access Bitcoin. Recently,
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