Where is the Bitcoin heading? This question concerns investors not only in view of the current price fluctuations. In addition, the digital reserve currency is now facing a directional decision regarding its future acceptance and use, think the experts at the US investment bank Citi.
The current Citi study shows that Bitcoin could one day become the "primary currency for international trade". However, there are still some obstacles that make it difficult for Bitcoin to get there. Therefore, the future of the cryptocurrency is still uncertain, but short-term developments could already provide a directional decision.
As more and more institutional investors have recently invested in Bitcoin and large corporations such as Tesla and Square have added it to their balance sheets, the cryptocurrency's standing has massively strengthened and contributed to the recent, rapid price increase. The growing demand on the part of investors also ensures that traditional investment banks have to deal with the topic as well.
In order to be considered by institutional investors across the board, cryptocurrencies still have to overcome a number of challenges, the Citi analysts point out. These include issues such as capital efficiency, insurance and safekeeping, as well as ESG criteria. Security issues are also an issue, but compared to traditional payments, cryptocurrencies tend to perform better in this regard.
