CNBC reported on the 1st (local time) that bitcoin should be the currency of choice for international trade, argued by Citigroup, a large US bank.
Citigroup argued in this report that “there is an important inflection point that will determine whether cryptocurrencies such as bitcoin are recognized as mainstream currencies or will end in a bubble.”
City emphasized that cryptocurrencies such as bitcoin are expanding their base with the participation of many institutional investors, and that it is worth considering as a payment method in international trade.
Previously, large Wall Street banks avoided investing because Bitcoin had no intrinsic value and was similar to the 17th century tulip bubble.
But in recent months, major Wall Street banks have started looking at Bitcoin again. For example, Melon Bank in New York decided to invest in Bitcoin. Like Melon Bank, large banks that invest in bitcoin or prepare products are emerging one after another.
Bitcoin is at an inflection point where it can leap into the mainstream currency.
Recently, the price of Bitcoin has been fluctuating rapidly. After surpassing $58,000 on the 22nd of last month and hitting an all-time high, inflation concerns arose and the mark fell to the $43,000 mark. In less than 10 days, it plunged more than $10,000. Nevertheless, Bitcoin surged 60% this year and 460% year-on-year.
In particular, this rally is different from the previous rally. During the 2017 rally, Bitcoin was close to $20,000 and plunged 80% the following year. However, this time it is different, the City Group predicted. This is because a large number of temporary investors are participating.