Citigroup claims that bitcoin is approaching its status as the currency of choice in international trade due to giant firms such as Tesla and PayPal welcoming the currency and central banks vying to produce digital currency.
There is no denying that the future of Bitcoin is still uncertain due to various risks and obstacles, but the surge in interest among retail and institutional investors proves its global acceptance.
Around mid-2020, the crypto sector began to rise and has prompted major Wall Street players to reassess cryptocurrencies. For example, BNY Mellon, the oldest bank in the United States (US) offers protection services for bitcoin and other digital currencies.
Meanwhile, JPMorgan began to get serious with bitcoin when it repeatedly made price expectations on the asset and recently launched its digital currency, JPM Coin.
It is well known that from the beginning bitcoin and other cryptocurrencies became a hot topic because of its volatile features. The proof is that Satoshi Nakamoto's currency has depreciated over $ 10,000 after a week of soaring above $ 58,000.
Looks like a drastic shrink. But, based on records, the asset is actually still up over 60% for the year and 460% over the past 12 months.
Analysts say the bullish phenomenon this time is different from previous trends, including 2017 as the surge was driven by the involvement of institutional investors.
While there is confidence among institutional investors in bitcoin, there are still issues related to capital efficiency, insurance and protection, securities, and ESG considerations from Bitcoin mining.
According to Citigroup, compared to conventional payment systems, crypto is much better. But, when it comes to security issues, it is something that is hard to deny.
Meanwhile, Digiconomist revealed that bitcoin mining actually produces carbon which is almost comparable to New Zealand following high power generation with the use of high-powered computers.
Finally, one thing to admit, the COVID-19 era has created a new phenomenon in digital finance in the quest for fintech alternatives.
