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Deutsche Bank thinks Bitcoin is too important to ignore

Bitcoin with its $1 trillion market capitalization is now “too important to ignore,” according to Deutsche Bank.
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Deutsche Bank was founded in Berlin in 1870. It is now headquartered in Frankfurt, Germany, and operates in 58 countries throughout the world. 

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According to a report the bank issued on Wednesday titled “The Future of Payments: Series 2 Part III. Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”, Bitcoin with its $1 trillion market capitalization is now “too important to ignore.” 

Even though it will remain a very volatile currency, Deutsche Bank expects the price of bitcoin to keep on increasing due to new investors and companies approaching the cryptocurrency in general, and Bitcoin in particular.

The bank approximates that the amount of bitcoin transactions associated with payments is less than 30%. 28 million BTC were traded in 2020. This is equivalent to 150% of the total bitcoin available.

The report also said that governments are realizing that cryptocurrencies are here to stay, so they will begin their regulation by the end of the year. Bitcoin’s growth could be obstructed because it is not yet fully tradable nor liquid.

“The real debate is whether rising valuations alone can be reason enough for bitcoin to evolve into an asset class, or whether its illiquidity is an obstacle,” the bank’s analysts declared.

Bitcoin is expected to make a turning point in two or three years when an agreement arises in the future.

Do you think this is the time to invest in cryptocurrency? Sign up, and we will help you to take your first steps into digital assets! Deutsche bank.

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