Home Cryptocurrency Bitcoin is now ‘too important to ignore’, Deutsche Bank says

Bitcoin is now ‘too important to ignore’, Deutsche Bank says

by Gordon James

Bitcoin’s (BTC) $1 trillion market capitalization and its potential for further growth make cryptocurrencies too big to ignore, Deutsche Bank analysts say.

Deutsche Bank Research, the financial research arm of global banking giant Deutsche Bank, has released a report titled The Future of Payments that focuses exclusively on bitcoin: Series 2 Part III. Bitcoins: Could the Tinkerbell effect be a self-fulfilling prophecy?

In an 18-page study, Deutsche Bank Research describes the key features of bitcoin and analyzes the main drivers behind its historic price rise to $1 trillion.

Deutsche Bank analysts said the price of bitcoin could continue to rise as long as asset managers and companies continue to enter the market. The company noted that central banks and governments now understand that bitcoin and other cryptocurrencies are here to stay, so they should start regulating them by the end of 2021.

Despite rising valuations, bitcoin’s growth as an asset class could be hampered by its still-limited tradability and liquidity, Deutsche Bank Research warns. The real debate is whether the rise in value alone can be reason enough for bitcoin to become an asset class, or whether the lack of liquidity is a hindrance, analysts say.

In the short term, bitcoin is likely to remain highly volatile, Deutsche Bank analysts concluded, predicting a turning point for bitcoin in the next two to three years, when a consensus on bitcoin’s future could emerge.

Related Tags:

deutsche bank cryptocurrency pdf,deutsche bank digital currency,coindesk,bitcoin price,blockchain,dogecoin,Privacy settings,How Search works,Dogecoin,Software,current affairs magazine bitcoin,deutsche coin cryptocurrency

related posts