According to a new report published by the investment bank Deutsche Bank, Bitcoin is now "too important to be ignored" due to the current size of the main cryptocurrency on the market, whose capitalization has reached the $ 1 trillion mark this year.
Bitcoin's market capitalization of $ 1 trillion and the possibility of a continued rise in prices make it too important to ignore. And central banks and governments understand that Bitcoin and other cryptocurrencies are here to stay. Therefore, governments are expected to start regulating them later this year or early next year.
However, the investment bank predicts that the volatility of the cryptocurrency will remain high for some time due to its lack of liquidity compared to other currencies and assets. Deutsche Bank estimated that about 30% of transactional activity on the bitcoin network is related to payments . According to the bank, during the year 2020, the equivalent of 150% of the money supply of bitcoin in circulation was moved. In comparison, 40 billion shares of Apple were exchanged, which is equivalent to 270% of the total.
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The report makes a comparison between Tesla and Bitcoin, stating that it is necessary for the cryptocurrency to transform potential into results, as did the carmaker. Tesla, like bitcoin, has sparked several debates over whether this would be the future of cars or if that was just a “passing fad that’s going to die”. However, that sentiment has changed dramatically in the past 18 months when Tesla proved to be able to deliver cars like the Model 3 on a large scale. According to the bank, BTC must demonstrate its value as a means of payment to live up to its reputation. But what do you think about Deutsche Bank's reflections? Leave your opinion in the comments section below.Read More: Brazilian exchange token has 600% appreciation