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Bitcoin is too important to ignore: Deutsche Bank

A new report focused on bitcoin, from the German bank Deutsche Bank, highlighted that the trillion dollars of capitalization of the cryptocurrency makes it too important to ignore. The report, released this Thursday, March 18, assured that the cryptoactive is here to stay, but will maintain its volatility in the markets.

In the investigation titled “Bitcoins: can the effect Tinkerbell (Tinkerbell) become a self-fulfilling prophecy? », The analyst Marion Laboure highlighted that, in the long term, the cryptocurrency must transform its potential into results , if you want to keep your value proposition.

Laboure compared BTC’s situation to that of Tesla, Elon Musk’s electric car company. According to the researcher, Bitcoin would have the challenge of transforming finances, while the car factory has another great challenge: to be disruptive in the automotive world based on fossil fuels.

In theory, according to the analyst, both sectors are transforming and both Tesla and Bitcoin are leaders in their segments. The hypothesis is that the vehicle company would continue to dominate its market and Bitcoin his. However, to achieve this objective, both must maximize their potential.

Regarding the boom in the price of the cryptocurrency, Laboure indicated that, as long as companies and fund managers continue to enter the market, the bitcoin prices will continue to rise. In relation to this point he added:

The value of bitcoin will keep going up and down based on what people think it is worth. This is sometimes called the ‘Tinkerbell effect’, a recognized economic term that states that the more people believe in something, the more likely it is to occur, based on Peter Pan’s claim that Tinkerbell exists because children believe it exists.

Bitcoin would continue to gain global adoption

Laboure mentioned another aspect so bitcoin should not be ignored. It is about the continuous rise in prices. The general sentiment that exists, among banks and governments, is that BTC and other cryptocurrencies will not back down.

The bank included a graph in its report on how many times Bitcoin has been declared “dead” over the years. Source: Deutsche Bank Research.

With this as a premise, the governments would apply new regulations at the end of 2021 or at the beginning of 2022 for greater control. This occurs because, according to the researcher, at least 30% of the transactional activity of bitcoins is related to the payment of goods and services. The rest is used as financial investment.

«The next two or three years should be a turning point for Bitcoin. Consensus about its future may emerge as people follow the evolution of the digital currency, “added the bank’s report that BTC is a digital token” without backing and without intrinsic value. “

In the past, Deutsche Bank has mostly referred to cryptocurrencies in a positive light. In December 2019 the institution said that crypto assets will be the alternative to national currencies by 2030, according to a report released by CriptoNoticias.

More recently, in November last year, the bank was more there and assured, in relation to digital currencies, that they as a financial institution were ready for the next “age of money”.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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