Deutsche Bank has published a report stating that bitcoin is too important to ignore, noting that it is now the third-largest currency in terms of the total value in circulation. In addition, the bank says that governments and central banks know that cryptocurrencies are here to stay and are expected to start regulating the industry this year.
Bitcoin Is Too Important to Ignore
Deutsche Bank Research published a report last week entitled: “Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?” It is part three of “The Future of Payments: Series 2.” The report author, research analyst Marion Laboure, Ph.D., wrote:
Bitcoin’s market cap of $1 trillion makes it too important to ignore. As long as asset managers and companies continue to enter the market, bitcoin prices could continue to rise.
At the time of writing, the price of bitcoin stands at $57,455 and the cryptocurrency’s market cap is approximately $1.07 trillion based on data from markets.Bitcoin.com.
The report also discusses bitcoin as a commodity, currency, and equity. While noting that “bitcoin transactions and tradability are still limited,” the report states that the cryptocurrency’s “market cap is among the top ten, both as a currency and as a stock.” Comparing bitcoin to fiat currencies, the report details:
In terms of total currency in circulation, bitcoin is the third-largest in the world, after the US dollar and the euro.
“This is mainly due to the vast increase in bitcoin’s value recently,” the report continues, adding that “In early 2019, bitcoin represented ‘only’ 3% of the US dollars in circulation, but in February 2021 it surged beyond 40% of the US dollars in circulation.” The fourth-largest currency, according to Deutsche Bank Research, is the Japanese yen, followed by the Indian rupee.
Laboure asserted that “Bitcoin’s value will continue to…