With a market capitalization in excess of $1 trillion and a market price that has the potential to keep rising, Bitcoin has become “too important to ignore”. This is according to a new report by Marion Laboure, Deutsche Bank analyst and economist. Governments and central banks are aware that cryptocurrencies are not going to go away any time soon. Thus, they are making plans to regulate crypto operations.
Bitcoin And Volatility
Owing to its rather low liquidity, Laboure believes that Bitcoin would still remain very volatile. The volume of BTCtraded daily is just 1.9% that of gold. This is quite insignificant when compared to other assets and commodities. According to the Bank of America (BoA) said that Bitcoin is very volatile and cannot be used as a store of value.
Millennials And Cryptocurrency
What does the future hold for cryptocurrencies? It sure looks bright as they are here to stay. More than 30% of millennials spread across UK, Germany, U.S and China and several world leaders are of the opinion that cryptocurrencies will gradually take the place of fiat and debit cards with time.
As it stands now, BTC is the third largest currency based on circulation. It’s just behind the USD and Euro. Due to sharp appreciation, Bitcoin accounts for more than 40% of the greenbacks.
With the fact that governments and central banks are still very much around, BTC may not replace cash so soon.