Top German banking services provider Deutsche bank is betting big on Bitcoin and it has given an open statement that Bitcoin is too important to be ignored now. The bank, like other banks was skeptical of the digital currency over the years but it has since done a 180 degree turn on the cryptocurrency and is looking to get into it through the proper channels.
According to Deutsche Bank Research, the analytical department of the financial services organization, Bitcoin and other digital currencies are expected to have a further boom in the coming years and therefore, no one can afford to ignore them anymore. According to a recent research titled “The Future of Payments: Series 2 Part III. Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”, the bank’s analytical think tank gave a detailed analysis on the cryptocurrency and digital currency arena. The researchers note that the cryptocurrency with over $1 trillion worth of market capitalization is a big deal and it isn’t likely to stop here. The path ahead may result in prices getting higher and higher as more and more hedge fund managers and investment banks enter the arena.
According to the German bank’s report, the sector is likely to have strong governmental regulation by the end of 2021. This is the time around which the cryptocurrency is expected to peak its current rise and as a result, the rising influence will force the governments to react and put in place necessary measures. The exact nature of the new measures are unknown at the moment and will depend on a large number of factors. Overall, the cryptocurrency is likely to face greater scrutiny and control in the near future.
The Bank report also predicts that Bitcoin is expected to have even greater volatility in the near future as various new factors come into play. However, this is a general statement from the research as the volatility has decreased over the years for the cryptocurrency and is likely to be so in the near future. At the same time, it can be said that Bitcoin is more volatile than other conventional assets and so much so that many people are afraid of it. However, as the asset class matures and more conventional investors and fund managers enter the space, it is expected to mature further and get stable with time.
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