Citi: Bitcoin is "at a critical threshold"

Citi analysts stated that Bitcoin is at a critical threshold, stating that the cryptocurrency will either become the currency of choice for international trade or experience a "speculative internal destruction."

Citi: Bitcoin is "at a critical threshold"

According to the research report released by Citi, bitcoin could be beginning a major transformation towards mainstream evolution, with the validating steps of Tesla Inc and Mastercard in the near future.

In recent years, institutional investors have begun to be included in the crypto money market, where individual investors have invested heavily in the last decade.

According to Citi, if businesses and individual investors can access central bank-planned digital cash or "stablecoin" through their digital wallets, the global reach, traceability, and potential for fast payments could make it a preferred choice for international trade.

Designed as a means of payment, bitcoin is little used in the trade of major economies due to its high volatility and partly due to its costly transactions. However, the use of bitcoin has been increasing in some emerging market economies such as Nigeria in recent years.

Citi stated that for the transformation of bitcoin into the actual currency where the dollar is today in global trade, the participation of more institutional investors in the bitcoin market and tighter control of bitcoin by financial authorities must be ensured.

In line with the thesis that Bitcoin will protect against inflation, the crypto currency has recently reached a record level of $ 58,354 and a market value of 1 trillion.

However, bitcoin had dropped by more than $ 11,000 in the past week, as question marks emerged about the sustainability of such high prices.

Bitcoin is trading at $ 47,284 today with a 4.5 percent gain. Bitcoin's year-to-date rise has been over 60 percent.