Bitcoin reaches tipping point

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The most widespread cryptocurrency Bitcoin (BTC), which set a record this year when it exceeded the exchange rate of US$ 50,000 per BTC and came very close to hitting US$ 60,000 per BTC. According to economic correspondents it has reached a tipping point. What the virtual currency market experts and analysts have in mind is that in the future Bitcoin could become a recognized currency for international commodity trading and could replace the US dollar (USD), which has dominated for decades.

According to a survey by one of the largest banks in the US, Citi group, it may not take long and Bitcoin will become the currency of international trade, with its widest use in commodity operations.The rapid rise of Bitcoins over the past few months has forced large Wall Street players to reconsider their view of BTC. On 2 March 2021 at 7:31 am CET, BTC traded on the Coinbase digital currency market at an exchange rate of US$ 48,714.00 per BTC, with a daily decline of -3.04% against the USD.

Bitcoin is an internet open-source P2P payment network and also the crypto currency used in this network. Bitcoin’s main uniqueness is its full decentralization; it is designed so that no one, including the author or other individuals, groups or governments, can influence the currency, falsify, confiscate accounts, control cash flows or cause inflation. There is no central point in the network, and no one can make decisions. The final amount of bitcoins is known in advance and the release of bitcoins into circulation is defined in the network source code. There are minimal or no cost payments. The network has been operating since 2009 and it was created by a group of people known as Satoshi Nakamoto. According to cryptocurrency analysts Bitcoin is the only medium of exchange that can offset central banks printing money. 

As mentioned earlier Citi analysts think BTC is at the “tipping point” and could one day become the “currency of choice for international trade” as companies like Tesla and PayPal are embracing it and central banks are examining the possibility of their own digital currencies. “There are a host of risks and obstacles that stand in the way of Bitcoin progress,” the Citi analysts wrote. They also added “Bitcoin’s future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.” Originally created as a digital payment system to circumvent banks and other financial intermediaries, Bitcoin has since gained traction among major investors as a kind of “digital gold” that can act as a hedge against rising inflation.

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