Deutsche Bank says Bitcoin is an alternative, decentralized financial system that is too big and important to ignore, while Goldman Sachs predicts a major evolution in the regulation of the crypto industry.
One of the largest banks in Germany, the Deutsche Bank published a report where he addresses the complexity and current importance of Bitcoin (BTC), the biggest cryptocurrency of the markets by capitalization, and also the most robust and powerful alternative financial system in the industry, which recently marked a new historical high in its hash rate, its computing power.
Bitcoin, which leads the digital market, has become a phenomenon. With more than 100 million users by the end of 2020, dozens of companies investing large sums of their capital in the cryptocurrency, and many others including it as a means of payment, its fundamental role in the future is undeniable.
The bank highlights that the incredible growth and appreciation that this cryptocurrency has had in recent years has led it to occupy third place among the most valuable currencies circulating in the market, ranking only after the US dollar and the euro. To date, Bitcoin's capitalization has surpassed that of the Japanese yen and the Indian rupee, with a value above 1,12 trillions of dollars.
Source: Deutsche Bank
This new reality is drawing even more attention from regulators around the world. Goldman Sachs CEO, David Solomon, expressed during an interview with CNBC that a “big evolution” on the regulation of Bitcoin and cryptocurrencies is about to come. These words coincide with the statements of Deutsche Bank on Bitcoin, which has become a cryptocurrency with too much importance that it can no longer be ignored, and with the words of the former SEC chairman, Jay Clayton, which last week noted that new regulations for the crypto industry are coming soon.
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The basis of money today and the future
Deutsche Bank claims that Bitcoin could be the basis of the money of the future. This cryptocurrency matches and surpasses in properties several of the known forms of money, past and present, such as gold and fiat money. Its qualities of portability, durability, divisibility, security, manageability, and above all fungibility and scarcity make Bitcoin the new “digital gold” or “gold 2.0”.
In just over a decade, Bitcoin has become an interchangeable, convertible, reliable currency that is easy to carry and handle, does not wear out, and cannot be counterfeited; it is also completely decentralized, transparent, secure and highly reliable.
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These properties have made Bitcoin a highly sought-after digital currency in the industry, both by retail and corporate investors. Even Goldman Sachs investors are asking for more access to Bitcoin exposure products, as the bank's analysts reported in March. To meet this growing demand, Goldman Sachs decided to incorporate BTC services. Earlier this month, the American bank confirmed that it is close to launching Bitcoin and other cryptocurrency services for private wealth management (PWM) clients. The bank will resume its Bitcoin trading desk to offer a broad product for crypto investment.
Goldman Sachs analysts revealed during an interview on CoinDesk TV that the new services will be available to preferred investors and clients whose capital is sufficient to invest in this cryptocurrency. The bank also confirmed the appointment of Mary Rich as the new global head of the Digital Assets Group of the bank, who will be in charge of advising the bank's clients about the bank's new services.
Bitcoin cannot be banned
The degree of adoption of Bitcoin in all sectors of society is driving regulators to study how to create clear regulations with which they can regulate cryptocurrencies in the markets, to ensure their healthy development.
Finally, SEC Commissioner and Bitcoin advocate, Hester Peirce, he pointed recently that US regulation regarding cryptocurrency can and should change. However, banning Bitcoin would be practically impossible to do, since the entire Internet would have to be shut down, Peirce said during a virtual discussion.
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At press time, Bitcoin (BTC) is trading at $60.240 on the markets. Since the beginning of the year, this cryptocurrency has appreciated by more than 107%.
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