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The bank highlights there are a "host of risks" that bitcoin will likely face in the process of evolution. However, despite these hurdles, the largest cryptocurrency by market capitalization has a lot of opportunities, which means the market is only at the start of massive transformation of cryptocurrency into the mainstream, the bank adds.
Citigroup's Chief Operating Officer, Morgan McKenney, notes bitcoin is an investable asset, "but you will not make a range of daily payments with it."
"I cannot see it in the next 5 years being used in day-to-day commerce," McKenney added.
Citi's analysts also found that just over 2% of the activity in the cryptocurrency industry space had ties to illicit activity in 2019 and that total was down to only 0.3% in 2020. Self-cleaning of the market from illicit activities would likely drive more investors towards the digital currency space, the analysts believe.
In November 2020, Citibank's Managing Director, Tom Fitzpatrick, suggested that the price of bitcoin (EXANTE: Bitcoin) could hit $318,315 by the end of 2021 thanks to its consolidation in the status of digital gold in the 21st century.
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