A new report by Deutsche Bank says that bitcoin is now “too important to ignore” given its $1 trillion market capitalization.

The report suggests bitcoin’s price could continue to rise as long as the cryptocurrency keeps attracting entry from asset managers and companies. Its volatility is expected to remain unchanged, given its limited tradability. Last year, 28 million BTC changed hands, equivalent to 150% of the total supply in circulation, while 40 billion Apple shares were traded, equivalent to 270% of the total.

Deutsche Bank’s report estimates less than 30% of the transaction activity on the Bitcoin network is related to payments. Bitcoin, it adds, must transform its potential into results, the same way electric car marker Tesla has done.

The report claims bitcoin’s current valuation reflects the shift toward cross-border digital currencies, and the cryptocurrency needs to demonstrate its value as a payment method to live up to its reputation.

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Source: https://www.cryptocompare.com/email-updates/daily/2021/mar/19/