Wall Street Banks Divided on Bitcoin

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It’s no secret that financial institutions and organizations dislike the decentralized finance idea. However, the times are changing and more and more institutions are seeing the benefits of Bitcoin and altcoins. They’ve made a great case as money alternative so far, with the leading digital currency currently trading for over $50K. Bitcoin has seen a massive-scale adoption in recent months. It has transformed many digital markets including Bitcoin gaming and apparently, Wall Street is now interested in it too.

According to a latest report, a group of investment banks have expressed divergent views on Bitcoin and cryptos. This is somewhat unusual since DeFi projects were never widely popular on Wall Street or in banks. The cryptocurrency boom in the past 12 months have led to groups changing their opinions, with Citigroup the first bank to explain its views.

Time for a Change

A Citibank report that recently emerged online dubbed Bitcoin a potential “preferred currency for global trade” in the future. This report fired up many prospective crypto bulls including Anthony Scaramucci, and of course, was one of the reasons for a price spike.

The report talked about concerns on capital efficiency, insurance, and custody as well as the environmental impact of cryptocurrency mining which has been under a lot of heat lately. In its conclusion, the report predicted that short-term developments will essentially give a clearer look into the future of the cryptocurrency. It will either spark mainstream acceptance or bury it deep underground.

Of course, everyone’s hoping it’s the first. Bitcoin has fueled the rise of many industries lately, including Bitcoin casinos. While it’s still not accepted in all jurisdictions, the number of casino gaming sites that accept cryptos is on the rise. Bitcoin has also revolutionized online payments and merchants, allowing people to buy stuff with a single click.

After seeing the Citibank report, the Bank of America and Morgan Stanley have supported those views. This was unheard of in the past, but it’s clear that times are changing in the midst of a pandemic.

Investors on Notice

The total Bitcoin returns this year are the highest they’ve ever been. This has put many investors on notice and sparked a new mining craze which has led to shortages in GPUs. Bitcoin’s annual energy consumption and environmental impact is becoming a big problem, yet miners are having none of it. All that mining has led to new price heights every week, bringing in a bunch of new investors and shifting the global stance on cryptocurrencies.

Experts say that the improved liquidity, growing interest from investors, and evolving regulatory framework have created optimal conditions for Bitcoin and cryptos to thrive. Of course, investors still need to be educated on the matter before they actually invest. Many banks and financial institutions are still hesitant to enter the market, but major companies such as Tesla are helping cryptos grow.

Tesla founder Elon Musk has just announced that the company now accepts Bitcoin as a payment option for its cars, becoming the first major company to accept Bitcoin on such a scale.