Bitcoin now the third largest cryptocurrency

Bitcoin Now the Third Largest Currency, Too Important to Ignore; Deutsche Bank

Deutsche Bank is one of their latest report about Bitcoin said; Bitcoin is too important to ignore, stating that it is now the third-largest currency. Also, governments and central banks know that cryptocurrencies are here to stay and are expected to start regulating the industry this year, the bank said. 

Why Bitcoin Is Too Important to Ignore

Through Deutsche Bank Research’s report last week, Marion Laboure, Ph.D,.a a research analyst said; “Bitcoin’s market cap of $1 trillion makes it too important to ignore. As long as asset managers and companies continue to enter the market, bitcoin prices could continue to rise.“

The report is titled, “Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?” It is part three of “The Future of Payments: Series 2.” He also cites bitcoin as a commodity, currency, and equity, noting that its transactions and tradeability are still limited. Regardless of the imitation, the report states that the cryptocurrency’s “market cap is among the top ten, both as a currency and as a stock.” Comparing bitcoin to fiat currencies. 

In detail, it stated;

In terms of total currency in circulation, bitcoin is the third-largest in the world, after the US dollar and the euro while the Japanese yen is the fourth currency followed by the Indian rupee

The report said that Bitcoin as the third-largest currency is due to the vast increase in bitcoin’s value recently,” 

The report continues as; 

“In early 2019, bitcoin represented ‘only’ 3% of the US dollars in circulation, but in February 2021 it surged beyond 40% of the US dollars in circulation.” 

The author claimed that “Bitcoin will continue to rise and fall in value depending on what people believe it is worth, likening it to Tinkerbell Effect.” She explainedTinkerbell Effect as a “recognized economic term stating that the more people believe in something, the likelier it is to happen based on Peter Pan’s assertion that Tinkerbell exists because children believe she exists.”

The analyst through her report also noted that central banks “are also speeding up research on their own central bank digital currencies (CBDCs) and launching pilots.”