As of recently, the world has finally opened its eyes to the immense potential Bitcoin carries in the market. The price of Bitcoin is rising at an immensely rapid rate, and along with that, the various ways in which it can be employed in the market are also being discovered and coming forward. Following recent data, due to its immensely high value, 5% of the Bitcoin stock may be used as a security guarantee by 2023.
When Bitcoin was first introduced, its value was almost worthless, and it was not favoured in the market. But for all that, over the years, the tables turned in favour of Bitcoin and digital currency. It shifted from a payment currency to a value store.
The worth of the coin is currently $50,000 and is projected to reach higher levels. Furthermore, in the coming years, the digital currency market is said to shift into a unit of account. Nevertheless, according to a recent report launched by Arcane Research, the future of collateral banking shall be dependent on Bitcoin and other related digital currencies. According to the report, Bitcoin is being employed as collateral recently. And in the future, the collateral income could rise to 1 million coins.
Moving forward, a sixty pages report named “Banking on Bitcoin: The State of Bitcoin as Collateral” was published recently. In the report, details regarding Bitcoin being the primary collateral asset were discussed. As of now, Bitcoin openly signifies 95% of open interests in the market. This proves the effectiveness of digital currency as a whole.
In the past year, the total number of Bitcoins represented in collateral grew by the amount of 1100%. Theoretically, it is assessed that this amount will be double the size by the end of 2023.
Globally, the collateral represents a $20 trillion market, and Bitcoin carries aspirations of dominating it. If Bitcoin is successful in this mission and can grip the $20 trillion, it will be known as the primary collateral asset in the global market. As a result, the overall worth of Bitcoin will rise to an alarming rate of $1 million each.
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