In fact on page 2 they state::
“Bitcoin’s market cap of $1 trillion makes it too important to ignore”.
This is an official report by Deutsche Bank Research, entitled “Part III. Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”, and which is part of a larger study entitled “The Future of Payments: Series 2”.
This report on Bitcoin is a 19-page long PDF written by economist Marion Laboure, from the Department of Economics at Harvard University, who has also worked with the Central Bank of Luxembourg and the European Commission, specializing in public finance, monetary economics and financial technology.
In other words, she is a real expert in the field, who has indeed produced a very thorough analysis.
Deutsche Bank: why bitcoin will continue to rise
In addition to deeming Bitcoin too important to ignore, Laboure also says that as long as asset managers and corporations continue to enter the market, BTC prices may continue to rise.
She also believes that the price of Bitcoin could be influenced by what is called the “Tinkerbell Effect”, which is the idea that if more people believe in something, the more likely it is to happen, just as in the Peter Pan fairy tale Tinkerbell exists only because children believe it does.
Laboure also adds that central banks and governments are understanding that cryptocurrencies are here to stay, so they should start regulating them as early as this year or the beginning of the next.
The economist also says that it is estimated that less than 30% of transactional activity in bitcoin is related to payments, while the rest is largely related to financial investments, but with still low liquidity. In 2020, 28 million BTC were reported to have been traded, representing 150% of the total number of bitcoin in existence, while for example for Apple shares this figure was 270%.
For this reason, the price is expected to remain volatile.
Laboure’s analysis is thorough, objective and realistic, which is actually not so common in works of this nature.