http://e01-expansion.uecdn.es/assets/multimedia/imagenes/2017/12/28/15144763677618.jpg

The US bank considers that the cryptocurrency has weaknesses that will make it fail in the medium term.

Citi does not believe in bitcoin. The US bank considers that the famous cryptocurrency reflects features of real bubble and warns that it has a large number of contraindications that will eventually make it fail sooner or later:

1.-High volatility. For Citi, bitcoin has no specific use in financial markets, because its high volatility reduces its value as a means of change or unit of value, clear characteristics. "Its average volatility is six times higher than that of the most volatile emerging currency, it is a structural problem that derives from its design, with an almost fixed offer and a demand that fluctuates a lot," the analysts point out.

2.- Lack of efficiency. From the bank is also openly criticized the huge expenditure of resources required by transactions with bitcoins. "The bitcoin network now consumes as much energy as Denmark and is something that is going to be more, what looked like an elegant algorithm consumes a lot of resources and is something that can not be supported over time," they say. From the bank they hope that a new algorithm more efficient in the use of resources dethrones the king of cryptocurrencies in the medium term.

3.- Security. Security is another of the major drawbacks that the US giant sees in the massive adoption of bitcoin as the main currency. Recently, bitcoin has been the victim of strong cyber attacks that have broken several platforms. "Bitcoin portfolios have been stolen, computer attacks of this kind are common for all kinds of assets, but bitcoin is extremely difficult to trace so that the theft can be investigated."

Yesterday the bitcoin resumed the path of falls by backing almost 7% and put its exchange rate at $ 14,825. Despite the latest declines, the cryptocurrency shows a revaluation of more than 1,400% in 2017.

Citicoin
Citi analysts say they work in their own virtual currency, the citicoin. Nothing has been known about this project for more than two years and, despite the fact that financial sources maintain that it is still ongoing, it seems to be separated from the entity's usual activity.

Initially, and as detailed in 2015, the currency would be dedicated to internal uses and only once its success had been verified would it be transferred to the clients so that they could carry out the necessary operations.