In the new report, Deutsche Bank analyst and French economist Marion Laboure writes that Bitcoin can no longer be ignored after its market cap eclipsed $1 trillion:
Bitcoin’s market cap of $1 trillion, and scope for a continued rise in prices, makes it too important to ignore. And central banks and governments understand that Bitcoin and other cryptocurrencies are here to stay. Thus, governments are expected to start regulating them late this year or early next year.
She suggests that Bitcoin’s massive market cap is justified by the Tinkerbell Effect. Named after a fairy from Peter Pan, the term is used by economists to explain the power of belief: something is valuable only because people believe that it has value, similar to how children believe in Santa Claus.