We just had a chance to look at an assessment of Bitcoin’s value going forward from a top 3 financial services providers' report.
SUMMARY POINTS:
-They believe Bitcoin can become a major means of payment for online spending and that they could also emerge as a serious competitor to traditional money providers such as Western Union.
-They believe that although Bitcoin has been associated with underworld activities including aiding in avoiding high taxes, the fact that all Bitcoin transactions are publicly available and has a unique code-transaction history will ultimately deter underworld use.
SUMMARY POINTS:
-They believe Bitcoin can become a major means of payment for online spending and that they could also emerge as a serious competitor to traditional money providers such as Western Union.
-They believe that although Bitcoin has been associated with underworld activities including aiding in avoiding high taxes, the fact that all Bitcoin transactions are publicly available and has a unique code-transaction history will ultimately deter underworld use.
ADVANTAGES:
-They believe Bitcoin has clear potential for growth.
-It currently offers low transaction costs.
-An appealing alternative to cash in terms of security and counterfeiting.
-There is a finite supply of Bitcoins at 21 million (currently approx. 12 million or 57%)
DISADVANTAGES:
-Elevated price volatility: the dollar price of Bitcoin has moved 10% on a daily basis since its inception.
-One of the greatest risks to Bitcoin is an attack on third party exchanges.
CONCLUSIONS:
-There is so much speculation about Bitcoin at present that they feel the price has been bid up by that and not by true underlying fundamentals. They make the case for the value of a Bitcoin to reach $1300 USD, but that the value is not there yet.
-They believe Bitcoin has clear potential for growth.
-It currently offers low transaction costs.
-An appealing alternative to cash in terms of security and counterfeiting.
-There is a finite supply of Bitcoins at 21 million (currently approx. 12 million or 57%)
DISADVANTAGES:
-Elevated price volatility: the dollar price of Bitcoin has moved 10% on a daily basis since its inception.
-One of the greatest risks to Bitcoin is an attack on third party exchanges.
CONCLUSIONS:
-There is so much speculation about Bitcoin at present that they feel the price has been bid up by that and not by true underlying fundamentals. They make the case for the value of a Bitcoin to reach $1300 USD, but that the value is not there yet.