Bank of America responded to a statement by the Central Bank of China and calculated the fair price for Bitcoin
Translation of the article on Business Insider.
The game has just changed.
Bitcoin, a bizarre electronic currency that appeared as if from nowhere and captured the headlines of the entire financial market, is currently being closely watched by one of the largest Wall Street firms as a means for financial transactions.
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“We believe Bitcoin can become one of the main means of payment in the field of e-commerce and can turn into a serious competitor for traditional money transfers,” wrote David Woo, currency strategist at Bank of America Merrill Lynch, in a 14-page document for customers. “Bitcoin, as a medium of exchange, in our opinion, has great potential for growth.”
This very unstable cryptocurrency suffered this morning a large depreciation from 1240 to 870 dollars, immediately after the People’s Bank of China announced a restriction on working with it for financial institutions of its country, so Wall Street’s close attention to it turned out to be inevitable, given flow USD / BTC at the moment.
Here is a quote from a Bank of America document:
“Is bitcoin a bubble?” Wu asks. “If we assume that Bitcoin, firstly, becomes a major player in e-commerce and remittances, and secondly, it becomes a significant savings instrument with a reputation close to silver, our fair price analysis assumes the maximum market capitalization of BTC in the amount of 15 billion dollars, that is, 1BTC = 1300 US dollars. This suggests that the predicted increase in prices for Bitcoin 100 times in the next year is under threat and so far contradicts the fundamental analytical principles. ”
We expect other Wall Street analysts to follow the example of Bank of America to provide their opinions.
***
I can not issue an article as a translation, so here is a link to the original article .
UPD:
Link to the original report of the bank.
The game has just changed.
Bitcoin, a bizarre electronic currency that appeared as if from nowhere and captured the headlines of the entire financial market, is currently being closely watched by one of the largest Wall Street firms as a means for financial transactions.
')
“We believe Bitcoin can become one of the main means of payment in the field of e-commerce and can turn into a serious competitor for traditional money transfers,” wrote David Woo, currency strategist at Bank of America Merrill Lynch, in a 14-page document for customers. “Bitcoin, as a medium of exchange, in our opinion, has great potential for growth.”
This very unstable cryptocurrency suffered this morning a large depreciation from 1240 to 870 dollars, immediately after the People’s Bank of China announced a restriction on working with it for financial institutions of its country, so Wall Street’s close attention to it turned out to be inevitable, given flow USD / BTC at the moment.
Here is a quote from a Bank of America document:
Warehouse finance shadow economy?
A Chinese government document states that bitcoin can help citizens avoid high taxes, state capital controls and confiscations. At the moment, there is a correlation between the volume of Chinese yuan against the total volume of currencies on the BTC exchanges and the growth of the price for bitcoin - on the chart above.
However, the fact that all transactions with Bitcoins are publicly available, and that each Bitcoin has a unique transaction history that cannot be changed - may ultimately protect it from using on the black market.
“Is bitcoin a bubble?” Wu asks. “If we assume that Bitcoin, firstly, becomes a major player in e-commerce and remittances, and secondly, it becomes a significant savings instrument with a reputation close to silver, our fair price analysis assumes the maximum market capitalization of BTC in the amount of 15 billion dollars, that is, 1BTC = 1300 US dollars. This suggests that the predicted increase in prices for Bitcoin 100 times in the next year is under threat and so far contradicts the fundamental analytical principles. ”
We expect other Wall Street analysts to follow the example of Bank of America to provide their opinions.
***
I can not issue an article as a translation, so here is a link to the original article .
UPD:
Link to the original report of the bank.
Source: https://habr.com/ru/post/204976/
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