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Bank of America says Bitcoin could become a 'major means of payment'

Analysts at Bank of America Merrill Lynch issued the bank's first research report today on Bitcoin, the virtual currency that approximates cash on the internet, concluding that the currency has the potential to become a "major means of payment for ecommerce" as well as a "serious competitor to traditional money transfer providers."

Assuming Bitcoin becomes mainstream, Bank of America currency strategists estimate it is worth $1,300 apiece. But with the value at $1,000 today and increasing rapidly, it is in danger of "running ahead of its fundamentals," they write.

The report also notes that the rapid jump in Bitcoin's value — which was just $100 in August — correlates with interest in the currency coming from China.


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great news!

thanks for posting. someone asked me to post this from my other thread but i got too busy.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

meekandmild's picture

Is the price of Bitcoin increasing or is the $ losing value?

or maybe both?

800 Pound Gorillas

OK here I go asking stupid questions and making un-informed stupid comments. Certainly the Bit Coin rage seemed very interesting, rebellious, and anti establishment... my kind of currency. However there seems some obvious questions about this (fad?) that have not been addressed (at least not that I've seen)... therefore the subject of this comment: 800 lb gorillas in the room sitting next to us, maybe even in our laps.

1. Just who is this mystery entity that created it, Satoshi Nakamoto? Why did they develop this network? What do they get out of it? Why wouldn't they profit?
2. Supposedly its an anonymous and safe process to transact moneys, products etc. without paying any middlemen a cut. However lately esp. since the value(?) has soared recently... there have been robberies of individuals bitcoin wallets, from Australia to Holland. It is after all electronic and like the rest of internet, subject to manipulations.
3. If the banks, Bernanke, etc are embracing the idea of Bitcoin does that mean that it WILL become status quot... is it already... in fact the beginning of the NO CASH, everything done electronically? Could it be meant to "tank" the dollar, make it irrelevant and everyone just voluntarily convert happily to bitcoin. Then when everyone is on it, REGULATE however "they" want?
4. How is it that when you profit on anything... say like stocks that increase in value, that one wouldn't be required to claim that profit and pay taxes on it. You know like the bicoins you acquired at $30 now being at $1200. So the IRS or supposedly no one else can even know how many bitcoins you have or if you even have any. So do people claim it when supposedly no one can check or investigate or prove what you have? The IRS won't find a way to monitor your wealth, your bitcoin wallet?

Could it be that the Bitcoin thing is the ultimate weapon for the "powers that be"? All banking and purchases via the Bitcoin network? Eventually when its too late to turn back "they" monitor it, they take a cut of transactions (remember when Paypal was free?), the IRS takes their cut without you actually having to do anything, and the value of Bitcoin is regulated and manipulated by the same entities that manipulate the value of EVERYTHING ELSE (say gold and silver just for starters)? Remember in-spite of the so-called encryptions its still an electronic thing and to me that means it can and probably will stack the deck... against everyone but the ones that wrote the script/program.

God forgives always. Man forgives sometimes. But Nature never forgives.

Your analysis

is right on point. Digital currency is the TPTB's ultimate wish since it will be total control. When people started to bring out real money as an alternative, they were sent to prison with very long sentences. Real money cannot be spit out of a printing press like FRNs, and with Digital Currency, they won't even have to invest in paper nor ink - they'll be Going Green!
When you research the money system throughout history, real money was used for thousands of years - gold & silver - and in 1913, the Federal Reserve Act gave absolute power to a cabal of banksters. They proceeded to deceive people to use FRNs backed by hot air, and began to steal people's wealth through inflation. Also, they started to take over all businesses since they have unlimited funds. If people believe Digital currency is real money then I have some Low Fat, Non-GMO Digital Food I'd like to sell them. The world's economic system is TPTB's most prized jewel, so they won't hesitate to put a bullet in a president if he wants to take that control away from them (EO 11110). So if they haven't come down on Bitcoin (I would rather call it Bit-Con), it is because this is playing right into their hands. Why? Because the majority of currency that exists, and is used to trade in the Stock Exchanges daily (trillions), around the world, is purely digital, and they have the most to lose if people don't accept digital currency. If all the "money" they claim to have in their portfolios existed in paper currency, all paper money would be worthless. If people think our yoke is heavy with Fiat currency, just wait until our yoke becomes digital - it will truly be a prison planet.


The price of bitcoins are not interesting for the average joe

If you don't understand don't play. That is the fundamental rules of Investing. Most people won't and can't afford 1000 bucks for 1 coin. The majority of the working class lives on their weekly paychecks.now if you can get some of those folks to get loans in order to buy bitcoins this might have a shot in surviving. But in the real world most people like to hold on coins like gold and silver since these metals are needed to keep technology progressing to the next era.But the problem with that is most folks do not even play the physical game neither . needless to say I have more faith in the real stuff. This is my opinion on how I see it.

you don't have to buy a whole btc

just like you don't have to buy a whole oz of gold. you can by fractionals.
the average joe can throw a $100 or 2 or 3 at it and come back in a year and see what happens.

gold is mostly psychological as silver can replaced almost all of it's industrial uses at a fraction of the cost.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

With friends like this ...

Assuming Bitcoin becomes (1) a major player in both e-commerce and money transfer ...

The suggested maximum value they're giving is what bitcoin will be worth when it is a major player in e-commerce (it's not there yet) and money transfer (not there yet eiether).

What they mean by major player in e-commerce is 10% of global on-line shopping (page 7). That part accounts for a bitcoin value of 1BTC = $433.

What they mean by major player in money transfer is that it becomes one of the top three players in the industry. That adds another $390 of value per bitcoin, bringing the total for this part to $823 per bitcoin.

... and (2) a significant store of value with a reputation close to silver, ...

AND also assuming that it will have a reputation as a store of value close to silver. Their calculation here seems a bit screwy to me -- they ratio of volatility metrics for gold over bitcoin, multiplied by the amount of gold in the world, then dividing by 60 because that's the ratio of silver to gold. WTF? The main point is that it can't act as a store of value while the valuation is swinging so wildly.

... our fair market value analysis implies a maximum market capitalization of Bitcoin of $15bn (1BTC = 1300 USD)

So *if* ten percent of all e-commerce in the world were done in bitcoin, and *if* bitcoin handled enough money transfer business to be in the top three of that industry, and *if* it were used as a store of value with a reputation comparable to that of silver, it's fair market valuation would be about a 25 percent gain from here.

No publicity is bad publicity though. And a bright spot in their analysis for bitcoin fans is that they think it will be a "winner takes all" market.


And I am saying.....do NOT do

And I am saying.....do NOT do business with BOA...EVER!

Be Your Own Media!!!

its getting out of the realm of being affordable

at this point, damn what did it start off at?

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

If BoA is talking about BitCoin

in a positive light, then they already have a scam ready to bring into Law. Lobbyist are probably already on stand-by with written drafts in-hand.

My understanding of BitCoin is elementary at best, but in general, I believe it can be a good thing if Major Banks keep their hands off. They always want to make things worse for you and I and better for themselves. I'm an expert when it comes to the intentions of Central/Big Banks ;)

Matter of fact, I'd say about 75% of DP'ers are experts in this same category.

If you don't know your rights, you don't have any.

You may have read right over it

but they said 'Oh, it's already at $1300 so it's overbought'... Implying that it'll go down, not up from here.

That's wishful thinking on their part and pure spin to their customers. In short, I think none of the players on the banks' side have any clue how to stop it so they're grasping at strings, trying to save face for now and minimalize bitcoin as much as possible.

Banks may yet adopt Bitcoin.

Banks may yet adopt Bitcoin. We'll see how this shakes out over time. Because of the digital cash nature of BTC, they could still offer to store Bitcoins or act as an easy way to convert cash to BTC and back. Mt. Gox is the biggest player in Bicoin, after BTC China, but I understand it's nearly impossible to get your money out due to anti-money laundering laws.