-1 vote

BofAML Sees Bitcoin Fair Value At $1300

Bitcoin could become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money-transfer providers, BofAML notes in a report today, adding that as a medium of exchange, Bitcoin has clear potential for growth, in our view. Despite Greenspan's inability to find "value", BofAML prefers not to call the crypto currency a bubble, and assigns a maximum fair-value of $1,300, but does warn that the 100 fold increase in Bitcoin prices this year is at risk of running ahead of its fundamentals.

Read more: http://www.zerohedge.com/news/2013-12-05/bofaml-sees-bitcoin...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Read the fine print

It says the fair value could be $1300 in the future if (a) ten percent of the world's e-commerce transactions are in bitcoin, and (b) bitcoin is used for money transfers at a rate that puts it in the top three of that industry, and (c) bitcoin has a reputation as a store of value (and a stable enough price to make that possible) comparable with that of silver. When all those things happen it will have a fair market valuation about 25% higher than the current price by that analyst's estimate.