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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...

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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.