Real price of bitcoin could be $0.00, warns Morgan Stanley www.rt.com
Bitcoin could be worth literally nothing, if the cryptocurrency is not recognized as a rival of the US dollar and other fiat currencies, analysts of the banking giant Morgan Stanley have warned.
"If nobody accepts the technology for payment, then the value would be 0," analyst James Faucette and his team wrote in a note to clients.
Faucette is referring to a list of online retailers who accept bitcoin. The table is titled "Virtually no acceptance and shrinking" and shows the data.
Bitcoin is not like a currency because there is no interest rate associated with bitcoin, the analyst wrote.
It's not like gold either, as it doesn’t have any intrinsic use like gold.
According to Faucette, bitcoin is tiny compared to traditional financial instruments.
“Bitcoin average daily trading volume of $3 billion (last 30 days) vs. $5.4 trillion in the FX market. Estimated $300 million in daily purchase volume vs. $17 billion for Visa,” he wrote.
Coinmarketcap data says Faucette’s numbers are not correct, as an average daily volume of bitcoin is $11.5 billion. The whole cryptocurrency market’s daily volume is almost $27 billion.
One of the biggest bitcoin bulls, John McAfee of McAfee antivirus, says there is no reason for panic despite the correction in the cryptocurrency market.
Bitcoin has fallen more than 25 percent from its recent all-time highs of $20,000 spurred by futures listings on major derivatives exchanges.
Bitcoin enthusiast, billionaire Michael Novogratz who has also been very bullish on cryptocurrencies, has revised his forecast and said bitcoin could drop to $8,000 by year-end. Previously, he predicted bitcoin would be worth $40,000 by 2019.
Published Date:2017-12-26