Bitcoin’s value is now about $14,000 after sudden increases and then downsizing. According to many analysts, bitcoin prices are not what’s announced. Even Morgan Stanley believes that the real value of bitcoin is probably zero!
A recent research note from Morgan Stanley points out how hard it is to justify that valuation. Morgan Stanley, while claiming that the price of bitcoin after rising to about $20,000, is now $14,400. The price target for this digital money has not been set in their report, titled “Bitcoin’s Encryption Discovery”.
Part of this report, entitled “Effort to Value on the Bitcoin”, is explained by the difficulty of determining the value of ciphered currencies. Bitcoin and other ciphered currencies are not like money in circulation and gold, so their valuation is very difficult. Finally, as a conclusion, it’s not possible to bid for Bitcoin like other currencies, so the real Bitcoin value may be zero.
Bitcoin is not seen as an inherent value like a gold coin; however, it seems that some investors attribute it to a certain value. It’s difficult to scale on Bitcoin, though it can be accepted as a pay-as-you-go network. The average daily trading volume of Bitcoin transactions has been $3 billion over the past 30 days, while the market value is about $4.5 trillion!
In the picture, you see Bitcoin acceptance among 500 big businessmen in e-commerce. Despite the Bitcoin uptrend over the past weeks, this image may be the most unpleasant, since it shows the true value of bitcoin. According to Morgan Stanley, if nobody accepts this technology, then its value will be zero. But it should not be forgotten, even if it is not possible to use Bitcoin to buy goods, it can be used as an exchangeable back-up currency.