Real Price of Bitcoin Could be Zero – Morgan Stanley Analyst

Real Price of Bitcoin Could be Zero – Morgan Stanley Analyst

The analyst of a global financial services firm Morgan Stanley, which offers investment banking, securities, wealth management, and investment management services, suggested the real value of the most influential cryptocurrency in the world – bitcoin – might be just $0.

As the Business Insider reports, several days ago James Faucette and his team sent research note to Morgan Stanley clients. In this letter, it was suggested that the actual price of bitcoin would not overcome $0. However, at the moment of writing the price of bitcoin stood at around $16,440.

The analyst’s paper, which was named “Bitcoin decrypted” did not suggest the price target for this cryptocurrency. Nevertheless, in the section "Attempts to Value Bitcoin," the author reported to which extent it is difficult to assess bitcoin. According to his words, this digital coin is not a currency, neither it is like gold. Therefore, it is tough to measure its rate. So Faucette stated:

  • “Very difficult question to answer, but some points to consider.”
  • “Can Bitcoin be valued like a currency? No. There is no interest rate associated with Bitcoin.”
  • “Like digital gold? Maybe. Does not have any intrinsic use like gold has in electronics or jewelry. But investors appear to be ascribing some value to it.”
  • “Is it a payment network? Yes but it is tough to scale and does not charge a transaction fee.”
  • “Bitcoin average daily trading volume of $3bn (last 30 days) vs $5.4 trillion in the FX market.”
  • “Est. <$300mn in daily purchase volume vs. $17bn for Visa.”

The analyst defended his statements with a chart of online retailers who accept bitcoin, naming it "Virtually no acceptance, and shrinking".


Faucette suggested that if the payment technology is not recognized by anybody, then the price of bitcoin will be equal to zero. Though for sure, if one cannot use this cryptocurrency for goods, he or she can still exchange it for traditional money.

Chart Source: Morgan Stanley