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

Keep Up With October Crypto Events Checking Out This Quick Roundup
Top Crypto Market News Of October You Should Catch Up WithDo you think the world is turning more crypto-crazed day by day? There’s no limit to your...
A Collection Of Fresh Crypto News For Those Who Missed Out
The Major Roundup On The Latest Crypto News In The World The last month has been full of events and brought even more pressure on local...
What To Expect From A Cryptocurrency Market In 2020
Crypto market has always been a good target for speculation, shady schemes, and "bad guys". It's also very controversial, especially for financial...
Influence of Recent Cryptocurrency Boom: Does It Still Hurt?
Crypto Exchange Agrees With Reports Showing 51% Attack On Ethereum Classic Bitcoin is a decentralized digital currency (also known as...
Cryptocurrency Exchange Security Levels
The growing interest in cryptocurrencies has led to the emergence of a wide selection of both digital money and the sites where you can exchange one...
Belarusbank Considers Setting Up Crypto Exchange
Last year March Belarus introduced a decree by which it legalized cryptos and some activities related to them. This made Belarus a frontrunner in the...
Nasdaq CEO Believes Cryptos Have Place in Future in Economy
Almost two months ago Nasdaq’s representative Joseph Christinat confirmed the rumours that in 2019 the American stock exchange might launch BTC...
Report: Leaders of South Korean Crypto Exchange Komid Face Jail After Fraud
This week the Asian crypto-market has been rich in the news. Earlier it was reported that Japan finally approved Coincheck’s official status as cyber...
Crypto-Expert Brian Kelly Says 2019 Will Bring No Approval to BTC ETF
For the past year, various ETF-projects have been failing to receive the green light from American regulators. And despite the bullish ambitions of...
Ethereum Classic 51% Attacker Reportedly Returned $100,000 to Exchange
Cyber money exchange has informed the general public about the return of previously stolen $100,000 worth Ethereum Classic units. According...