Bitcoin Flirts Again with All-Time Highs
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After falling below the $1000 level yesterday, Bitcoin is back to its winning ways Tuesday. The virtual currency last traded at $1170, up 7% over the past 12-hours. It is up 429% over the last 30-days. The all-time high of $1242 set a few days ago is now back in play.
Adding to the enthusiasm was yesterday's report from investment bank Wedbush, which laid out a bullish case for bitcoin and said it could be worth 10-100x its current price.
Wedbush sees three things that could keep driving the newly-minted currency higher: 1. it offers a disruptive payment network technology, 2. it is an alternative uncorrelated asset class, 3. it is a safe haven currency.
They believe the current Bitcoin price reflect a peak penetration of 1% of total potential demand in 10 years. If Bitcoin penetration reaches 10% in 10 years it could be worth $10,407, they said. If penetration is 20% in 10 years it could be worth $20,814. The most bullish case suggests bitcoin could be worth $208,141 if it penetrates 20% of the market over the next 1-year - something that is seen as unlikely but not impossible. Another scenario suggests Bitcoin could be worth $20,814 if it penetrates 10% of the market in 5 years.
Wedbush estimates 13 million Bitcoin in circulation in 2014, versus the currently estimated circulation of 12 million. Total Bitcoin production is limited to 21 million.
While Wedbush laid out a compelling case for Bitcoin, others see it as a fad and a bubble waiting to burst.
Adding to the enthusiasm was yesterday's report from investment bank Wedbush, which laid out a bullish case for bitcoin and said it could be worth 10-100x its current price.
Wedbush sees three things that could keep driving the newly-minted currency higher: 1. it offers a disruptive payment network technology, 2. it is an alternative uncorrelated asset class, 3. it is a safe haven currency.
They believe the current Bitcoin price reflect a peak penetration of 1% of total potential demand in 10 years. If Bitcoin penetration reaches 10% in 10 years it could be worth $10,407, they said. If penetration is 20% in 10 years it could be worth $20,814. The most bullish case suggests bitcoin could be worth $208,141 if it penetrates 20% of the market over the next 1-year - something that is seen as unlikely but not impossible. Another scenario suggests Bitcoin could be worth $20,814 if it penetrates 10% of the market in 5 years.
Wedbush estimates 13 million Bitcoin in circulation in 2014, versus the currently estimated circulation of 12 million. Total Bitcoin production is limited to 21 million.
While Wedbush laid out a compelling case for Bitcoin, others see it as a fad and a bubble waiting to burst.
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