Bitcoin may drop all the way down to zero dollars. This is what Morgan Stanley analysts led by James Faucette told Business Insider. Such a gloomy forecast for the world’s first and most expensive cryptocurrency to date showed up amid another major drop in its exchange rate. The thing is that Bitcoin dropped by 40% from 19K dollars all the way down to 11,8K dollars on December 22nd.
As for the mentioned forecast made by Morgan Stanley, they say that Bitcoin is still scarcely used as a payment means and is often seen as an investment. To be more specific, only 3 out of the world’s 500 biggest retailers accept Bitcoin. So, the expert says that if no one accepts Bitcoin, its value is inevitably going to crash all the way down to zero.
there is another factor playing against Bitcoin. The thing is that its daily market turnover is still relatively low, especially if compared to the forex market. To be more specific, the global turnover of Bitcoin is just 3 billion dollars a day while the forex one is over 5 trillion dollars and still counting. The same holds true for transactions. Daily Bitcoin transaction amount to just 300 million dollars while VISA processes 17 billion dollars in international transactions on a daily basis.
Mr. Faucette underlines that Bitcoin cannot be called a currency since there is no interest rate for it. IsBitcoindigitalgold? Well, we may call it like that but unlike gold Bitcoin cannot have any practical application in electronics or jewelry for example. So, it’s not clear why international experts are constantly trying to persuade us that Bitcoin has some real value.
Today, on December 26th, Coinmarketcap reports that Bitcoin has grown up to 15340 USD/BTC, with total market cap of 257 billion dollars. This is a 10,63% gain in 24 hours.
