Morgan Stanley Analyst Says The Price Of Bitcoin Could Actually Be…$0 (…Gulp)
How was your Christmas? Gather around the tree with some eggnog and discuss Cryptocurrency, the hottest subject of all time with your cousins like I did? Well here’s a little scare if you’ve been watching the market fluctuations for crypto over the holidays. Morgan Stanley analyst James Faucette says that Bitcoin — the current value-king of the crypto game — might actually be worth *nothing* in a paper called Attempts to Value Bitcoin. That’s because the reluctance to use it to buy goods and services from others means it’s worth nada.
• 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.