It looks like there is some good news in store for Bitcoin. According to the recent report published by WedBush Securities, the bitcoin price is expected to hit $400 mark within a period of 12 months. The report is based on analysis conducted by Gil Luria and Aaron Turner.
The authors of WedBush Securities’ Bitcoin price report have based their analysis on the forecasted value of Bitcoin Investment Trust over a period of one year. Bitcoin Investment Trust has become a standard for analysis as it is the first publicly traded fund based on bitcoin and the value of its shares is expected to increase over 33 percent to reach $40 from the existing $30.60 per share in one year’s time.
As bitcoin continues to penetrate deeper into the conventional economy, it is expected to capture a decent online payments market share of 10 percent by 2025. Global remittances using bitcoin is also expected to reach 20% of the total remittance market during the same duration.
The increasing usage of bitcoin for online payments and global remittances can be attributed to transaction speed and reduced transaction costs compared to fiat currencies. Micropayment and microlending platforms are also increasingly adopting bitcoin as one of the payment options for the same reasons. It is beneficial for micropayments and microlending institutions as they will be able to transfer almost all the funds to anyone, anywhere across the world without paying a significant chunk of funds on transaction fees.
The authors of Wedbush Securities’ report believe that the number of bitcoins being hoarded will also reduce significantly at a rate of 2 percent per year to stop at 4 percent as against today’s 24 percent by 2025. In terms of market capture, Wedbush expects the requirement of bitcoins to support $595 billion in online transactions, $744 billion in remittance market and over $924 billion in microtransactions by 2025 will drive the price upwards to $400 per Bitcoin as against the current trading rate of over $280 per bitcoin.
In spite of a favourable positive outlook, the risk factor still remains, which may even lead to the prices falling drastically to $0.