ForexMinute.com — A new study from Wedbush Reports has predicted Bitcoin price to hit the $400-mark by 2016.
Written by Gil Luria and Aarson Turner, the report erects its predictions on the digital currency’s potential growth in payment and banking sector. As per the authors’ logic, the bitcoin market could end up cornering 10% of online payments and 20% of global remittence share for itself by 2016. Wedbush believes that the user demand for Bitcoin in the aforementioned sectors will increase drastically, something that will bring it price close to $400.
The report further predicts the share value of Bitcoin Investment Trust, world’s first Bitcoin-based public traded fund, to hit new highs in over the next 12 months. Excerpt:
“By aggregating the utilization of the various applications, we arrive at our $400 BTC price target, which translates to $40 per share of GBTC. This implies [roughly] $6bn market capitalization, which we would also describe an option on bitcoin supplanting some payment volumes from Visa, MasterCard, PayPal and Western Union, who combine for [less than] $300bn in market cap.”
Wedbush meanwhile also recognized risks that could one day make the Bitcoin tokens in your wallet worthless. The report said that due to Bitcoin’s highly fluctuating price actions, even a 0.01% change brings in a $100 profit/loss to the market, which is one of its major drawbacks. It also predicted that, in case Bitcoin fails, its technology will be overtaken by another similar technology.