BayernLB Bank predicts bitcoin rate growth to $ 90 thousand in 2020

5 Reasons I Bought Bitcoin

A new research report from the German bank Bayerische Landesbank compares the value of gold and bitcoin, and predicts a significant increase in the MTC exchange rate in 2020..

According to document, the effect of the upcoming halving was not taken into account in the current price of the coin, which is now at $ 8,300. The Bank of Munich explains this with an example of the history of gold..

Financiers point out that the precious metal has developed its high stock-to-flow ratio for millennia. Predicting that Bitcoin is likely to get a similar ratio in May next year after cutting miners’ rewards in half.

Manuel Andersch, Senior Currency Analyst at Bayerische Landesbank, calls this figure «rigidity of the asset». Since during the period when gold was used as money, this ratio provided the best transfer of value over time..

The report concludes by examining the potential for Bitcoin’s price and predicting a sharp jump. The author points out that based on the model of the ratio of reserves to flow, from May 2020 a dizzying price of $ 90 thousand has been formed.., insofar as upcoming halving hardly considered in the current course.

BayernLB Bank predicts bitcoin rate growth to $ 90 thousand in 2020

While this rate remains a forecast based on extrapolation, most investors hesitate build your portfolio on base of cryptocurrencies, and this summer still preferred gold over bitcoin.

text: Ivan Malichenko, photo: welt, graphic: BayernLB Research

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