Last Monday, a research note was published by Michael Hartnett. The latter is responsible for investment strategies within the Bank of America Merrill Lynch. He wished to speak on the evolution of the price of Bitcoin. According to the analyst, this digital currency would be the largest speculative bubble ever known.
An interesting analysis
The analysis is based in particular on a graph with the evolution of the price of Bitcoin since its creation. He compares this curve with those of the outbreaks speculative of the most famous in the world of finance, namely, that of the South Sea in the Eighteenth century, the market shares u.s. in 1929, or that of the famous tulip mania of 1637. Gold, in comparison, the bubble Bitcoin is without the slightest doubt, the most important of all, the prices were multiplied by sixty in three years ! For information, the price of tulips in holland had been multiplied by forty, which was already a result.
Pixabay – Mohammed Hassan / The Bitcoin would be the largest speculative bubble in history.
This analysis is not very optimistic. In effect, the Bank of America Merrill Lynch predicted a bleak future for Bitcoin, stating that like any speculative bubble, the price should drop low pretty quickly. The downward trend is expected as well, according to analysts, will continue.
However, it must not be forgotten that this study emanates from the services of the Bank of America Merrill Lynch. This institution is the second largest bank in the united states. Gold, crypto-currencies threaten its activities. In fact, in February last, the responsible of the institution of banking had explained : “The widespread adoption of new technologies, including Internet services, crypto-currencies and payment systems, may require significant expenditures to modify or adapt the products and the services that we currently offer. “
Pixabay – JayDeep / According to analysts, the price of Bitcoin will not increase more.
The Bank of America Merrill Lynch concern may êtrel’arrival of crypto-currencies, and had, moreover, forbids its customers to use their credit cards to buy Bitcoins. The last note announcing the end of Bitcoin, therefore, could be a strategy to discourage the investors and away from digital currencies, but its arguments are not without interest.
Source : Bitcoinist