CryptoCoinsInfoClub.com

Is Bitcoin Value Real

Morgan Stanley On Bitcoin: 'the Value Would Be 0' - Business Insider

Morgan Stanley On Bitcoin: 'the Value Would Be 0' - Business Insider

A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our The price of bitcoin as of 8.20 a.m. on December 24, after a very volatile week. Even after a rough week, bitcoin is trading at around $14,400. A recent research note from Morgan Stanley points out how hard it is to justify that valuation. The scarcity of people willing to accept it as a means of payment indicates that its actual value might be nothing. Morgan Stanley analyst James Faucette and his team sent a research note to clients a few days ago suggesting that the real value of bitcoin might be ... $0. That's zero dollars. (Bitcoin stood at around $14,400 at the time of writing.) The paper (titled "Bitcoin decrypted") did not give a price target for bitcoin. But in a section titled "Attempts to Value Bitcoin," Faucette described why it is so hard to ascribe value to the cryptocurrency. It's not like a currency, it's not like gold, and it has had difficulty scaling. He concluded: Very difficult question to answer, but some points to consider 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. Faucette backed his argument with this chart of online retailers who accept bitcoin, titled "Virtually no acceptance, and shrinking": This is possibly the sadde Continue reading >>

The True Value Of Bitcoin And The Blockchain

The True Value Of Bitcoin And The Blockchain

The True Value of Bitcoin and The Blockchain 180 pounds of gold (displayed above) is worth an estimated $3,500,000 (USD) based on current rates of $1220/oz. Under 5 years ago, that same amount of gold was worth over $5,000,000 15 years ago, the same amount of gold was worth under $1,000,000 At one point in the history of the human race, a 180 pound gold nugget would have been worth $0 Starting from thousands of years ago, gold was used in high-end decorations and jewelry due to its beauty, rarity, and resilience. In smaller sizes, gold provided to be a useful medium of exchange and storage for society. The utility of gold is what was valuable to people thousands of years ago. However, it is important to understand that golds utility came as a result of technological advancements. As mentioned previously, a 180 pound gold nugget would have been worth $0 because at one point in history, humans would not have possessed the necessary technological skills to make use of it. It would not have been possible to make jewelry or ornaments from it, let alone easily move it. Only after discovery of methods allowing humans to take advantage of golds malleability, did gold begin to play a more significant role in human history. Now lets take a look at Bitcoin (BTC) which has been in existence for only 7 years (compared to 1000s of years of history for gold). When Bitcoin first came out it was useless just like the huge gold nugget. At one point, 10,000 BTC would only get you two pizzas . As time passed, more people took interest and contributed towards the technological development of Bitcoin. Now 1 Bitcoin is valued near $500. Developments such as the Thunder Network essentially gives us the ability to split the huge gold nugget into smaller coins. This results in increased utility Continue reading >>

Why Do Bitcoins Have Value?

Why Do Bitcoins Have Value?

Bitcoin was launched in 2009 as the world's first decentralized, private digital currency. Because it has no physical denominations , Bitcoin only exists inside of an interlinked computer network system. This is not entirely unique, as much of the U.S. dollar supply only exists in digital account balances instead of as actual green pieces of paper. Bitcoins are generated, or " mined ," through a sequence of complex mathematical formulas run through computers. The anonymous creator of Bitcoins set a cap on total Bitcoin volume. Once that number hits 21 million, no more Bitcoins can be generated. These digital coins can then be bought or sold with other currencies and used as an investment or money to buy goods from any sellers who accept them. Economics teaches society that values are subjective; items have economic value because people desire them for one reason or another. Currencies, or mediums of exchange, serve several different and crucial functions in an economy. For one, they make trade easier; money currencies trade for nearly any good or service. For example, suppose a person has 5 units of lumber and wishes to purchase a dog. Without currency, his only option is to find a lumber-wanting dog owner. With currency, like U.S. dollars, he can sell the lumber to anyone who wants it and then use the money to purchase a dog. Currency also provides a universal measurement for accounting purposes. For instance, without currency, it is difficult to compare companies that sell different goods. Currency is used as a store of value , which makes saving, investing and banking easier. Some currencies, like gold, have value because they are useful as a commodity. Government fiat currencies, like the U.S. dollar, have value because governments grant them legal tender status an Continue reading >>

Bitcoin's Value Could Be Zero, Says Morgan Stanley Analyst | Fortune

Bitcoin's Value Could Be Zero, Says Morgan Stanley Analyst | Fortune

As the price of Bitcoin and Bitcoin futures have risen in 2017, one Morgan Stanley analyst has a radically different take on the digital currency. In a markedly different take Todays Bitcoin price is around $16,000 , but analyst James Faucette said in a research note last week, that the value of Bitcoin could actually be zero. In a research note titled Bitcoin Decrypted, the Morgan Stanley analyst outlined several reasons for why Bitcoin may have no real-world value, Business Insider first reported. One reason is that its not a real currency, Faucette said, since Bitcoin has no interest rate attached to it. Another is that since its not a physical object like gold (which can be used as a precious metal), it lacks an intrinsic value. However, Faucette concedes that Bitcoin has value as a payment network, but therein lies the rub. The analyst claimed Bitcoin has virtually no acceptance, and shrinking, adding if nobody accepts the technology for payment then the value would be 0. Bitcoin following classic bubble pattern. pic.twitter.com/fhEedS4bjq Continue reading >>

Bitcoin Price Index - Real-time Bitcoin Price Charts

Bitcoin Price Index - Real-time Bitcoin Price Charts

The vice president of the European Central Bank saidyesterday that investors are taking a risk buying bitcoin at current high prices. Do you believe celebrity endorsements help the blockchain industry? Yes big names add credibility and visibility No they back scam projects or distract from innovation Indifferent this neither helps nor hurts the space I would like to receive the following emails: CoinDesk Weekly - Insights for the week ahead CoinDesk Daily - Our snapshot of the day's news Subscribe to our free newsletter and follow us Continue reading >>

How Much Is Bitcoin Worth? Some Say Zero Dollars | Digital Trends

How Much Is Bitcoin Worth? Some Say Zero Dollars | Digital Trends

Posted on December 25, 2017 - 12:22AM 12.25.17 - 12:22AM According to Coindesk , bitcoin is currently worth about $13,000, but Business Insider reports that Morgan Stanleys JamesFaucette suggest the true value of bitcoin might be zero . Though Faucettes report, entitled Bitcoin Decrypted, did not give an actual value for bitcoin, a section called Attempts to Value Bitcoin gave some insight into his thoughts on the currency and why it can be so difficult to determine bitcoins value . The first point that he considered was whether or not bitcoin could be considered a true currency. He concluded that due to the fact that there is no interest rate attached to bitcoin, it could not be considered a true currency the way the dollar or the euro are considered currencies. He did concede that bitcoin shared some similarities with precious materials such as gold, but noted that, unlike gold, bitcoin has no real-world applications. Gold is used in jewelry and electronics, whereas bitcoin exists only as data. That being said, he admitted that the cryptocurrency held some value due to the fact that investors were willing to give it value. He discussedthe value of bitcoin as a payment network and conceded that it did hold some value in that regard. However, he also noted there were some limitations to its usefulness. The two issues Faucette cited were the fact that it is a difficult payment network to scale and does not charge a transaction fee. Bitcoin is accepted by a small number of companies , but, as Faucette points out with his chart, that number is small and getting smaller over time. If nobody accepts the technology for payment then the value would be 0, Faucette said. Of course, bitcoin currently does hold some value solely due to the fact that it can be exchanged for curren Continue reading >>

How Much Is Bitcoin Really Worth?

How Much Is Bitcoin Really Worth?

I write about building wealth and achieving financial freedom. Opinions expressed by Forbes Contributors are their own. I'm sitting at my kitchen table at 6:31 p.m. ET on Friday, December 1, 2017. The price of Bitcoin is $10,790.58. PARIS, FRANCE - DECEMBER 05: In this photo illustration a man holds a visual representation of the digital Cryptocurrency Bitcoin. (Photo by Chesnot/Getty Images) It's here that I'm reminded of something Warren Buffett's often said. Price is what you pay, value is what you get. So what value does a Bitcoin buyer get in exchange for $10,790.58 ofhis or herhard earned U.S. dollars? That's what I'm going to attempt to answer in this article. Before we can attempt to value Bitcoin, we first must agree on what it is. That turns out not to be so easy. Describing Bitcoin as a currency seems like a natural place to begin. After all, I'm told some retailers accept Bitcoin as a method of payment. On closer inspection, however, comparing Bitcoin to a currency is like comparing lightening to a lightening bug (apologies to Mr. Clemens). As the WSJ has noted , Bitcoin is the hottest currency that nobody is using. As Jeffrey Dorfman here at Forbes pointed out, there are two problems with Bitcoin as a currency. First, it's too unstable. Who wants to accept something for payment that could drop in value by 25% before you have time to pour a cup of coffee? Put another way, would you accept Bitcoin as payment for a car you were selling if you had to wait 60 days to convert it to dollars? I doubt it. Continue reading >>

The Real Value Of Bitcoin Might Be $0, Morgan Stanley Says

The Real Value Of Bitcoin Might Be $0, Morgan Stanley Says

Bitcoin has had a roller-coaster month thats seen prices spike from $7,000 up to $20,000 , and most of the way back down again . Depending on who you listen to, Bitcoin is either the greatest investment opportunity since Apple, or the biggest bubble since someone thought that tulips looked pretty. Professional analysts are having to change their perspective on Bitcoin as the amount of money involved shoots up, and right now, the biggest question about the coin is what it actuallyis. Don't Miss: Todays best deals: Surround sound system, truly wireless earbuds, LEDs that flash to music, more The easiest conclusion, of course, is that Bitcoin is a currency after all, thats how it was designed. But economists point out that it fails most of the tests of usefulness for a currency: the value fluctuates dramatically, it isnt universally accepted, and people just straight-up arent really using it to buy things. So perhaps its an investment after all, some people are seeing returns of 25,000%. But unlike most investments, it doesnt have any intrinsic value, guaranteed payout, or usefulness. All of this has led Morgan Stanley analystJames Faucette to conclude that Bitcoin might be not all its cracked up to be. In a research note seen byBusiness Insider, Faucette addresses the very difficult question of what Bitcoin actually is, suggesting what will happen to the platform, depending on what it turns out to be. If nobody accepts the technology for payment then the value would be 0, Faucette writes, although hes not specifically saying that Bitcoinisworth zero. Hes just saying that Bitcoins value is intrinsically reliant on the network effect, and if nobody wants to buy it , it becomes worthless. This isnt a stinging indictment of Bitcoin, per se; it sounds more like Faucette is re Continue reading >>

Why Is Bitcoins Price So High?

Why Is Bitcoins Price So High?

Zelda expansion, Death Stranding and other titles hyped at The GameAwards Bitcoins price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires. But is this a bubble? Are the gains real? And are the bitcoin whales in for a sad Christmas? First we must understand what drives bitcoin price and, in particular, this boom. The common understanding for current growth leads us back to institutional investors preparing for the forthcoming BTC futures exchanges. The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. CBOE Global Markets and CME Group are launching new futures contracts on December 10 and December 17, allowing investors to go long or short on bitcoin. This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls. This move also legitimizes bitcoin in Wall Streets eyes, an important point considering cryptocurrencies are still suspect. Further growth comes from the bitcoin as a store of value crowd. This group of enthusiasts bought and held bitcoin and will not sell it at any current price. More and more bitcoin fans are entering into this group and they are driving up demand increases. In a world where people expect bitcoin to be worth $1 million soon this sort of activity whether rational or irrational is quite popular. We see a common thread between these points: hype and news. All cryptocurrency movements are based on domain specific media and conversations between traders. Bitcoin traders, it can be said, are now akin to th Continue reading >>

Why Bitcoin's Value Could Eventually Approach Zero

Why Bitcoin's Value Could Eventually Approach Zero

Why Bitcoin's Value Could Eventually Approach Zero Unless energy efficiency improves dramatically, demand for cryptocurrencies will eventually be self-limiting. According to most observers, the speculative bubble-of-the-year award for 2017had there been onewould have gone to Bitcoin , the value of which soared from under $800 in January of last year to almost $20,000 by mid-December. In fact, though, Ripple (a lesser-known cryptocurrency) racked up an even more astounding achievement, with a 35,000 percent value increase for 2017. Clearly, investors who passed up cryptocurrencies last year missed the boat of all boats. Still, not everyone is a Bitcoin booster these days. Researchers at Digiconomist and elsewhere have recently attempted to curb our collective crypto-enthusiasm by calculating Bitcoin's energy footprint, showing that the Bitcoin system currently uses more electricity than the nation of Denmark. The current algorithm for creating, or "mining," a Bitcoin is based on computing a supermassive number of hash functions. That undoubtedly takes a lot of energyyet, owing to the secrecy of the process, no one knows exactly how much. Bitcoin trades, which employ blockchain technology (more about that below), also use a lot of energy: Trading a Bitcoin uses at least 77 kilowatt hours (kWh), according to one estimateenough to power a large American house for a week . At that rate, if all Visa transactions were denominated in Bitcoin, they would use as much electricity as the entire world currently does for all purposes. (Digiconomist estimates that the transaction energy cost is over three times higher, at 250 kWh/transaction.) Total energy usage for the Bitcoin system (mining plus transactions) is also a slippery figure. Digiconomist estimates 24 terawatt hours (TWh) Continue reading >>

Bitcoin Bubble: Cryptocurrency Is A Safer Than Real Currency, Claims Expert | City & Business | Finance | Express.co.uk

Bitcoin Bubble: Cryptocurrency Is A Safer Than Real Currency, Claims Expert | City & Business | Finance | Express.co.uk

Real currency is the bubble NOT Bitcoin, cryptocurrency professional warns BITCOIN is not a bubble but a reflection of the corruption of real currencies, a Bitcoin professional has claimed. Real bubble is not Bitcoin but real currency, Przemek Skwirczynski The ICO Rockets Przemek Skwirczynski has warned that the recent success of Bitcoin and other cryptocurrencies stem from the corruption of real currencies and distrust of financial institutions since the 2009 financial crisis. Mr Skwirczynski told the Express.co.uk: I would not call it a bubble, the way I see this is a reflection of the corruption of the real currencies. So if anything I think the real currencies are a bubble. JPMorgan Chase head Jamie Dimon is one of Bitcoin's harshest critics [Getty Images] However, defenders of the digital currency boom have claimed distrust in the value ofreal currencyhas grown rapidly with many people looking for a safe haven for their wealth. Mr Skwirczynski said: The idea behind Bitcoin was that a bank cannot dilute the currency that you have in your pocket. The ICO Rocket associate said that since the gold standard was abandoned by Richard Nixon in 1971 national currencies have no longerbeenbacked up by a one-for-one gold reserve leading to manipulation of their value by central banks. The value of Bitcoin has been highly volatile in December The gold standard meant that currency had to be backed up by a reserve of the precious metal but once that was ditched by President Nixon central banks were free to print as much of a currency as they wanted taking value out of the currency held by citizens in projects like quantitate easing. Mr Skwirczynski said: Gold ceased to be a reference point and since then the central banks all over the world started printing more and more currenc Continue reading >>

The Real Value Of Bitcoin: Blockchain

The Real Value Of Bitcoin: Blockchain

The video above explains the true value behind Bitcoin and other cryptocurrencies Blockchain. Get our PDF study on REITs and our other investor studies! Save it to your desktop, read it on your tablet, or email to your colleagues. The type of mania were seeing in Bitcoin is reminiscent of the 99 tech bubble. Theyre similar in that we have a majority of investors that have no clue about what theyre really investing in. The strategy in 99 was to throw your money into anything .com related. Nowadays its throw your money in anything crypto related. Talk to anyone about Bitcoin and theyll tell you its the future. But do they know why? Nope! In reality Bitcoin doesnt matter. Nor does Ripple, Bitcoin Cash, Litecoin, etc. They are all replaceable. We have no idea which cryptocurrency will survive if any. But what will survive is Blockchain the tech that powers them all. If youre a trader, the cryptocurrency markets are fantastic. The volatility and pure mania is perfect to take advantage off. And because its a new market, simple technical patterns work pretty well. (Most investors in this market are not even familiar with those techniques. They only know how to HODL.) But trading is short-term. If youre looking to invest for the long-term, then you need to invest in companies working with Blockchain technology. Why the specific cryptocurrency doesnt matter while Blockchain does How Blockchain provides a new level of security to the market Make sure to watch this video to learn about all about Blockchain and why its so valuable. And if you like this video, be sure to subscribe to Fallible for more. Like the video and share it with your friends too. And if youre on Facebook, you can find our page here . Continue reading >>

Skeptics Say Bitcoin Has No Value. Heres Why Theyre Wrong

Skeptics Say Bitcoin Has No Value. Heres Why Theyre Wrong

On Tuesday, it was trading at $11,943 , a decline of 12 percent, according to CoinDesk. As bitcoin's popularity surges and its price rises and falls, more and more people are asking the same question: How does bitcoin , something that's essentially invisible and intangible, have value? In economics, something has value if it checks the following two boxes: scarcity and utility. Scarcity just means that something has a finite supply. In the case of bitcoin, the cryptocurrency has a set cap of 21 million bitcoins. Many analysts note that this set cap makes bitcoin more desirable than other assets, even gold. That's because unlike with gold, there's no need to worry about a digital Gold Rush. A treasure trove of bitcoin won't ever be "discovered," causing the crypto's price to crash with an influx in supply. "There are potentially millions of times more gold underground than actually has been extracted," said Tom Lee, head of research at Fundstrat Global Advisors. Lee was chief equity strategist at J.P. Morgan before co-founding Fundstrat in 2014. Ben Yu, a blockchain expert living in San Francisco, says technological advances are also making gold easier to mine. "Today we mine gold at four times the rate that we did just 100 years ago," Yu said. So if bitcoin has scarcity, what about its utility? Many believe the cryptocurrency's utility lies in its potential to be a more efficient commodity than we already have. Proponents of bitcoin like it for a number of reasons. First, bitcoin is decentralized, meaning no government, bank or single person has control over it; it can't be toppled by corruption at the top. It's also trivially divisible, meaning you can buy a small item like a doughnut with it as easily as you can buy a house or even a mansion. And finally, the code it Continue reading >>

What's The Value Of Bitcoin? Who Knows

What's The Value Of Bitcoin? Who Knows

Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Unlike tangible gold and silver, digital currencies haven't had hundreds of years to prove their durability. OK, bitcoinsure looks like it's a bubble. For one thing, there's that chart: For another, if you follow the Investopedia definition that a bubble "is created by a surge in asset prices unwarranted by the fundamentals of the asset," there's the unsettling reality that this particular asset has no fundamentals. That is, there's no stream of income orcollection ofassetsattached to ownership of a bitcoin.Bitcoins haveno intrinsic value. This last statement, which I have made before , tends to irritate some bitcoin partisans. It shouldn't! The U.S. dollar hashad no intrinsic value either since President Richard Nixon unlinked it from gold in 1971. Yet dollars remain useful as a means of exchange, and people are willing to accept them as payment for more tangible things. Come to think of it, gold doesn't have much intrinsic value either.Sure, you can make nice jewelry out of it and it has some industrial applications, but that's not why it sells for $1,248 an ounce. It sells for that much because people have over the millennia come to accept it as a durable store of value. During an earlier bitcoin bull market in 2013, Bank of America Merrill Lynch currency strat Continue reading >>

Bitcoins Real Value Could Be Zero Experts Reveal As Top Morgan Stanley Analysts Say 12k Valuation May Be All Talk

Bitcoins Real Value Could Be Zero Experts Reveal As Top Morgan Stanley Analysts Say 12k Valuation May Be All Talk

Bitcoins real value could be ZERO experts reveal as top Morgan Stanley analysts say 12k valuation may be all talk James Faucette, an expert at the financial services firm, reportedly said the cryptocurrency's real value could be absolutely nothing THE true value of Bitcoin could be zero, a top financial analyst has reportedly said. The cryptocurrencys worth continued to fluctuate wildly this week, bouncing back to nearly 12,000 today after plummeting to around 8,000 last week. The price of bitcoin has been fluctuating wildly since its creation But James Faucette, an expert at financial services firm Morgan Stanley, has said its real value could be absolutely nothing, according to IBT . Faucettes report entitled Bitcoin Decrypted did not give a concrete figure for what he thought bitcoin was worth. But a section called Attempts to Value Bitcoin revealed the difficulty in valuing the cryptocurrency. Bitcoin unlike gold, which is used in jewellery and electronics has no real use, Faucette is quoted as saying. The real 'Wolf Of Wall Street' Jordan Belfort says Bitcoin is now a 'huge danger' James Faucette said Bitcoin had 'virtually no acceptance, and shrinking' It operates as a payment network but there are very few places that actually accept it. The analyst included a chart showing bitcoins acceptance among the top 500 eCommerce merchants in recent years. Next to it he reportedly wrote: Virtually no acceptance, and shrinking. He is said to have concluded: "If nobody accepts the technology for payment then the value would be 0." Teen stabbed and another has mystery liquid thrown in face in mass street fight Dad's anguish over son killed by drink-driver after he'd asked for lift The world's largest and best-known cryptocurrency fell nearly 30 per cent on Friday and bled m Continue reading >>

More in ethereum