The price of bitcoin should be rise to 400 USD in the next year, according with a new report created by Wedbush Securities.
This report says:
We believe bitcoin and its associated blockchain technology have the potential to disrupt the existing financial infrastructure over the next few years. We believe the value of the bitcoin currency (BTC) will benefit from this trend and therefore are initiating coverage of GBTC with an OUTPERFORM rating and $40 price target.
About bitcoin as new form of payment:
We see BTC as equity in a payment network, much like Visa, MasterCard and PayPal, which we also cover. However, since BTC does not generate cash flow like equity, we use a commodity-like valuation approach that values each BTC as a â€œpacketâ€ in limited supply that fuels the bitcoin network. The more the bitcoin network is utilized for current and future applications, the more demand for the packet. 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 ~$6 billion market capitalization, which we would also describe an option on bitcoin supplanting some payment volumes from V, MA, PYPL and WU, who combine for >$300 billion in market cap.
Risks to our price target include the fact that BTC could very well go to zero due to lack of cash flow, increased government regulations, lack of consumer adoption, rise of superior alternative crypto currency, failure of the protocol, and cyber hacks.
See complete report here