The cryptocurrency bitcoin has seen its value fluctuate wildly in the last three years, peaking at over $1,000 in December 2013 before falling to less than $250 a year later. Over the course of the last five months the price of a single bitcoin has stabilized in-or-around the $400 mark, but a new report from an investment back and asset management firm says this is seriously undervaluing the cryptocurrency’s real value.
The publication from Needham Company, first reported by CoinDesk, says “bitcoin has value as both a digital gold and as a payments channel”and having compared the digital currency to the amount of money being invested in gold, it concluded that bitcoin should today have a price of $655, which is a 58 percent premium on today’s price of $412.
The report goes on to advise investors to buy shares in the Bitcoin Investment Trust (GBTC), a fund for those wishing to invest in bitcoin but without actually buying and holding the asset. GBTC is a fund founded by investor Barry Silbert last year which asks for a minimum investment of $25,000. The report gives GBTC a buy rating and gives it a target price of $62. Shares in GBTC closed Tuesday at $54.40.
“We believe that the price of bitcoin