Investment Firm Wedbush Predicts $400 Bitcoin by 2016; Advises to Buy GBTC

LA-based financial services and investment firm Wedbush Securities released a report in which it predicts that bitcoin will trade for US$400 by next year. The firm furthermore suspects that Bitcoin Investment Trust‘s NASDAQ traded bitcoin derivative GBTC will keep pace, and accordingly advises investors to buy the over-the-counter security.

The Wedbush report, authored by Gil Luria and Aaron Turner, calculates the expected future value of bitcoin by comparing it to existing players in the payments industry. The report predicts that the Bitcoin payments network could end up powering 10% of online payments, and up to 20% of global remittances by 2025. The synopsis of the report reads:

“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 US$40 price target.”

As bitcoin fits in a category better compared to assets than that of existing payments companies, Wedbush argues for a unique model to estimate its future value, adding up to US$400 by 2016.

Read more ... source: Cointelegraph