A publicly regulated German bank BayernLB has issued a report titled «Megatrend Digitalisation. Is Bitcoin outshining gold?» in which it predicted a new all-time high for bitcoin (EXANTE: BTC.EXANTE) in the next year.
The bank states that the approach based on the analysis of commodity markets serves to quantify the “hardness” of an asset. In relation to bitcoin, an unusually strong correlation arises between the market value of this cryptocurrency and the ratio between existing reserves and emission.
However, BayernLB emphasizes that even the best statistical model can fail miserably when trying to predict the future.
If the bank’s model works correctly, then in 2020 due to the halving in bitcoin emissions, the bitcoin price will reach up to $ 90,000.
Earlier iHodl reported that the Central bank of Venezuela wants to determine if it could use cryptocurrencies as a reserve currency.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.