On October 1, Bayerische Landesbank published a report entitled: “Megatrend Digitalisation – Is Bitcoin outshining Gold?“ The report is based on the stock-to-flow approach. Accordingly, the currently existing volume or quantity of a good is considered and put in relation to the volume that is added on an annual basis (“flow”). According to the report, this approach is a good assessment basis for a better understanding of Bitcoin. As the quantity of Bitcoin is strictly limited and flow is halved around every two years with each halving, it becomes clear that Bitcoin is conceived as an ultrahard form of currency. According to the Bayern LB report, Bitcoin is already more or less hard as gold. With a look to the next halving of the block reward from 12.5 to 6.25 Bitcoin in May 2020, on the basis of its stock-to-flow-model, the report forecasts a Bitcoin price of 90,000 Dollars. Bayern LB is the “house bank“ of the Land of Bavaria, and the lead institute of the Bavarian savings banks.
Bayern LB: Bitcoin seen at 90,000 Dollars by the year 2020
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