Which stocks are on the rise and which are on their way down
Investors and analysts have been debating for months whether to buy or sell bitcoin and other digital currencies.
Now, a new report from Barclays Investment Bank (BARC) and Investment Meaning is shedding some light on the potential impact of the two, according to Business Insider.
The report states that bitcoin is on the upswing and is on track to hit $1,000 this year.
The bank has previously predicted the currency could go up to $1.1, the equivalent of about $500.BARC said that it expects bitcoin’s price to rise from about $1 in the next few weeks to $2,500.
It’s also forecasting the price to continue rising over the next year or so.
“The technology underlying bitcoin is improving rapidly and is now expected to provide a significant revenue opportunity,” the report reads.
“We expect bitcoin’s valuation to remain above $1 million by the end of the decade, and the company will be worth well over $2 billion by 2020.”
Investors will continue to view bitcoin as a way to avoid volatility in the world of financial markets and will continue buying the cryptocurrency as a hedge against rising interest rates and uncertainty, according the report.
The report also states that the blockchain technology powering bitcoin could be used to solve some of the problems of digital currencies, such as the issue of “double spending.”
The bitcoin market is expected to grow by more than $4 trillion by 2020, according Barclays.
However, Barclays’ projections are far from a sure thing, with some analysts expecting the cryptocurrency to lose value over time.
Barc has previously estimated bitcoin will reach $4,500 in the year 2020, which would be a 25% increase from today.
The company said its estimates are conservative and based on current assumptions about the value of bitcoin.