As cryptocurrencies have become a source of debate throughout the investment landscape, a frequently debated topic is the true value of bitcoin, the largest digital currency. With the benefit of a recent rally, bitcoin currently trades over $8,200, though that is well below the December peak of $20,000.
Some market observers believe bitcoin can return to $20,000 and go even higher. Others have some doubts and/or extremely bearish views on the digital currency.
“It took two economists one three-course meal and two bottles of wine to calculate the fair value of one Bitcoin: $200,” reports Bloomberg. “It took an extra day for them to realize they were one decimal place out: $20, they decided, was the right price for a virtual currency that was worth $1,200 a year ago, flirted with $20,000 in December, and is still around $8,000.”
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In other words, the two economists, Savvas Savouri and Richard Jackman, believe bitcoin is currently overvalued by more than 40,000%.
Not Bitcoin’s First Brutal Price Forecast
This is not the first time bitcoin has endured a brutal price forecast.
“Investment research firm Capital Economics is chiming in on the bitcoin value with a clear likely controversial view. The London-based research provider believes bitcoin is worthless. Capital Economics also believes bitcoin’s recently intimate correlations to the S&P 500, the benchmark gauge of U.S. stocks, is set to expire,” reports Cryptobase.io.