Bank of America: Bitcoin has potential to become a major means of payment in the future

Interesting report entitled «Bitcoin: a first assessment» was issued by analysts at Bank of America Merrill Lynch. According to analysts the Bitcoin has the potential to become a «major means of payment for ecommerce» as well as a «serious competitor to traditional money transfer providers» in the future.

The Bank experts consider that Bitcoin should cost $1,300 for one coin and its maximum market capitalization would be $15 billion. Recently, the Bitcoin’s rate experienced fluctuations in connection with the events in China. Bank of America experts notes in the report that the rapid jump in Bitcoin’s value since August also was correlated with interest in the currency coming from China.

The researchers note the following Bitcoin’s disadvantages: its volatility, its legal status is still undetermined and transactions take 50 minutes to process. The authors of the report also note that security at the exchanges where people buy and sell Bitcoin has been unreliable. But it is worth noting that it comes to specialized sites like MtGox. They really were hacking in the past. Traditional exchangers of electronic currencies such as WM-Center have always been reliable in terms of security.

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