The Actual Value of Bitcoin Might be Zero

The Actual Value of Bitcoin Might be Zero

The Actual Value of Bitcoin Might be Zero


  • The lack of people and businesses willing to accept it as a means of payment indicates that its actual value might be nothing aka Zero, according to an analyst from Morgan Stanley

Bitcoin chart 24.12 8.20am

Current Bitcoin is trading at:

A Morgan Stanley (NYSE:MS) analyst sent a research note to clients last week suggesting that the real value of bitcoin might be Zero.

Yep, that is Zero dollars.

Currently Bitcoin is trading at: 14,001.5654, -577.439, or -3.96%, as of 6:50a GMT, the market is open.

“Bitcoin decrypted” did not give a price target for Bitcoin.

But in a section titled “Attempts to Value Bitcoin,” the analyst described why it is so hard to ascribe value to the cryptocurrency.

It is not like a currency, it’s not like Gold, and it has had difficulty scaling.

He concluded the following:

  1. Very difficult question to answer, but some points to consider
  2. Can Bitcoin be valued like a currency? No. There is no interest rate associated with Bitcoin.
  3. Like digital Gold? Maybe. Does not have any intrinsic use like Gold has in electronics or jewelry. But investors appear to be ascribing some value to it.
  4. Is it a payment network? Yes but it is tough to scale and does not charge a transaction fee.
  5. Bitcoin average daily trading volume of $3-B (last 30 days) vs $5.4-Tin the Fx market.
  6. Est. $300-M in daily purchase volume Vs. $17-B for Visa.

The Morgan analyst backed his argument with this chart of online retailers who accept Bitcoin, titled “Virtually no acceptance, and shrinking”:

retailers who accept bitcoin 2This is possibly the saddest Bitcoin chart ever.”– Morgan Stanley

“If nobody accepts the technology for payment then the value would be Zero,” the analyst suggested.

Of course, even if Bitcoin cannot be used to buy goods it is still largely exchangeable for fiat currency.

Have a Happy Christmas.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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