Bitcoin is undervalued by at least $200!

Needham Investment Bank recently released a report claiming that Bitcoin's current price is at least 58% undervalued .

The current price of Bitcoin is $ 412 , while the report values ​​it at $ 655 . The report also suggests that investors should buy Bitcoin through the Bitcoin Trust ( GBTC ) without buying or holding it directly.

Spencer Bogart , the report's author and the new securities partner in charge of bitcoin and blockchain research at Needham Investment Bank, said this is undoubtedly a vote of confidence in the new technology as a stable means of storing value.

“We believe that Bitcoin can function as both digital gold and a means of payment,” Bogart said.

According to the data provided by the report, currently, the world's exchanges ( ETFs ) hold a total of $ 74 billion worth of gold. Of this, the Bitcoin investment market accounts for $ 6.3 billion. Bogart estimates that including legal currencies, about 75% , equivalent to $ 4.8 billion, is traded as an investment method.

The report also said that gold ETFs accounted for 6% of this, and Needham Investment Bank expects this figure to rise to 25% by 2020 .

Bogart compared the percentage of people using Bitcoin as an investment to investments in gold ETFs and concluded that Bitcoin is actually worth $ 655 .

Opinions gradually converged

In July 2015, Wedbush Securities released a report predicting that the price of Bitcoin would rise to $ 600 in the next 12 months.

Unlike Needham Investment Bank's valuation of GBTC at $ 62 per share, Wedbush Securities values ​​it at $ 60 per share.  

According to Bogart , one of the reasons for the disparity between the current bitcoin price and Needham’s valuation is the growing popularity of the technology underlying bitcoin, called blockchain.  

Platforms like Overstock 's tØ are based on top-level technology networks on top of the Bitcoin blockchain, and some new platforms are based on other blockchain technologies. Recently, Ethereum, a new technology that claims to be able to build the next generation of distributed applications, has become the subject of research for many institutions, even though it uses a permissioned version of a distributed ledger.  

Recently, the Depository Trust & Clearing Corporation ( DTCC ) said it would issue a blockchain proof of concept in conjunction with Digital Asset holdings . But as research progresses, Bogart insists that Bitcoin will play a key role. He said: "We firmly believe that Bitcoin will become the security core of all blockchain technology."