This news will sound like sweet music to the ears of Bitcoin investors and traders but might sound ridiculous to bankers and traditional financial institutions. But a German Bank just predicted the price of Bitcoin to increase significantly in the year 2020. The state backed German financial institution BayernLB just published a book Bitcoin Vs Gold where they predicted the price of cryptocurrencies to rise significantly in the next year.
The report by the bank suggest the expected Bitcoin halving effect isn’t factored in the current price of Bitcoin and when it finally becomes factored the price of Bitcoin will hit $90000. The report explained that gold became a major asset and earned it’s high stock-to-flow ratio in the hardest of ways as it has stood the test of time. Bitcoin however has an edge over gold and will earn a high stock-to-flow ratio in the coming year so it can hit the $90000 mark.
The stock-to-flow ratio according to the author of the research Manuel Andersh is used to measure the hardness of an asset. It is calculated by the amount of assets held in reserved Vs the amount of assets produced annually. With the total number of Bitcoin to be produced pegged at 21 million and millions already held in reserve expect the stock-to-flow ratio to be a great figure that will boost the price of the most popular cryptocurrency: Bitcoin.