How Bitcoin has its journey from 2009 to now is unbelievable. Bitcoin inspires many other cryptocurrencies as well and Ethereum did something similar what Bitcoin has. But Bitcoin journey is invincible. At the end of 2017, it broke all its record and cross 12 Lakh INR or nearly $20 Thousand. So, isn’t it overvalued?
A team of researchers at ETH Zurich University have claimed that the value of Bitcoin is overvalued by its investors. According to their research, the value of Bitcoin is 4 times more than its actual value.
What is ETH Zurich?
ETH Zurich is University in Science and Technology in Switzerland country. This University is well known for its interest in Market and it is a reputed Market Analyst. The researchers of the current project suggest that Bitcoin’s value can be ascertained based on the network of people using it and that the current value is much less than the reported value.
What is the Claim by ETH Zurich?
The researchers of ETH Zurich claims and believe that the actual value of Bitcoin is in the $22 – $44 billion range and this is around four times less than the current value. Year by year the model had determined a fundamental value was heavily exceeded by bubbles that grew and burst.
Currently, the Market for Bitcoin is dipping. After the record hike at the end of the year 2017, it is dipping consistently and still keep on dipping. It is hard to say how the next couple of years will go for Bitcoin, where it will stop and when it will hike again.
Recently, by some huge announcements by Indian Government, the market of Bitcoin rapidly depreciates and the price comes down to 25% less. Check here Full Information.
For future, the Research of ETH showing that the Bitcoin is going to crash sooner or later. People are now getting frustrated with Bitcoin. There are many factors that are determining a crash of Bitcoin in the upcoming days. According to the research, in the upcoming months, the price of Bitcoin will come down to 1 Lakh INR or $2000. Also, if the price of Bitcoin will come down it will literally let others cryptocurrency as well to come down. The researchers further claim that the Bitcoin market looks very similar to what it looked like before the Mt Gox crash.
As far as, we are thinking about the future of Bitcoin, yes it may hike one or two more times. But the trend of bitcoin will come to an end either sooner or later. In our opinion, don’t invest for long-term in Bitcoin. Yes, you may use it for day to day trading but not for long-term investment. If you are willing to invest a small amount for the higher return in long term, you may turn to ICO or can invest in rising cryptocurrency like Ripple.