Wedbush Predicts A Bright Future For Bitcoin

In a report authored by Gil Luria and Aaron Turner, Wedbush Securities predicted a bright future for the Bitcoin Investment Trust as well as for the cryptocurrency itself. Though the firm acknowledged the volatility risks associated with bitcoin, it said it ultimately sees the currency continuing to penetrate new markets and expand across the globe.

Publicly Traded Bitcoin

The Bitcoin Investment Trust GBTC became the first ever publicly traded bitcoin fund back in March and has since garnered a lot of attention. Wedbush analysts said they see bitcoin's growing popularity pushing GBTC from its current valuation of $30.60 to $40 by next year.

Related Link: Bitcoin: The Best Currency For Greece And Other Debt-Ridden Countries?

Bitcoin Transactions On The Rise

The firm also said that it saw bitcoin increasing in value to as much as $400 in the coming year as more and more people adopt the currency to facilitate online transactions. Wedbush said that the relatively low-cost transaction fees associated with using bitcoin will give the currency a leg up against other e-commerce payment methods like credit cards or Pay Pal.

Banking For The Unbanked

Wedbush analysts also said they saw potential for bitcoin in developing and struggling economies where the financial system isn't very secure or accessible. The firm cited the situation in Greece and the rise in bitcoin's popularity as capital controls took hold of the nation's financial institutions as a good indicator of bitcoin's potential in that arena.

Risks Still Evident

While the Wedbush report was mostly positive, the firm did acknowledge the potential for uncertainty when it comes to bitcoin trading. The company underscored that the currency does have a history of volatile price swings and that there is a possibility that bitcoin will lose the majority of its value.