Quinlan & Associates put out a massive report that
should strike fear into the heart of every bitcoin
The consultancy laid out a bear case for bitcoin that
puts it at just $1,800 at the end of 2018.
A Wall Street consultancy is predicting a massive crash in the
cryptocurrency market this year.
Quinlan & Associates put out a report Thursday titled “Fool’s
Gold: Unearthing The World of Cryptocurrency” in which they
outline a case for bitcoin dropping to $1,800 by December 2018.
The 156-page report argues that bitcoin’s current price near
$14,000 is far above what it is worth as both an investment
asset, akin to gold, and a payment mechanism. Here’s the report:
“As an asset, we valued Bitcoin using a cost of production
approach and a store of value approach, resulting in values of
USD 2,161 and USD 687 respectively. To value BTC as a currency,
we estimated its utilization for both legal, retail transactions
payments, as well as payments in the black market. After
significant testing, we calculated the price of BTC 1 to be USD
At its current valuation, the consultancy concludes bitcoin is a
bubble “waiting to burst.” If bitcoin is not adopted as payment
method, the firm predicts a major bitcoin correction to $1,800
that’ll also drag the cryptocurrency market down 70% to $223
billion later this year from its current position above $700
“‘Despite fulfilling most of the characteristics of a traditional
fiat currency, cryptocurrencies are largely being utilized as
speculative investment assets, leading to considerable volatility
in their value,” said Benjamin Quinlan, chief executive and
managing partner, in a statement shared with Business Insider.
Here’s an illustration of the consultancy’s prediction:
Quinlan & Associates
The firm’s long-term outlook for bitcoin is even more dreary.
According to the report, it sees bitcoin trading at just $810 in
Still, it sees room for growth after the crash for the
cryptocurrency market as a whole.
“While we anticipate valuations to decline in the short-term in
response to the widespread unwinding of the digital currency
space, the price of utility cryptocurrencies is likely to recover
and dominate the market in the long-term,” the report said.
It expects the cryptocurrency market to rebound — driven by those
cryptos with a clear utility — and reach $407 billion by 2020.
This reporter owns a fraction of bitcoin, but does not