RATE Group | State-Backed German Bank Says Bitcoin Will Leap to $90,000 in 2020
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State-Backed German Bank Says Bitcoin Will Leap to $90,000 in 2020

02 Oct State-Backed German Bank Says Bitcoin Will Leap to $90,000 in 2020

Posted at 02:15h in Bitcoin News by

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The German bank BayernLB has published a report on Bitcoin (BTC) vs gold in which it predicts a big leap for BTC in 2020.

Bitcoin outshining gold?

On Oct. 1 the Munich-based bank BayernLB published its latest research report that seems to suggest that the forthcoming Bitcoin halving effect hasn’t yet been priced into its current price of around $8,300.

The German bank explains that gold has had to earn its high stock-to-flow ratio “the hard way  over the course of millennia.” Bitcoin, on the other hand, will most likely succeed to obtain a similar stock-to-flow ratio to that of gold in the coming year, the report predicts.

Senior FX analyst at the Bayerische Landesbank and author of the research report Manuel Andersch, identities the stock-to-flow ratio of an asset as a way to quantify the “hardness” of the asset. Andersch said:

“Historically speaking, it has invariably been the commodity with the highest stock-to-flow ratio at that juncture which has been used as money…

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