Merrill Lynch analysts believe Bitcoin’s recent price run-up could be justified. Mt Gox via Bitcoin has been on a rollercoaster ride for most of its four-year history, with a series of dizzying price spikes and stomach-turning plummets, often in close succession. Thursday was no exception, as the digital currency picked up an unprecedented endorsement on Wall Street and a dose of cold water from the Chinese government.

For the first time, a major US investment bank has initiated coverage of bitcoins, and its overall assessment is relatively bullish. Or, at least not as bearish as some people have been saying. “We believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers,” analysts at Bank of America’s Merrill Lynch wrote in a 14-page research note to investment clients Thursday morning. “As a medium of exchange, Bitcoin has clear potential for growth in our view.”     

Leave a Reply