By USDR
Financial authority Peter Leeds, with the help of his full analysis team, has announced their official outlook for Bitcoin prices. Upon in-depth review, the Leeds team has identified the main price drivers for Bitcoin, and developed their opinion for upcoming valuation and trading activity for the digital currency.
Among their findings, they expect the main criteria which will drive valuations to be critical mass, competition levels, and the attrition rate.
Leeds explained that a product or service needs to be used by over 30 percent of merchants and consumers to achieve ‘critical mass,’ meaning that it is widely accepted and thus may continue to grow in usage.
Currently, Leeds believes that less than one quarter of one percent of global businesses accept the digital payment method, and therefore is not even close to being commonly used.
Leeds also has a negative outlook for other cryptocurrencies. “The competition for Bitcoin will not come from Peercoin, and Litecoin, and Namecoin, and the host of other digital payment methods,” explains Leeds.
“The competition will be conventional payment methods. People won’t be choosing between Digicoin and Litecoin, they will choose between Bitcoin versus Paypal, or online banking, or credit cards, or wire transfers.”
Leeds also goes on to predict that there is only room for two or three digital currencies, and the rest will not be around in a few years.
Leeds indicated that the most important factor in Bitcoin values will be the attrition rate, whereby merchants who currently accept the payment method change course, and stop taking the cryptocurrency.
“Since Bitcoin was relatively new to most merchants, there was very little attrition in the early days,” explains Leeds. “We are now about to see the beginning of the attrition rate, and if the new merchant growth rate is not at least twice as high, Bitcoin prices will fade.”
Leeds mentioned that the number of merchants accepting Bitcoin is still growing, but that rate of growth will slow significantly, in his opinion. The Peter Leeds team expects Bitcoin prices to be bound within a very loose range for the coming months, and quite possibly the coming years, between $400 and $650 U.S. dollars.
Leeds is the author of several books, such as Penny Stocks for Dummies, and is senior editor of the Peter Leeds Speculative Stocks newsletter which boasts thousands of subscribers across six continents.
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