- Posted January 17, 2014 by
beverly hills, ca, California
- Investor Keith Gilabert says, “Bitcoin is Capitalism and it will Survive the Crash of Mt. Gox”
- Bitcoin Touches $220 On Formerly Dominant Exchange MtGox — After 60% Plunge
- Fina V Capital Will Accept Bitcoins (BTC) For Advisory Services, according to its CEO Keith Gilabert
- Fina V Capital's Keith Gilabert Sets $10,000 Target Price on Bitcoin (BTC)
Fina V Capital's Keith Gilabert Sets $10,000 Target Price on Bitcoin (BTC)
Fina VC currently has an agressive 12 month target price of $5,000.00 for Bitcoin (BTC). "We only recommend professional investors trade Bitcoins, the purpose of Bitcoins is for commerce within a single currency not trade the currency. If you do trade you must understand that there could be a total loss."
Gilabert states, “The value in Bitcoin comes from the ease of use for trade. There are currently 178 currencies used around the world. The exchange rates fluctuate quite a bit and the banks processing fees can reach as high as 12% on a single transaction. With Bitcoin you eliminate the banks processing fees and save up to 10% on the transaction. If you take a nominal figure such as a $1 billion in transactions that’s over $100 million the consumer has saved in fees and now has additional buying power.”
Bitcoins are gaining traction from the demand of businesses and consumers, last week Overstock.com started accepting Bitcoins as payment. “This is an important step towards creating a reserve currency that is free of the excessive fees charged by banks and brokers. I expect to see other major retailers announce acceptance of Bitcoins this year,” according to Gilabert.
Winklevoss Capital, headed by Cameron and Tyler Winklevoss who came up with the idea that that gave Mark Zuckerberg the inspiration of Facebook, stated that the price of Bitcoin could reach $10,000 and maybe worth $40,000 per coin someday.
Another bullish prediction came from Chris Dixon Partner of Andreessen Horowitz who believes a single Bitcoin might even be worth $100,000.
Dixon goes on to compare Bitcoins to internet domain names, “It would have been absurd to say in 1993 that domain names were worth $10m each.”
Former Facebook executive Chamath Palihapitiya stated, if Bitcoin could establish itself as a “useful reserve currency” it could worth more than $400,000.
According to Gilabert, “The reason People’s Bank of China announced that commercial banks in the country could no longer deal in the digital currency Bitcoin was because it undermines their Central Bank. Bitcoin allows a way to securely record transactions without the need for a Central Authority to confirm or verify those transactions. ”
Bitcoin protocol creates a blockchain, which tracks each and every transaction on the network. Bitcoin’s lead developer Gavin Andresen stated, “The idea is to give people a way to do what they clearly want to do, but do it in a responsible way that strikes a balance between you and whatever you want into the blockchain.”
This allows a contract to only be triggered by data feeds within the blockchain encrypted on the Bitcoin.
Investment from venture capitalist in Bitcoin has begun to gain momentum. Coinbase raised $25 million from Netscape creator Marc Andreessen and BitPay has raised $2 million from venture firms. “These are major players in the Bitcoin arena and this is further confirmation that there is value in Bitcoins”, according to Gilabert.
Bank of America today started coverage on Bitcoin with a target of $1,300.00.