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Cyber Bitcoin reported that the seventh largest bank in Germany, which holds a 75% stake in the Bavarian Free State, issued a new report. Incorporate the scarcity of Bitcoin into the calculation of economic models, and surprisingly issued a hobby, Bitcoin will usher in the historic biggest bull market next year.

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On the 1st of this month, Bayern LB, a commercial bank directly regulated by the German government, published a report comparing bitcoin (BTC) and gold, "Digital Trends: Whether Bitcoin is Beyond Gold", and boldly predicting bits. The currency will reach a new high of $90,000 in 2020.

According to the report, gold has finally achieved the current high stock-to-flow ratio (Stock-to-Flow*) through thousands of years of hard work. However, the predicted results show that Bitcoin is likely to receive gold in the next year. Parallel inventory flow ratio; in other words, because the inventory flow ratio calculation method will include the annual production quantity into the formula, the scarcity of bitcoin may form a bullish indicator in the long run.

The lead author of this research report, Manuel, a senior foreign exchange analyst at the Bavarian Bank. Manuel Andersch believes that the inventory flow ratio is a way to quantify the “hardness” of an asset: “Overall history, the product with the highest inventory flow ratio has been used as currency because it can Achieve the best value transfer."

Bitcoin has higher scarcity than gold

Thanks to the Fed, the European Central Bank (ECB) to drive the global action to cut interest rates, restart the Quantitative Easing (QE) policy, so that investors have put money into the market, and the price of gold has been lifted to nearly five years. At the highest point, safe-haven assets such as precious metals are also bullish.

On the other hand, Bitcoin has experienced the worst month since November 2018; however, the report also optimistically writes that Bitcoin has higher scarcity than gold, precious metals and other products, and is estimated according to current market capitalization. Bitcoin should be able to achieve a high inventory flow ratio similar to gold.

The value of gold benefits from a lack of industrial use

It is worth noting that the report also named that the value of gold is due to its lack of industrial use, which in turn makes gold's inventory flow higher than other precious metals, thus becoming the best value storage tool; In fact, Bitcoin has no value other than being used as currency, meaning that it will not be used for other purposes because of any unexpected events, but instead makes Bitcoin the best currency.

Therefore, the author pointed out at the end of the report that the inventory flow ratio of Bitcoin will increase sharply around May 2020. If the inventory flow at that time is included in the forecasting model, the value of Bitcoin will probably be lifted. To a record high of up to $90,000.

And that's why the third mining award, which was also expected to occur in May 2020, is halved and is not reflected in the current price of Bitcoin around $8,000.

The convincing main reason is that according to Anders' economic model, assuming that the current inventory flow ratio is set, the price of Bitcoin will fall to about $7,500, and the price of Bitcoin after the September 25 fall. Probably also flowing between $7,800 and $8,700.


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