If Bitcoin does not begin to be used as a means of payment, the value of the cryptocurrency might drop to zero, said an analyst at Morgan Stanley (NYSE: MS).
“If nobody accepts the technology for payment then the value would be 0,” said James Faucette.
Currently, according to Morgan Stanley, only three out of the 500 largest online stores in the world accept Bitcoins.
Experts also note the low volume of trading in cryptocurrency. The daily turnover in the global foreign exchange market is $5.4 trillion, while the daily trading volume in the cryptocurrency market is about $3 billion.
On Tuesday, Bitcoin rate rose 9% and currently stands at $15,033. The quotation grows the second day in a row after last week it lost almost half of its value.
Bitcoin, which is traded around the clock, on December 17, recorded its historical maximum at $19,810 before the launch of Bitcoin futures trading on the CME.
However, last week, as a result of a six-day decline, the rate fell by almost 50%, reaching on Friday a low of $10,718.
Despite its recent decline, in December the Bitcoin rate grew by 50%. For 2017, the price has gained more than 1400%. Therefore, many analysts explain the last week decline as a belated correction.
On Tuesday, the rest of the cryptocurrencies showed mixed results. At the time of writing, the second largest cryptocurrency in terms of market capitalization – Ethereum, has fallen in price by 0.06% to $734. Bitcoin Cash, which appeared on August 1 as a result of a hard fork in Bitcoin, fell 0.86% to $2,184.60. The rate of Ripple, developed as an alternative method for banks to calculate and remit money at more affordable prices, increased by 2.36% to $ 0.99490.