I’m Raising My Bitcoin Price Target To $400
The value of the electronic currency Bitcoin has gone bananas in the last five weeks, blasting from about $35 a coin in early March to a new high of $145 last night.
Bitcoin has now blown through my previous price target.
So it is time to raise that target again.
So I’m raising my Bitcoin price target to $400.
I don’t have a Bitcoin price target.
And the idea of raising a Bitcoin target to “$400,” I should explain, is sort of an inside joke:
15 years ago, when I was a stock analyst during the Internet boom, I put a $400 target on the stock of Amazon.com. Amazon was a highly controversial stock at the time–many people thought the company was “just a bookstore” and would “never make money”–and the stock had already reached what some people viewed as an insane level. I didn’t think that predicting that Amazon could go to $400 was particularly radical–that was one of many possible scenarios supported by the numbers. But my target “plucked the chords of the zeitgeist,” as the writer Jay McInerney once said about a book of his, and suddenly everyone had something to say about it.
(Fortunately for me, Amazon soon blasted to $400 and beyond. And after a 7-year fallow period, it has continued to do well. On a split-adjusted basis, my “$400″ target is about $67 in today’s Amazon stock).
If I were going to put a price target on Bitcoin, I would think that $400 would be a perfectly reasonable target.
Unfortunately, so would $1,000.
And, because you’re probably already getting ready to blast me for “irresponsibly fueling speculation,” so would $0.
That’s right: $0.