Author apparently didn't read the article from Merril Lynch https://www.documentcloud.org/documents/885843-banks-research-report-on-bitcoin.html https://www.do

Author apparently didn't read the article from Merril Lynch https://www.documentcloud.org/documents/885843-banks-research-report-on-bitcoin.html https://www.documentcloud.org/documents/885843-banks-researc... What it actually says is that if BitCoin is to be viable it has to be used as Currency exchanged against the price of the local currency at the time of transaction. This makes sense. You wouldn't want to buy gas based on the high or the low of the day. So you can't say that Gas costs 1/300th of a Coin, and leave that as the price all day because right now that could be Cheap at $900 a coin and Expensive at $1300 a coin. It also says that there has to be enough people using it for it to not have huge price swings based on Volatility. This also makes sense. We don't buy things with gold often because knowing the value at a given moment is hard. And since we don't trade in raw gold we trade in coins, typically those coins each have values, a Krugerand and a Panda don't have quite the same value per ounce and the difference fluctuates per day. So unless we can get to a point that BTC is only changing fractional percentages per day, people are going to always be changing coins to local currency. All of this summarized in one sentence: BoA ML thinks that BitCoin will become a Merchant Services System that works on the instantaneous exchange rate with the local currency, and based on the market share they believe it could have and the total number of coins in circulation the cap will be $1300. (yeah it is a long compound sentence)