Since last month, Bitcoin has been operating at high levels, reaching close to US $ 8,000. Seeing this trend, analysts at the famed JP Morgan Bank Chase & Co. claimed that the recent large rise in the price of crypto-currency has taken its price beyond its “intrinsic value.”
In recent days, the real price has changed drastically over cost, “JPMorgan analysts commented, Bloomberg.”This divergence between real and intrinsic values brings some echoes of the peak increase at the end of 2017, and at a time when this divergence was largely resolved by a reduction in real prices.”
To reach this conclusion, the JP Morgan team treated Bitcoin as a commodity, calculating its “cost of production” based on a number of factors, including estimated computing power, electricity spending, and hardware energy efficiency.
“Defining an intrinsic or fair value for any crypto-currency is clearly challenging,” continued analysts. “In fact, the views vary from some researchers arguing that it has no fundamental value, for others who estimate fair values well above current prices.”
Bitcoin’s price fell briefly from nearly $ 8,000 to $ 7,050 on May 17, after $ 250 million of long positions were settled at BitMex. Since then, the BTC has climbed back to $ 7,945 at the time of writing this article.
So far, JP Morgan has created the habit of debating with Bitcoin and the crypto-coins. In 2017, CEO Jamie Dimon called the currency “fraud” – a statement he softened later, suggesting he simply does not care about Bitcoin. Since then, JP Morgan has launched its own block-based digital currency, which was neither a criptomoeda nor a stablecoin.