Just when many agree the price of Bitcoin is in short supply and will be higher than it is now, not all assume so. The Bitcoin price is right where it should be, according to international banking and financial services company JPMorgan Chase.
JPM maintains that Bitcoin is suitably priced based on its ‘intrinsic value’ measure, even after the recent halving case. Created by JP Morgan analyst Nick Panigirtzoglou, the estimate essentially takes into account two factors-the the expense of Bitcoin mining and its current market price.
Estimated based on the intrinsic value, Bitcoin was undervalued before the halving. Now since the halving has resulted in a rise in production costs, Bitcoin’s intrinsic value with the price is optimum.
The intrinsic value relationship of Bitcoin is related to two variables according to JPM. The first is that the hash rate of the network has fallen by up to 20 percent because there is a much higher and much tougher contest between miners for block rewards.
Additionally, because of the halving, a significant number of Bitcoin miners have become redundant. Now since the market is much tighter, the miners that are still on the network and who hold it conveniently would offer better performance.
JPMorgan’s New Bitcoin Perception
Chief Executive Jamie Dimon said in September 2017 that he would fire any employees who had been caught trading BTC because it was both stupid and contrary to company policy.
JPMorgan’s latest study and significant switch in bitcoin perception come after the bank’s onboard crypto exchanges as clients with Coinbase and Gemini, suggesting a possible end to the anti-crypto period in the bank.
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