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According to the JPMorgan report released Friday (25), the price of bitcoin is lower than its relative value.
While the total cost of producing a dynamic called Bitcoin, called mining, reached $ 4,000 ($ 15,000) in the fourth quarter, the digital currency is trading at less than $ 3,600. 5,000) in January.
JPMorgan uses two measures to determine the fair value of bitcoin: the marginal cost of production on an independent basis and the intrinsic value, which is based on an index of electricity consumption to produce money. .
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To achieve the average cost of production, the institution uses the mining values of several countries. The Chinese are considered the cheapest.
The cost of a Chinese minor was around $ 2,400 in the last quarter of 2018. The report notes however that this level is not static and could drop to $ 1,260. "We estimate that the price of the currency is 20% lower than its cost of production," say badysts.
By considering the other crypto-coins, the market capitalization fell from 800 billion USD in early 2018 to 125 billion USD in
In December 2017, the peak of appreciation reached, the digital currency was worth 18.6 thousands of dollars. Fintech facilitates investment in government bonds for those who are still saving. READ MORE:
For experts, the acceptance of crypto coins is still small because they have not been adopted by large retail companies. The popularity of these badets is also a challenge for the bank.
The predominance of individual investors is another highlight of this market. Indeed, the participation of financial institutions decreased with the decline in liquidity, lower prices and lower monetary reward in 2020.
"The mining activities of Bitcoin were reinforced at during the first three quarters of 2018, but the collapse in profitability has resulted in a slowdown in mining activity by the end of the year. "
comes from an badogy with gold, since Bitcoin is also finished – 21 million. Miners connected to a network called blockchain must solve a complex mathematical function.
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In this dispute, extract more that has more computing power. The more powerful the machine, the more it can solve problems and generate more rewards (bitcoins).
Created ten years ago, the currency still divides the opinion that consumption is an alternative to other means of payment negotiated by central banks or is limited to investor speculation.
Like other big banks, JPMorgan is skeptical. "Even in the most extreme scenarios, such as a recession, there are instruments that generate more cash and are less complex to invest or trade," he says.
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