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JP Morgan Chase analysts said the recent Bitcoin rally echoed the rise of the main cryptographic asset at the end of 2017, before a huge correction hit the market.
A new strategic report by the financial giant analyzes the value of Bitcoin by taking into account the cost of energy and hardware needed to power the network, reports Bloomberg.
"Over the past few days, the real price has changed significantly from the marginal cost. This divergence between actual values and intrinsic values led to some echoes of the rise at the end of 2017, and this divergence was solved at the time by a reduction in real prices …
Defining an intrinsic or just value for any cryptocurrency is clearly a challenge. Indeed, some researchers say that it has no fundamental value and others believe that fair values far exceed current prices. "
The company's record of cryptographic analysis is systematically bearish. In December 2018, the company released a report by the same group of analysts that said "the participation of financial institutions in Bitcoin trade seems to be fading away".
In the months following this report, the enthusiasm of trading professionals seems to have rebounded. Fidelity Digital Assets has published its own study showing that nearly half of institutional investors "see a place for digital assets in their portfolio."
We asked: what do the institutions really think #digital assets? https://t.co/3Lq5h5ITbT
– Fidelity Digital Assets (@DigitalAssets) May 2, 2019
Jamie Dimon, CEO of JP Morgan, a long-time critic of Bitcoins, claims to believe in blockchain technology at large, but not in the world's number one cryptocurrency. Dimon called Bitcoin a "fraud" in September 2017 and threatened to fire any "stupid" employee caught selling cryptocurrency.
In February of last year, JP Morgan and Bank of America banned their customers from using their credit cards to buy crypto-currencies.
Meanwhile, JP Morgan creates its own cryptographic asset called JPM Coin. The stable amount would be set at 1: 1 to the US dollar. Use cases include activation of cross-border transactions.
Speaking at an annual day of investors, Dimon also hinted that JPM Coin might someday end up in the retail business, competing with Bitcoin and other encrypted currencies used for trading. purchases.
"JP Morgan Coin could be internal, commercial or a consumer day."
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Disclaimer: The opinions expressed in Daily Hodl do not constitute investment advice. Investors should exercise due diligence before making high risk investments in Bitcoin, Cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling crypto-currencies or digital assets, and the Daily Hodl is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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