{"id":105831,"date":"2019-05-21T02:47:31","date_gmt":"2019-05-21T09:47:31","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=105831"},"modified":"2019-11-07T02:52:15","modified_gmt":"2019-11-07T02:52:15","slug":"jpmorgan-finally-admits-bitcoin-has-value-here-is-how-they-measure-it","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/jpmorgan-finally-admits-bitcoin-has-value-here-is-how-they-measure-it\/","title":{"rendered":"JPMorgan finally admits Bitcoin has value, here is how they measure it"},"content":{"rendered":"

The world's largest cryptocurrency has surged beyond its \u201cintrinsic value,\u201d mirroring a similar move in 2017 which preceded the industry's biggest slump, JPMorgan Chase<\/a> strategists wrote in a note on Friday.<\/p>\n

Chief strategists at JPMorgan say Bitcoin's overpriced<\/h2>\n

Bitcoin's latest rally<\/a> caught many by surprise, \u00a0not to say that it wasn't a welcome development in the crypto community. With the value per BTC \u00a0exceeding $8,200<\/a> at one point, many saw this as an indicator that the dreaded bear market is finally over<\/a>.<\/p>\n

\"Goodbye<\/a>
Related: Goodbye bear market? Top bitcoin analyst says bull season is 99% in<\/a><\/figcaption><\/figure>\n

The incredible price jump didn't go unnoticed by JPMorgan, the US banking giant and previously one of Bitcoin's most vocal critics. According to a note<\/a> obtained by Bloomberg<\/i>, strategists at JPMorgan believe that the world's largest cryptocurrency might have gotten ahead of itself with its recent rally.<\/p>\n

Nikolaos Panigirtzoglou<\/a>, one of the authors of the note, said that Bitcoin has surged beyond its “intrinsic value.”<\/p>\n

The note explained that the intrinsic value of Bitcoin<\/a> was decided by treating the cryptocurrency as a commodity and then calculating its “cost of production.” Inputs such as estimated computational power, electricity expense, and hardware energy efficiency were used to calculate the total “intrinsic value.”<\/p>\n

\u201cDefining an intrinsic or fair value for any cryptocurrency is clearly challenging,\u201d the strategists wrote as a caveat. \u201cIndeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.\u201d<\/p><\/blockquote>\n

JPMorgan's note seen as a major win for the crypto industry<\/h2>\n

Jamie Dimon, the CEO of JPMorgan, is infamous for his criticism of Bitcoin.<\/p>\n

Dimon gained notoriety in the crypto industry in 2017 when he called Bitcoin a fraud and \u201cworse than tulip bulbs, later threatening to fire any of the bank's employees caught trading cryptocurrencies.<\/p>\n

And while Dimon later regretted<\/a> calling Bitcoin a fraud, he maintained his position that it is essentially worthless<\/a>. However, JPMorgan's latest report contradicts the bank's overall position on cryptocurrencies, as it essentially acknowledges Bitcoin's value.<\/p>\n

Anthony Pompliano<\/a>, the co-founder and partner at Morgan Creek Digital<\/a>, noted this in a tweet, warning that one should be wary of what banks say about cryptocurrencies in general.<\/p>\n

\n

JP Morgan is now putting out reports about \u201cBitcoin\u2019s intrinsic value.\u201d<\/p>\n

Thought it was worthless and had no value according to Jamie Dimon??<\/p>\n

Never listen to what a bank says. <\/p>\n

Watch what they do.<\/p>\n

— Pomp ? (@APompliano) May 20, 2019<\/a><\/p><\/blockquote>\n