Bitcoin

JP Morgan Said Bitcoin Is a Scam, Now Reports About Its “Intrinsic Value”

JP Morgan Chase, once known for its extremely critical position on Bitcoin (BTC) and cryptocurrencies, with its CEO Jamie Dimon even going so far as to call Bitcoin a “scam” and sharing an opinion with many other detractors that it had no value. That didn’t stop JP Morgan from releasing its own cryptocurrency, JPM Coin.

Now, JP Morgan says that Bitcoin has soared past what they they have calculated to be its “intrinsic value”, Bloomberg reports. Strategist Nikolaos Panigirtzoglou and his colleagues in a note said,

Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.

The note goes on to say that price estimation could be anything,

Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.

JP Morgan Chase in early January said that Bitcoin could drop to $1,250. A top JP Morgan executive recently left the firm to join blockchain startup, Tradewind.

Abhimanyu Krishnan

Abhimanyu is an engineer on paper but a writer by living. To him, the most celebratory aspect of blockchain technology is its democratic nature. While he’s hodling, he can be found reading a good book or making the local dogs howl with the sound of his guitar playing.

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Abhimanyu Krishnan

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