JP Morgan feels Bitcoin is trading roughly 2X its intrinsic value

18 May, 2019
by David Borman
JP Morgan feels Bitcoin is trading roughly 2X its intrinsic value

Recently Holger Zschaepitz, a German economist, took to twitter with a chart analysis he obtained from JP Morgan. The chart shows the price of Bitcoin against its "intrinsic value," which is calculated based upon cost of production. This analysis shows that as of now, Bitcoin is trading about twice as high as where this valuation would put it.

Zschaepitz notes that a significant price divergence to the upside happened at the end of 2017, as the bull run began to take hold of the market. On twitter, some debated if this was in fact a meaningful metric with which to even value Bitcoin:

Some also took the opportunity to bash Bitcoin, as is always expected:

Of course, others came out in defense:

Ultimately, it won't matter much to most Bitcoin users what JP Morgan thinks of their coins value, and the market will ultimately decide its price. For both, stick right here with Chepicap for any new developments!

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