• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Why JPMorgan Chase Suddenly Found “Intrinsic Value” in Bitcoin

Davit Babayan by Davit Babayan
2 years ago
in Bitcoin, Cryptocurrency news, Opinion, Technical analysis
Reading Time: 2min read
Why JPMorgan Chase Suddenly Found “Intrinsic Value” in Bitcoin
Advertisement
Nexo Logo
Listen to Article

Banking giant JPMorgan Chase & Co. is not much of a bitcoin fan. The $2.63-trillion behemoth found itself on the opposite side of cryptocurrencies ever since its chief executive officer, Jamie Dimon, called bitcoin a fraud. He said in 2017 that the cryptocurrency was “not a real thing,” and will eventually die.

Two years later, bitcoin is well and alive, sitting atop a $141.8 billion valuation at press time. It is likely to grow further as a wave of mainstream financial institutions builds an investment-worthy infrastructure around it. Fidelity Investments and TD Ameritrade, for instance, are close to offering Bitcoin trading services to their institutional clients.

Nasdaq, the world’s second largest exchange, is reportedly testing bitcoin-enabled investment products. The New York Stock Exchange (NYSE) is not behind as it awaits regulatory approval for listing the world’s first bitcoin-based exchange-traded fund in association with VanEck, a Wall Street investment giant.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Mr. Dimon’s predictions about BTC are failing evidently. While he has distanced himself from commenting on the cryptocurrency, his team of analysts is strategically attempting to jump on bitcoin’s side. They recently said in a note, as seen by Bloomberg, that BTC is a commodity with intrinsic value.

Hey @jpmorgan your CEO previously wrote that "Bitcoin is a fraud that will eventually blow up" and now less than two years later you acknowledge it is a commodity with an intrinsic value of slightly under 5K/coin. What's changed? $BTC pic.twitter.com/Z8K0ybDk2B

— the riots must continue until 2021 stop drumpf! (@DonnyCrypto) May 20, 2019

Overvalued but Valued

The JPMorgan strategists wrote that the bitcoin price had gotten ahead of its actual value in its recent rally. They came to call the “fraud” an overvalued asset by comparing it with commodities like gold.

“Over the past few days, the actual price has moved sharply over marginal cost,” the analysts told Bloomberg. “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.”

In 2026, JPM will be telling us that $BTC is a total scam at 365k and is worth 250k max. https://t.co/2lFR59SUID

— Su Zhu (@zhusu) May 20, 2019

The JPMorgan analysts concluded bitcoin’s actual rate after studying its production costs, based on factors such as computational power, electricity payments, and hardware energy output. They said:

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

Nonetheless, the fact that JPMorgan letting its strategists treat bitcoin as a commodity validated the bank’s softening stance on the cryptocurrency. Morgan Creek Capital co-founder Anthony Pompliano looked at the banking behemoth’s move as a sign of bitcoin’s global adoption.

“Never listen to what a bank says,” he said. “Watch what they do.”

Skepticism, Meanwhile

As JPMorgan takes baby steps towards recognizing bitcoin as a commodity, others believe that the cryptocurrency does not fit the criteria. According to Professor Emilios Avgouleas, a financial scholar associated with the University of Edinburgh, a commodity should be tangible, and bitcoin doesn’t have any physical representation.

This chart is a bunch of biased non-sense. Gold's grades should all be much higher. It seems that anyone who claims to have knowledge about Bitcoin has none about gold!

— Peter Schiff (@PeterSchiff) May 20, 2019

eToro’s senior market analyst, Mati Greenspan, believes otherwise. He said bitcoin and commodities like gold shared similar characteristics but have distinctive features.

“They have similar properties, but each has distinct benefits,” Greenspan said. “For example, bitcoin can be digitally transmitted across borders, while gold is used in jewelry and electronics.”

The usability alone provides intrinsic value to bitcoin. JPMorgan is right.

Tags: bitcoinjpmorgan
TweetShare179
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Related Posts

Chainlink (LINK)

Charted: Chainlink (LINK) Holding Uptrend Support, Why It Could Rally Again

4 hours ago
Ethereum

TA: Ethereum Corrects Lower, Why Dips In ETH Remain Attractive

6 hours ago
Bitcoin

TA: Bitcoin Signaling Further Correction, Why BTC Could Revisit $33K

7 hours ago
altcoins bitcoin crypto alt season altcoin xrp ethereum ripple litecoin

Centralized Wealth: The Downside To Institutional Bitcoin Buying

10 hours ago
Bitcoin

Latest CME Report Reveals Growing Appetite for Bitcoin Amongst Institutions

15 hours ago
ethereum open interest all time high record

Ethereum Open Interest Reaches All-Time High Alongside Record Breaking Rally

15 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

The Foundation for Economic Education Announces Two Major Gifts from Bitcoin.com Founder Roger Ver

January 19, 2021

AC Milan to Join Sports Crypto Movement With Launch of $ACM Fan Token

January 19, 2021

Institutional-grade Crypto Exchange AAX Reports Record Fiat-Crypto Purchases in 2021

January 19, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.