JPMORGAN: THE PRICE OF BITCOIN HAS EXCEEDED THE INTERNAL VALUE OF THE CRYPTOCURRENCY
Digital money was in a similar situation in 2017 before the market collapsed, representatives of the large American Bank reminded.
During the last breakthrough of Bitcoin exchange rate in the spring of 2019, the price of the first cryptocurrency exceeded its internal value, strategists of the US bank, JPMorgan, reported. They compared the growth of the coin with the situation in 2017, when the market increased many times, and then fell in a short period of time.
“Over the past few days, the actual price of bitcoin has exceeded its marginal cost. This discrepancy bears some echoes of the sharp growth at the end of 2017, and then it was eliminated mainly by a decrease in actual price,” the experts said.
These claims are based on the analysis of bitcoin as a commodity. The cost of its production was based on the calculated computing power, energy costs and energy efficiency of the equipment. In a conversation with Bloomberg, one analyst explained that it is extremely difficult to determine the internal or fair price of digital money, and some believe that it does not exist in principle.