JP Morgan

JP Morgan Outlines Crypto Opportunities

A new report from JP Morgan has outlined in crypto markets for private banking clients. The report showcases opportunities for private banking clients who hold at least $10 million in their accounts while also proposing the true value of Bitcoin using three different metrics.

The first of three metrics entails a version of Metcalfes law, which notes that Bitcoin’s value is proportional to the square of the number of its users. Thus, the application of Metcalfes law reveals that Bitcoin would be worth $21,667.

In the report, JP Morgan dived deeper to calculate the value of Bitcoin by comparing its max supply of 21 million to the price of gold deriving a valuation of $540,814 BTC.

According to the global investment bank, through the application of the global value of money to BTCs max supply, Bitcoin would be priced at $1.9 million.

The report also downplayed all forms of comparisons between Bitcoin and gold because the volatility characteristics and correlation profile refute the comparison to the traditional safe-haven asset.

In January, JP Morgan offered different reasons why investors should consider investing in  Bitcoin. These included the overall favorable market conditions, the diminishing returns on bonds and other traditional hedges, and the unconventional platform of Bitcoin.

Interestingly, the company’s interest in crypto extends beyond Bitcoin to other cryptocurrencies. In February, the company, and Goldman Sachs, reportedly gained exposure to 21SharesPolkadot ETP (exchange-traded product), which trades on the Swiss Stock Exchange under the ticker ADOT:SW.

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