By Marko Vidrih on The Capital
According to JPMorgan financial conglomerate strategist Nikolaos Panigirtzoglou, the current market price of the first cryptocurrency has finally equaled its intrinsic value.
According to Panigirtzoglu, the gap between these indicators was quickly closed after halving the award to Bitcoin miners, which took place on May 11. In January of this year, the analyst said that bitcoin was overvalued, but in a new report, Panigirtszoglu writes that after halting BTC costs exactly as much as it should.
JPMorgan calculates the intrinsic value of bitcoin as a regular commodity. Analysts calculate the production cost of each coin, given the power of the equipment of the miners and the cost of electricity.
“Given the halving of the bitcoin rewards that took place on May 11th, the intrinsic value estimate effectively doubled,” he said, adding that a 20% drop in bitcoin’s hash rate after the halving and price decline also contributed to closing the gap.
Note that after halving the award, bitcoin miners began to turn off obsolete devices for mining BTC, as a result of which the total energy consumption of miners decreased by 24%.
Author: Marko Vidrih
Featured image credit: Unsplash
JPMorgan: Bitcoin’s Intrinsic Value Equals Market Price was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.