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October 4, 2022
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JP Morgan Bank analyzes the value of Bitcoin. It is a service for the most affluent customers –

JP Morgan Bank reportedly presents its wealthiest clients with investment opportunities in the cryptocurrency market. These are mainly people with assets worth at least USD 10 million.

JP Morgan bank offers its richest clients cryptocurrencies?

Report reached by the portal CoinDesk, presents three different indicators to help you calculate the true value of Bitcoin (BTC). The first metric concerns Metcalfe’s law. This states that the BTC value is proportional to the square of the number of its users. According to JP Morgan, applying Metcalfe’s law shows that Bitcoin should be worth $ 21,667.

But the bank also calculates the value of the cryptocurrency by comparing its maximum supply – 21 million – with the valuation of the gold market, already obtaining a rate of as much as 540 814 USD for 1 BTC.

There is also a third methodology. Bank experts say that using the global money value indicator, which is compared to the maximum supply of BTC, you can see that the price of the cryptocurrency will be as high as $ 1.9 million.

JP Morgan reportedly downplays comparisons of Bitcoin to gold at the same time. Analysts explain that “Volatility characteristics [BTC] and the correlation profile disproves the comparison with traditional safe assets. “

The bank has been researching BTC for a long time

It is worth adding that this is not the first time that a bank has shown interest in the cryptocurrency market. In January, the Cross-Asset strategy team outlined various reasons why investors should consider buying Bitcoin. They included, inter alia, generally favorable market conditions and the ever lower returns that can be obtained from bonds and other traditional assets.

Banks’ interest in cryptocurrencies does not end only with Bitcoin. In February, we learned that both JP Morgan and Goldman Sachs had acquired exposure to Polkadot ETP (a publicly traded product) by 21Shares, which is listed on the Swiss stock exchange under the name ADOT: SW.

The whole situation is a bit ironic. As late as 2017, JP Morgan CEO Jamie Dimon openly criticized Bitcoin. He believed that only fools invested in cryptocurrencies. He added that he would fire any employee who found out to have bought BTC. It is all the more funny that apparently during this period his … daughter invested in digital currencies.

Ultimately, JP Morgan also began to experiment with blockchain technology. over your own stablecoin – JP Coin.

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