JPM believes that Bitcoin is appropriately priced, even after the recent halving event, based on its ‘intrinsic value’ calculation. Created by JP Morgan analyst Nick Panigirtzoglou, the calculation basically takes two factors into consideration – the cost of mining Bitcoin and its current market price.
According to JPM, Bitcoin’s intrinsic value correlation is tied to two factors. The first is that the network’s hashrate has reduced by up to 20% because competition among miners for block rewards is a lot higher and much fiercer.
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