Some strategists which include the global market strategist at JPMorgan, Nikolaos Panigirtzoglou, think Bitcoin sudden rapid rise in price is not right. According to a report of the analysis by Bloomberg, there are signs Bitcoin price is following the same trends as in 2017, which will likely lead to a collapse.
In the analysis report, Bitcoin was regarded as a commodity which has the cost of production and selling price. This comparison proved that Bitcoin rise in price does not equal its present value.
Some of the cost calculated includes electricity cost, computational power, and hardware energy efficient cost. From this recent calculations, BTC’s actual price has grown far above its marginal cost. The strategist thinks the number one digital currency is moving at a rate that signifies there will be a sudden crash.
JPMorgan group have always been skeptical about bitcoin, mostly its CEO, Jamie Dimon who has never been a fan of bitcoin. He called bitcoin a fraud, bet more of his attack on bitcoin began after his bank announced its intention to have its own cryptocurrency called “JPM Coin.” Its plan is to use the new coin to settle payments between big institutions, and it will be redeemed 1:1 US Dollar. This new coin will not run on a blockchain network that is open to the public but will be issued on JPMorgan’s private blockchain called Quorum.
According to the bank, the coin will be extended to other platforms that operate on a standard blockchain network. This will enable the bank to handle its large volume of transactions. According to the report, JPMorgan moves over $6 trillion each day across the globe for its clients.
Bitcoin experienced a long bearish condition in 2018 but after a little upward move in price since April, its price has continued to go higher. Bitcoin recorded up to 150% increase within this short period, and this rapid increase spiked off suspicions.