Risks & Opportunities Of Investing In Cryptocurrencies - JPMorgan Report
2021-03-07 | Robin Williams
JPMorgan has released a new
report to its private banking clients
to teach them the risks and opportunities of investing in cryptocurrencies.
As per the report, which was outlined earlier in February 2021, has been distributed to clients of JPMorgan Private Bank,
which needs a minimum balance of $10 Mln to open an account.
The comes after CNBC reported earlier in February that JPMorgan co-president Daniel Pinto claimed “demand isn’t there yet” from clients for cryptocurrency services, but it “will be there at some point in future.”
The report breaks down how Bitcoin [
BTC, +0.77%]
might be valued, applying three different metrics:
the number of users,
the worth of gold,
and therefore the global
funds.
1. If applying a version of Metcalfe’s law – that bitcoin’s value is proportional to the square of
the number of users -
it might be worth $21,667 USD.
2. If applying
the present value of gold to the max supply of 21 Mln bitcoin,
it might be valued at $540,814 USD.
3. Whereas applying
the worldwide value
of cash to bitcoin’s max supply would place the crypto assets valuation at $1.9 Mln.
The report plays down bitcoin’s common comparison to gold. Despite having diversifying properties, bitcoin’s “volatility characteristics and correlation profile refute the comparison to
the existing shelter assets.”
Leave a comment
Your email address will not be published. Required fields are marked *
