It’s been revealed that JPMorgan outlines some brand new opportunities in the crypto markets for the private banking clients who are holding a minimum of $10million in their accounts.
The report was obtained by CoinDesk, and it uses three metrics in order to propose the true value of Bitcoin.
According to the reports coming from the Daily Hodl, the first metric involves a version of Metcalfe’s law – this states that BTC’s value is proportional to the square of the number of its users.
According to JPMorgan, “the application of Metcalfe’s law reveals that Bitcoin would be worth $21,667. JPMorgan also calculates the value of Bitcoin by comparing its max supply of 21 million to the price of gold, coming up with a valuation of $540,814 BTC,” according to the notes by the same online publication mentioned above.
It’s also been revealed that by applying the global value of money to BTC’s max supply, the global investment bank said that Bitcoin would be priced at $1.9 million.
Downplaying Bitcoin vs. gold comparison
It’s also important to note the fact that JP Morgan reportedly downplays comparisons between Bitcoin and gold, saying that its “volatility characteristics and correlation profile refute the comparison to the traditional safe-haven asset.”
The online publication mentioned above also reminded readers that the Cross-Asset Strategy team offered three different reasons for which investors should be considering Bitcoin.
Check them out here: “the overall favorable market conditions, the diminishing returns on bonds and other traditional hedges, and the unconventional platform of Bitcoin.”
Bitcoin adoption intensifies
It’s been just revealed that Mathew McDermott, head of digital assets at Goldman Sachs’ global markets division, said that the New York-based investment bank is witnessing huge institutional demand for Bitcoin (BTC) and the crypto markets.
At the moment of writing this article, BTC is trading in the green, and the digital asset is priced at $54,816.68.