Positive Rhetoric about Bitcoin Does Not Unfold As Such In The Main Street – Peter SchiffMay 22, 2019
JP Morgan agrees that Bitcoin has value after the recent rally that has got everyone by surprise. The value of Bitcoin crossed $8,200. This worked as an indicator calling the bear market as over.
The recent price rally was noted by JP Morgan, which was previously one of the dominant critics of the Bitcoin. JP Morgan now opines that the world’s largest cryptocurrency is moving ahead of itself with the recent rally.
Nikolaos Panigirtzoglou stated that Bitcoin has surged beyond its intrinsic value. The inherent value of the cryptocurrency has been decided by treating cryptocurrency as a commodity, and by calculating its production costs. The total intrinsic value is calculated by making use of the estimated computational power, electricity expense, and energy efficiency of the hardware.
It is getting difficult to provide intrinsic or fair value for the cryptocurrency. Researchers are of the opinion that it does not have any fundamental value; however, others are arriving at intrinsic values which are more than current prices.
The note from JP Morgan about Bitcoin is seen as a major victory for the cryptocurrency industry.
Antony Pompalino opines that one should never listen to what the bank says by tweeting, “JP Morgan is now putting out reports about “Bitcoin’s intrinsic value.” Thought it was worthless and had no value according to Jamie Dimon?? Never listen to what a bank says. Watch what they do.”
Several reports from JP Morgan have been laughed off as being ridiculous. Several others feel that this is very dangerous for the market. Those who have been devaluing the Bitcoin are looking up at the coin now.
The current data shows that Bitcoin has changed radically.
Peter Schiff stated, The CBS Bitcoin puff piece on 60 Minutes last night has so far produced no upward move in the price of Bitcoin. Maybe there will be a lag, but perhaps the recent run-up in price was driven by speculators who anticipated the positive segment and who are now selling the news. Peter stated that the positive rhetoric does not unfold as such in the main street.
A twitter participant responded to Peter by stating that if you do not like Bitcoin now that is fine; however, you will like it. The respondent further added that by that time, it would become even more expensive. The price of learning sometimes is prohibitive. And almost every investor goes through this at some point in time or the other.