JPMorgan has delivered a report to its private banking customers to inform them of the risks and prospects of investing in cryptocurrency.
The report, which was created in February 2021 and leaked on Friday, has been circulated to customers of JPMorgan Private Bank. This banking institution requires a balance of at least $10 million to set off an account.
The news come after CNBC informed back in February that JPMorgan co-president Daniel Pinto asserted that “requests aren’t there yet” from customers looking for crypto services, but they “will be coming at a certain point.”
The report examines how Bitcoin could be evaluated, employing three separate metrics: the number of operators, the price of gold, and the global cash supply.
- If we apply a type of Metcalfe’s law – that Bitcoin’s value is proportionate to the square of the number of users – it should be worth around $21,677.
- If we apply the current price of gold to the max potential supply of 21 million Bitcoins, it would be valued at $545,814.
- While applying the global supply of money to Bitcoin’s potential max supply, this would make the crypto’s appraisal standing at $1.9 million per coin.
The report downplays Bitcoin’s regular comparison to gold. Despite enjoying diversifying properties, Bitcoin’s “volatility qualities and correlation profile contradict the comparison to the conventional safe-haven asset.”
In a recent leak of a similar report, it became clear that JPMorgan strategists advise investing 1% of investment portfolio in Bitcoin.
