JPMorgan isn’t known for having overly positive opinions about Bitcoin and the wider crypto market. Back in January, JPMorgan released a report that said mining is “unprofitable” – which based on its cherry picked data is true. However, the report was full of holes and the data was hardly diverse. In a fresh statement, JPMorgan claims the fair value of Bitcoin is a shocking $2,400 after assessing the marginal cost of producing a Bitcoin. It’s safe to say that the crypto mining world is up in arms over JPMorgan’s latest statement and is branding it a gross miss categorization.
A Study Fraught with Flaws
JPMorgan loves to conduct “studies” using data it hand-picked in order to give the result it desires, and this new revelation is clearly another case of this practice. Due to the inherent nature of the Bitcoin network, there can be no marginal cost of mining. Since the activity takes place in every corner of the globe by large corporations and individuals at home – all of whom pay a different price for equipment and electricity – it means that finding the average marginal cost is impossible. Once again. JPMorgan is pumping out FUD reports for its own amusement.
JPMorgan Creating its Own Token
Not one to be impressed by the range of tokens out there, JPMorgan has gone ahead and created its own cryptocurrency token. JPM Coin will initially be a private coin for institutions that want to deal with JPMorgan. Financial institutions that want to buy into JPMorgan’s financial products – such as ETFs, ETNs, and funds – will have their currency converted into JPM Coin, sent to JPMorgan and then entered into the product. It will allow transactions to happen much faster and at a lower cost than before, savings clients millions every year.
A Direct Competitor for Ripple
Ripple is having a tough time of things at the moment, as its xRapid platform is rather empty. If JPMorgan’s platform is successful when it launches, it could quickly become the go-to platform for banks and other financial institutions. Thanks to its name and prestige, JPMorgan will easily sign up more banks and other financial services firms than Ripple, leaving Ripple out in the cold.
JPMorgan is well known for manipulating data to get the results that it wants, so our best advice to you is to ignore any special reports from JPMorgan. Chances are the data is heavily manipulated, making the report not worth the paper it’s written on.
