For the most complete data on all crypto currencies check: https://coincheckup.com | The crypto research platform.
Full credits for this video to NewsBTC who listed the info in this video on an article on their website:
0:00:00 JPMorgan Sees Imminent Bitcoin Price Fall; Why It’s Unlikely to Happen
0:00:05 This update is brought to you by “CoinCheckup News Updates” and was originally published on “NewsBTC”.
0:00:11 JPMorgan believes a Bitcoin price fall is imminent.
0:00:15 According to their analysts, periods when price exceeds “intrinsic value” have always led to a drop in price.
0:00:21 And following the recent rally over the past few weeks, this situation has presented once again.
0:00:27 After a fantastic run-up, which saw Bitcoin gain 120% since the start of the year, the market is currently in a cooling off period.
0:00:35 All the same, Bitcoin’s strong performance has put it back on the radar of the general public.
0:00:41 With that should come caution, and few are more cautious than JPMorgan.
0:00:45 In an article by Bloomberg, JPMorgan analysts examined Bitcoin price against “intrinsic value.” Which they believe comprises the cost of production, namely electricity expenses.
0:00:55 They noted that periods where the price exceeded “intrinsic value” were followed by a fall in Bitcoin price.
0:01:02 And given the recent price spike, this pattern is likely to repeat.
0:01:06 “Over the past few days, the actual price has moved sharply over marginal cost.
0:01:11 In compiling their data, JPMorgan analysts treated Bitcoin as a commodity.
0:01:16 They also drew on an economic theory which states that the cost of mining Bitcoin may correlate with its price.
0:01:22 “Bitcoin production seems to resemble a competitive market, so in theory miners will produce until their marginal costs equal their marginal product.
0:01:30 Break-even points are modeled for market price, energy cost, efficiency and difficulty to produce.
0:01:36 Is Bitcoin A Commodity?
0:01:38 Having said that, is it right to classify Bitcoin as a commodity?
0:01:42 And is it sensible to apply economic theory to Bitcoin?
0:01:46 Especially considering cryptocurrencies are different from all that have come before.
0:01:51 Thanks for watching this video!
If you wanna read the whole article you can go to CoinCheckup.com or go to: “NewsBTC”, who originally published this news update on their website.
Background music: Going Higher by Bensound
Creative Commons – Ask Bensound for permission if you want to use this song.
Music promoted by Audio Library https://www.youtube.com/channel/UCht8qITGkBvXKsR1Byln-wA
* Created with https://content2video.com technology | Creating videos out of your data.