Despite showing a positive phenomenon over the past few times, many parties continue to warn about the badness of Bitcoin. This time it is the turn of analysts from JP Morgan who say the cryptocurrency is showing clues to the economic side and a bad hedge against falling prices.
The current Bitcoin price is far beyond JP Morgan's estimates and fair value. The adoption of this cryptocurrency is also increasing with cyclical assets, that is, reducing the benefits of diversification in Bitcoin, quoted by Reuters, Friday (19/2/2021).
"Crypto assets continue to rank as the worst hedge against major draws to equities, with the question of diversifying benefits at prices that are above production prices," said analyst JP Morgan.
They say the correlation with cyclical assets increases with the mainstream use of Bitcoin as well.
Meanwhile, some Bitcoin supporters argue that the currency is a digital version of gold, which can hedge against inflation and lower the price of the dollar.
Bitcoin's value doesn't always go up. It was at a price of US $ 51,116 or Rp. 719 million after previously being at a record high of US $ 52,640 or Rp. 741 million last Wednesday.
But indeed this month Bitcoin has jumped by 45%. This phenomenon is due to a number of large companies that have started accepting payments using this digital currency such as Tesla, Mastercard and BNY Mellon.
This increase is also likely Elon Musk's interference. He was the determinant of the Bitcoin price increase several times, including when Tesla bought up coins worth US $ 1.5 billion or Rp21.1 billion.
He's also been quite vocal about defending Bitcoin, saying the currency is a little better than holding cash.
JP Morgan said directly that Bitcoin needs to be priced at US $ 146 thousand or Rp2.05 billion in the long term. This is due to the market capitalization being equal to the total private sector investment in gold via traded or exchange-traded funds and coins.
