JPMorgan finally admits Bitcoin has value, here is how they measure it

The world's largest cryptocurrency has surged beyond its "Intrinsic value," mirroring a similar move in 2017 which preceded the industry's biggest slump, JPMorgan Chase strategists wrote in a note on Friday.

Chief strategists at JPMorgan say Bitcoin's overpriced.

With the value per BTC exceeding $8,200 at one point, many saw this as an indicator that the dreaded bear market is finally over.

Nikolaos Panigirtzoglou, one of the authors of the note, said that Bitcoin has surged beyond its "Intrinsic value."

The note explained that the intrinsic value of Bitcoin was decided by treating the cryptocurrency as a commodity and then calculating its "Cost of production." Inputs such as estimated computational power, electricity expense, and hardware energy efficiency were used to calculate the total "Intrinsic value."

"Defining an intrinsic or fair value for any cryptocurrency is clearly challenging," the strategists wrote as a caveat.

Jamie Dimon, the CEO of JPMorgan, is infamous for his criticism of Bitcoin.

"Dimon gained notoriety in the crypto industry in 2017 when he called Bitcoin a fraud and"worse than tulip bulbs, later threatening to fire any of the bank's employees caught trading cryptocurrencies.

JPMorgan's latest report contradicts the bank's overall position on cryptocurrencies, as it essentially acknowledges Bitcoin's value.

Responding to Pompliano's tweet, many users called out JPMorgan for trying to devalue Bitcoin in order to hoard the coins.