Analysts at J.P. Morgan Chase are saying that the cost of Bitcoin has gone over its intrinsic value during its 2019 rally. JPM strategists are asserting that Bitcoin is exchanging above what they consider to be the currency’s intrinsic value. Like the contention for gold and other valuable metals, Bitcoin and other digital currencies have battled back-and-forth with the idea of what comprises ‘actual value.' Bloomberg was the first to report the JPM news, making the case that BTC is potentially entering a similar phase as it was in during the bullish rally at the end of 2017. The JPM experts found out that BTC has surged past its ‘actual value' just like when the value started to crumple in December 2017. As per JPM strategist Nikolaos Panigirtzoglou in a note to financial specialists on May 17, Bitcoin ought to be considered a product, which means it can include the cost of its generation as a factor in its valuation. Panigirtzoglou further added, “Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices. Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”JP Morgan has changed their perspective towards the crypto industry, since their own cryptocurrency, JPM Coin, has entered the market. While the JPM Coin is probably going to be a private blockchain that will be limited to the in-house banking system and demographic, it still represents positive support for both Bitcoin and the more extensive crypto markets that Wall Street is happy to fence its wagers in the innovation. Bitcoin has been hovering around $7700 from the past two weeks, investors are now beginning to day trade in Bitcoin’s volatile rally.What are your thoughts about Panigirtzoglou’s comment? Let us know in the comment section below.