The statements of JPMorgan, one of America’s largest banks and opportunists of the new era, about cryptocurrencies promise to the people.
JPMorgan stated in a short report on Wednesday that the rise in bitcoin price may not be “sustainable”. Stating that “volatility should decrease” in order to prevent this, analysts published a more comprehensive report on Thursday.
JPMorgan: Is Bitcoin a Good Investment?
Miners spend varying amounts of money to be able to generate new bitcoins on the blockchain network. This cost of production is among the factors used to value it.
According to JPMorgan analysts, the Bitcoin price is “much higher than the cost of production” in its current form. According to Reuters, this indicates that the price is “higher than it should be.”
Bitcoin has started to become part of the mainstream with the interest of institutional investors. According to JPMorgan analysts, as Bitcoin gains more foothold in the mainstream, it is starting to be more affected by macroeconomic developments. Bitcoin, which some people use to diversify their investment basket, may lose this feature.
The JPMorgan team also graded him by looking at how well he performed during periods of downturn in the stock market. In the report, “Crypto money; It is one of the worst hedges that can be taken when the stock markets are falling. ” comment was made.
Some things you should know about Bitcoin
As in real life, you must secure your wallet. Bitcoin makes shopping from all over the world very easy and allows you to take control of your money. Of course, such important features raise important security concerns. Bitcoin can be very safe if used correctly. Remember that the security measures you take to protect your money are your responsibility.
Due to its youthful economy, unconventional nature, and sometimes illiquid market, the value of a bitcoin can increase or decrease unpredictably in a short time. That’s why we don’t recommend keeping your savings in bitcoin. Bitcoin should be considered a high risk property, and you should never store any amount of money you cannot lose as Bitcoin. If you are paid in Bitcoin, most service providers will instantly convert it to your local currency.
Any transaction you make with Bitcoin cannot be recycled, it can only be refunded by the recipient of the payment. That’s why you should be careful about dealing with companies and people you know and trust, or with famous companies. By them, companies should control their payment requests to their customers. Bitcoin detects spelling mistakes and usually won’t let you send money to an invalid address by mistake. Additional services may be available in the future to provide more choice and security to customers.
Bitcoin is not anonymous
It takes some effort to protect your Bitcoin privacy. Bitcoin transactions are stored publicly and permanently on the network. So all Bitcoin transactions and balances can be viewed by anyone. The identity information of the user remains confidential, as only the transaction addresses will be seen, except for the names disclosed in a purchase or in other cases. This is one of the reasons why Bitcoin addresses should only be used once. Never forget that it is your responsibility to take firm steps to protect your privacy.
Instant transactions are less secure
A Bitcoin transaction takes place within a few seconds and starts getting its approval within the next 10 minutes. While it may seem like a completed transaction during this time, it can still be undone. Malicious users can try to cheat. If you can’t wait for approval, you can secure security by charging a low transaction fee or using an insecure transaction detection system. For high-cost payments such as $ 1000, it is recommended that you get 6 or more separate approvals. Each approval process exponentially reduces the risk of returning.
Bitcoin is still experimental
Bitcoin is an experimental currency still in active development. Although its experimentality decreases as its use increases, remember that Bitcoin is plunging into previously untested ideas. That’s why nobody can predict his future.
Bitcoin Government taxes and controls
Bitcoin is not an official currency. However, most governments still require you to pay taxes on anything of value, including income, sales, payroll and bitcoin. It is your responsibility to make sure you understand the tax and other regulatory mandates issued by your government or / or local municipalities.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.