While a leaked slidedeck from yesterday’s Goldman Sachs conference call shows that the infamous firm is still cold on Bitcoin (BTC), JPMorgan Chase (JPM) think the crypto is correctly valued after the recent reward halving.

JPM arrive at this conclusion using their ‘intrinsic value’ calculation, developed by in-house analyst Nick Panigirtzoglou. This method takes into consideration the cost of production of Bitcoin-as-a-commodity, namely the cost of mining versus market price.

According to these calculations, Bitcoin had actually been undervalued going into the halving, factoring in projections for increased cost of production following the halving.

Explained in leaked documents, JPM said that two factors especially have changed after the halving to get price in line with intrinsic value. First, hashrate on the Bitcoin network has dropped off to the tune of about 20% in reaction to the heightened level of competition for fewer bitcoin in reward for mining a block.

Second, the miners who have remained online on the network are more efficient. CryptoGlobe recently covered that as much as 30% of Bitcoin miners would become too outdated to compete after the halving.

Thus, the new marginal cost of production (a specific economic concept) after the halving, factoring in the current difficulty, hashrate, and reward on the network, puts Bitcoin’s correct price between $9-10k.

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