Bitcoin and Ethereum prices are "very undervalued"

Bitcoin and Ethereum prices are "greatly undervalued" - ethereum bitcoin minBitcoin (BTC) and Ether (ETH), the Ethereum cryptocurrency, are assets whose prices are undervalued. This is indicated by a recent report released by Bloomberg Intelligence which also shows that the appropriate price for these digital currencies would be roughly double their current value: USD 100.000 for BTC and USD 6.000 for ETH.    

Understanding the difference between price and value

The study, led by analysts Mike McGlone and Jamie Douglas Coutts and reviewed by various media, takes into account several factors to reach this conclusion. To understand this, you need to understand the difference between price and value. While the former is the price of a good on the market, the latter is the usefulness of a product to its consumers, and what they would be willing to pay for it. 

In the case of Bitcoin, one of the pivotal points in the rise in value was the current conflict between Russia and Ukraine, which sparked a geopolitical upheaval and exposed the flesh of the world economy. As CoinMarketCap reports from Bloomberg, analysts commented that "the war is increasing the value of Bitcoin as a global digital reserve asset, while Ethereum is evolving as an internet collateral."  

Bitcoin has become a direct competitor to gold, which, in the midst of the conflict, has seen its potential as a store of value erode. Bitcoin, on the other hand, has seen its price rise by 20% since the start of the war. As reported in CryptoNews, Bitcoin has taken the road as a store of value, being considered "digital gold", this after the start of the war, its price had suffered a slight drop. 

For McGlone and Douglas Coutts, the world is in a transition phase between the old school, which still sees gold as a investment, and the “emerging” digital value store that the new generation sees in bitcoin.

The Ethereum merger could change its pricing fate  

Likewise, in the case of the ether, Bloomberg analysts conclude that its current price is undervalued by nearly 50%. USD 6.128 is the exact number they consider a fair price for the Ethereum cryptocurrency. 

The reason would be the imminent change that the network co-created by Vitalik Buterin is about to undergo. Recently, speculations have begun about the final date on which the merger will take place (“The Merge”). Even the official website of the Ethereum Foundation itself showed that it would arrive in mid-2022. At that point, both Proof-of-Stake (PoS) and Proof-of-Work (PoW) Ethereum will work in parallel. This, while the final step is being taken to "shut down" PoW mining.  

According to MarketWatch in its review of the Bloomberg report, when this happens, the demand for Ethereum will increase, and even more institutional funding will flow into the network.  

The report also estimates that if Ethereum's issuance falls and becomes a deflationary asset - as expected - it is possible that its valuation could rise even more due to its steadily increasing scarcity.  

Like Bloomberg analysts, investment personalities are bullish on the price of ETH. Among them is Mark Cuban, owner of the NBA Dallas Mavericks team, who said he was bullish. 

Cuban said days ago that according to his forecast, the price of ETH will rise after the merger. As reported by Crypto-currency, this entrepreneur has an investment portfolio consisting of 60% bitcoin and 30% ether. He has also invested in scaling solutions for Ethereum, such as the Polygon sidechain.