A couple of weeks ago we said that if it was possible to do so the banks would seek to crash Bitcoin. And surprise surprise now we see an all out assault on crypto currencies from all corners of the banking establishment. The Chinese have moved against crypto exchanges, and Jamie Dimon, CEO of JP Morgan, has again reiterated that he thinks Bitcoin is a fraud —- like the dollar, printed by the Federal Reserve (but the currency Jamie Dimon swims in) is not? I mean, they both might be figments but it’s not like the dollar is gold or something. At least the crypto currencies allow for frictionless or nearly frictionless exchanges across the world, and they allow one to bypass the current and deeply crony banking system.
Oh wait, maybe that’s why Jamie Dimon doesn’t like Bitcoin so much. Do you think?
Thing is the attack on cryptos is an excellent chance to see how robust the currencies actually are. So far they’ve taken a good hit and they may take even more hits in the future. However it will be interesting to see where the hard bottom is.
Of course that hard bottom could be zero. We’ll see. But it is still my opinion that cryptos and blockchain are truly revolutionary technologies. Revolutionary enough to make Jamie Dimon cry.
Also this isn’t the first time Jamie Dimon has expressed his fear of Bitcoin. The last time was in 2014 when it was roughly $840/Bitcoin. Today one Bitcoin trades at $3304.
(From Value Walk)
His comments were absurd.
If bitcoin is the currency of corruption and crime… I have to wonder, when JP Morgan’s fellow global bank, HSBC, was fined US$1.9 billion for laundering money for Mexico’s Sinaloa Cartel and Colombia’s Norte del Valle cartel… how many bitcoin were involved? That would be… zero.
But less logical than all of that is Jamie’s suggestion that “eventually [bitcoin] will be closed”.
As it happens… Bitcoin can’t be “closed”. It’s not an overleveraged credit derivative fund. It’s a distributed blockchain running on a global network of computers.
As for “fraud” and “tulip bulbs”… it’s a statement from someone who would appear to know fraud well. The US$66 billion-dollar current value of bitcoin in circulation is only 5 times bigger than the US$13 billion then-record settlement that JP Morgan bank paid for its alleged role in underwriting fraudulent securities prior to the 2008 financial crisis. That should help put the numbers in perspective.
Just to clarify, bitcon is a terrible currency for crime.
As many people know, every bitcoin transaction is recorded on the blockchain for anyone to see. A suitcase of cash, albeit impractical, is less traceable than bitcoin. Gold is an even better for criminal value transfer, as it resides completely outside of government issuance, and doesn’t even touch the digital realm.
When it comes to bitcoin, there are companies that specifically help law enforcement to follow digital money trails and track down suspected criminals that use bitcoin.
Bitcoin is just a relatively uncomplicated, cryptographically secure medium of exchanging value. It’s scarce by design, unlike fiat currencies which can be created in their trillions at the push of a button.