While the entire world is talking about the next big wave of “cryptocurrency” and how it is going to set the next big revolution in the financial markets, CEO of JP Morgan Jamie Dimon seems to think otherwise.
Earlier this week at the Delivering Alpha conference, Jamie expressed his strong views against Bitcoin and the overall concept of how cryptocurrencies operate. In his harsh criticism, Jamie said “It is worse than tulip bulbs” while referring to a famous market bubble from the 1600s. He further added that “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
Bitcoin is a virtual currency that was first introduced in 2009. In past two years the cryptocurrency market has witnessed a lot of investor participation from all around the globe with many analysts predicting this to be the next big revolution in the financial markets.
Bitcoin and other crypto coins like Ethereum and Altcoins allow cross-border payments while bypassing the traditional banking system and allows one person to pay directly for the purchase of his/her’s goods and services. This makes Bitcoin a decentralised digital currency backed by Blockchain technology.
However, analysts have time-and-again raised questions of Bitcoins being used for some illegal activities like money laundering and online crime. Pointing to this, Jamie said “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars. So there may be a market for that, but it would be a limited market.”
Jamie’s words were absorbed with quite a seriousness as the markets witnessed a huge sell-off immediately after the interview as the prices of Bitcoin plunged by nearly 6-8%. However, don’t mistaken this for the ongoing sell-off that is majorly attributed to the ban put by China’s financial-regulatory-body-officials against the local Chinese Bitcoin exchanges and trading platform.
Jamie’s Criticism Not Received Well by the Pro-Bitcoin Fans and the Overall Crypto Community
There is no doubt to the fact that Jamie is one of the most powerful people in Wall Street, however, following his interview and harsh criticism for Bitcoin, popular analysts and the global Bitcoin investor community has reacted by showering a lot of criticism to Jamie’s little understanding of the Bitcoin market.
Fred Wilson, one of the first investors in start-ups related with Bitcoin and a partner at Union Square Ventures said “You have to have an open mind to be able to see the future.”
Jamie, you're a great boss and the GOAT bank CEO. You're not a trader or tech entrepreneur. Please, STFU about trading $BTC.
— Alex Gurevich (@agurevich23) September 12, 2017
Alex Gurevich, who has recently joined the John McAfee Bitcoin supporting side, and has been the ex-head of Global Marco Trading has tweeted with strong criticism in sharp words. He tweets: “Jamie, you’re a great boss and the GOAT bank CEO. You’re not a trader or tech entrepreneur. Please, STFU about trading $BTC.”
Jamie Dimon has had an internal "Blockchain Working Group" for over 2 years at JPMorgan & my friend is on it. Basically, he's full of shit.
— Charlie Shrem (@CharlieShrem) September 13, 2017
Bitcoin pioneer / Founder http://BitcoinFoundation.org Charlie Shrem called Dimon out on his bluff. Claiming he has an insider working at JP Morgan in their “internal working group.”
Technology Pioneer, Chief Cybersecurity Visionary of MGT Capital Investments, Inc. John McAfee was recently on CNBC to rebut Dimon. Asking the very valid question of which is a fraud, the US dollar or Bitcoin? Referring to proof of work in the cost of mining a Bitcoin vs. just printing a piece of paper. You can check out the video here.
There is no doubt to the fact that the Blockchain Technology is being seen as a potential threat to the core business of the existing banking system. Ari Paul, co-founder of BlockTower Capital said “Cryptocurrency serves this function an order of magnitude better than the existing banking system. I suspect that Dimon recognizes this, and is trying to delay the inevitable replacement of one his bank’s core services by a far more efficient upstart.”
Many other have also criticised and expressed strong views against JP Morgan, saying the financial institution was using its image to lobby for the existing government-based financial institutions like banks and is misguiding gullible investors.
Analysts have also said that there is a possibility of a bubble in the crypto markets, but it is extremely lame to denounce and call the entire cryptosystem as a fraud.
At Coinpupil we support Bitcoin 150%. Dimon is a very intelligent man who feels threatened by the existence of Bitcoin and the superior technology behind it.
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