[2017-10-02] Jamie Dimon's comments on bitcoin miss its potential value

[velo_coinpit]

Jamie Dimon's comments on bitcoin miss its potential value
by Bharath Rao

Several weeks ago, Jamie Dimon created a stir in the cryptocurrency markets with his pronouncement of bitcoin as a “fraud.”

His comments demonstrate a distinct lack of understanding of the reality that bitcoin, in fact, has incredible value proposition and stands to replace some of the antiquated characteristics of the current financial markets.

Bitcoin has been the speculation of much heated debate recently. It’s been dismissed by critics as a fraud and a Ponzi scheme, while simultaneously being praised as the greatest financial invention in the last century.

Jamie Dimon, CEO of JPMorgan Chase
JPMorgan Chase CEO Jamie Dimon's recent critical comments about bitcoin are off the mark, says Leverj's Bharath Rao.
IMAGE: Bloomberg News

Its previous associations with illicit markets and its extreme volatility has commanded the attention of the general public as to the nature and possibilities of cryptocurrencies, as well as the risks.

While Bitcoin’s value has fluctuated, in general it has risen steadily. Bitcoin veterans know there are many people who hold most of their wealth entirely in crypto. When the price falls, these bitcoin aficionados view it as an opportunity to convert more of their holdings from fiat.

The legacy market participants struggle to understand why this might be the case. What gives confidence to bitcoin holders to ride out a downturn without losing confidence? Why are many crypto investors interested in the wild west of ICOs rather than the regulated stable legacy markets?

The answer is that the cryptoeconomy has a much greater value proposition than any legacy market. The ability of a third party to delay, censor, or monitor transactions is a risk, and the elimination of any risk automatically increases confidence. Risk is also a form of cost, and the crypto-ecosystem is always more cost efficient and secure.

If one understands this value proposition, they also understand that the value differential between the legacy and crypto ecosystem is not just large, but precipitously large. This causes an immense economic pressure that will rapidly move capital from legacy systems to the crypto economic system. The progress on this has been slowed by crypto’s cumbersome user interface. Once this is addressed, the dam will break.

Builders of economic systems in crypto have been the winners since 2009 in fortune and their stature among their peers. They are the ones that will continue reap rewards as this technology continues to mature and become more widely adopted.


https://www.paymentssource.com/opinion/jamie-dimon-comments-on-bitcoin-miss-the-mark

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[darkangel11]

That's correct. The Bitcoin ecosystem is much safer, cheaper and faster than the legacy. I believe Jamie knows that and his comments were made simply to manipulate the market and see if he can add to the panic. Those comments were made at the same time when we started getting news about ICOs being banned in China and the charts started signaling a correction. Jamie did the math and hoped for a reply from 2013, but failed. The more money there is in BTC the less prone to crashes it will be.

[iamTom123]

That's correct. The Bitcoin ecosystem is much safer, cheaper and faster than the legacy. I believe Jamie knows that and his comments were made simply to manipulate the market and see if he can add to the panic. Those comments were made at the same time when we started getting news about ICOs being banned in China and the charts started signaling a correction. Jamie did the math and hoped for a reply from 2013, but failed. The more money there is in BTC the less prone to crashes it will be.

And I think the humble man is really successful in creating some stir and he might go down with the Bitcoin history as one of the most famous people who spread some negative comments about Bitcoin. Well, he commanded some attention because he is an executive of a well-known financial institution. Coupled with the bad news from China, his comments somehow managed to put down Bitcoin for a little time but because it is a very resilient cryptocurrency it is now bouncing back and sadly (or rather fortunately) it did not progress into a bubble pop just like the much touted tulip bulb mania which happened centuries ago.

[velo_coinpit]

That's correct. The Bitcoin ecosystem is much safer, cheaper and faster than the legacy. I believe Jamie knows that and his comments were made simply to manipulate the market and see if he can add to the panic. Those comments were made at the same time when we started getting news about ICOs being banned in China and the charts started signaling a correction. Jamie did the math and hoped for a reply from 2013, but failed. The more money there is in BTC the less prone to crashes it will be.

Yes, and of course, there was this... http://www.zerohedge.com/news/2017-09-16/if-jamie-dimon-hates-it-so-much-then-why-jpmorgan-buying-bitcoin-europe

[squallw]

Banks are scared about bitcoin because it can beat them, thats it. They are trying to FUD and destroy btc before btc destroy them.

[Taki]

I think Diamon will never stop to put a shit on bitcoin. Well normally, bitcoin brings danger to all his activity, if JPMorgan will start to loose clients cause of bitcoin, Diamon will loos his astronomic salary. Everything that he says simply makes me laugh and that's it.

[okae]

Banks are scared about bitcoin because it can beat them, thats it. They are trying to FUD and destroy btc before btc destroy them.

that's what they want to let people think about it, but the truth is that they already jump into the game, all those misinformation and FUD about bitcoin only made them take his advantage over the rest, while people are thinking that bitcoin has no future, they are investing more and more time, effort and money in the shadows... ATM the current situation is perfect for all of them, i mean cheap bitcoins and not so many people around... just look what JPMorgan did....

[velo_coinpit]

Banks are scared about bitcoin because it can beat them, thats it. They are trying to FUD and destroy btc before btc destroy them.

that's what they want to let people think about it, but the truth is that they already jump into the game, all those misinformation and FUD about bitcoin only made them take his advantage over the rest, while people are thinking that bitcoin has no future, they are investing more and more time, effort and money in the shadows... ATM the current situation is perfect for all of them, i mean cheap bitcoins and not so many people around... just look what JPMorgan did....