So the head of JP Morgan, Jamie Dimon, just went on record as saying bitcoin is a fraudulent asset and that it’s destined to fail. Price is down somewhere in the region of 5-10% depending on what exchange you are looking at subsequent to the announcement and sentiment is considerably weaker right now than it was just 24 hours ago.
Everyone’s asking the question – what’s next?
What people have to realize is that Jamie Dimon cannot be trusted when it comes to putting forward tech insights. The guy’s a banker, sure. He’s got a strong reputation in the finance world and – at JP Morgan, at least – some will argue that he’s doing a decent job.
It can also be argued that he’s not, of course. JP Morgan was one of a handful of US financial entities that had to be bailed out by the government back in 2008,primarily because of the bank’s interest in junk assets, rooted in the rampant and out of control mortgage industry in the US for the half decade prior to said bailout.
At that point, the US government gave JP Morgan a little over $12 billion in order to rescue it from collapse. Just six months before, a bunch of institutions (of which JP Morgan was one) sat down with the same government and essentially voted to allow Lehman Brothers to fail, sparking arguably the greatest economic collapse since the 1930s.
People said to JP Morgan then – if you let Lehman fail, the world is going to panic and there’s a good chance you’ll fail too. Dimon and his gang refused to listen and six months later went begging to the US government for bailout cash.
And that’s not all.
Fast forward to 2015 and this video.
It’s the Fortune Global Conference and Dimon was a keynote. Bitcoin was priced at around $450 at the time and, when asked about bitcoin, he denounced it as destined to fail. Since then, bitcoin gained more than 1000%. For a guy that’s supposed to pick high reward assets for a living, he’s not done that great.
Bottom line, these people are panicking and, for us, that says bitcoin is doing what it set out to do.