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Jp Morgan Publishes Detailed 71-Page Bitcoin Bible Beside Calling It a Bubble

JPMorgan Chase (JPM) CEO Jamie Dimon has been in the public limelight for the controversies on Bitcoin and cryptocurrencies. Since from calling cryptocurrency a bubble and fraud to saying blockchain is real, he seems now publishing “Bitcoin Bible for investors”. 

Bitcoin Bible – 71-page document

Now the bank published a 71-page document about cryptocurrencies and Bitcoin works. The report details the technology behind cryptocurrencies, applications, and challenges of cryptocurrencies.

The intention of the report is to help gain insight on the market and evaluate its potential. It is optimistic about cryptocurrencies. However, it says the technology is in its initial stages and just trying new approaches.

“We would note that it is not pre-ordained that cryptocurrencies will succeed as there are valid concerns about what economic value they really contribute. But in a time of rapid innovation, many new products will are often-and-errored. We believe the potential disruption from Blockchain cannot be ignored.”

Crypto has huge applications

The authors note that there are many areas cryptocurrencies could be useful where traditional money systems are slow. Examples include cross-border payments, underground economy, and the Internet of Things. Other areas include reward tokens and funding systems for other innovations on the blockchain.

However, it is hard for them to compete with central banks. This is because the current central-bank based fiat such as euro and dollar provides “efficient media exchange, stores of value and units of account.”

The report says,

“CCs are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity, even as the latter is under threat.”

It adds that technical signals can help gauge market direction in crypto markets. Markets have been sending the right signals in the recent months. This is despite the crashes among early movers as is usual with the excitement of innovations “before more realistic prices emerge among the eventual survivors.”

It says that they expect regulators and marketplace to weed out the negative, less useful characteristics. This would leave out what is desirable and adds market value. However, the future market will depend on perceived economic value.

Many challenges stand the way of cryptocurrencies

However, it details a number of challenges that cryptocurrencies face. They say it will be extremely hard for cryptocurrencies to replace and compete with government currencies.

For instance, they say ownership of most of the crypto projects is by a few individuals. Again, the current opportunity around cryptocurrencies is limiting application in the banking sector.

They also mention the obvious complaint against crypto. These include concerns about volatility and exposure to hacking. Other challenges are rising cost of mining and regulator concerns about identities. It says large losses resulting from hacks on exchanges.

Turning the statements

Late 2017, Dimon argued was on Bitcoin as “fraud” but again in Jnaury 2018, he turned his statement to a positive realism and admits that “blockchain is real”.

Additionally, during an interview with FOX Business’ Maria Bartiromo says he regrets making those statements.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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