Today I want to discuss one article I read in the morning, dedicated to the rather well-known criticism of Bitcoin and cryptocurrency Jamie Daimon (Jamie Dimon), who concurrently is Chairman and CEO of JPMorgan Chase, the 6 largest Bank in the world. Of course, the opinion of Jamie for many not shocking, we have already understood his very negative attitude, but I would like to look more closely at his last statement and how it describes something more than a simple denial of cryptocurrency banks and financial institutions.
During the conference, the Axios in Los Angeles, Jamie spoke about the fact that he did not want to speak out against Bitcoin, as it absolutely to spit. I found it interesting that Jamie was very emotional in his statement that was most likely caused by a certain reaction to its previous judgments crypto community. Isn’t it funny how, despite not wanting to be the main opponent of Bitcoin, Jamie is one of the most persistent of his critics. The following is a schedule of Bitcoin thoughts Daimon about it. Mostly negative comments and refusal to discuss the topic in principle, but at the peak of prices Jamie was regretting his words.
There is nothing surprising in the fact that to lower the price of BTC Jamie has become more negative in relation to it, by and large, I care about his opinion. Much more importantly, such rhetoric of heads of major companies in the global financial system shows that they are aware of the power of Bitcoin and cryptocurrency and the meaning associated with that movement. We heard Dimon doesn’t believe in Bitcoin, but I’m sure in the future of blockchain technology. And this is natural, as this technology will help companies to be much more effective. Most likely, Jamie noted the possible use of the blockchain in the financial sector, JPMorgan invest more in developing solutions based on Ethereum, and several other protocols.
A problem that sees Dimon, is not the technology of the distributed registry, and directly in cryptocurrencies, that’s why he so radically opposed to Bitcoin. Bitcoin and other currencies compete directly with the traditional monetary system with Fiat currency. Between the almost oligarchic traditional banking system and Fiat money there is an important correlation. The ability to control the currency and various levers of pressure on them, such as interest rates, monetary policy, etc., are firmly tied to the banking system. At the same time, Bitcoin belongs to no one, no one is controlled by and resistant to censorship, which is directly contrary to the traditional financial system and its infrastructure. That is the main reason of the negative side of Jamie Daimon and other bankers.
In my experience I can tell you that 90-95% of people employed in the financial sector really don’t understand what is a blockchain and cryptocurrencies, 4% understand their application in Finance, and the remaining 1% of influential people are scared of their existence, because I understand that crypto-currencies can replace the traditional. We already see this happening, for example the DASH and https://discoverdash.com/ are a great example of the use of cryptocurrency in real life for payments and store of value. It is noteworthy that one of the sections of their site, DASH keep track of the number of participants in the business, receiving their currency, and their numbers are from February 2018 increased from ~600 to 4000, with most of them registered in Venezuela.
Jamie and other bankers must not forget that cryptocurrencies fix one of the main problems on the world stage today, the main reason which are financial institutions: incorrect monetary policy. Often the highest echelons of power make bad decisions on the issue of money in the hope that this will be sufficient, or simply to artificially delay the possible consequences during the reign of a policy. To this are added also the errors in the management of interest rates and capital controls, limiting foreign exchange transactions and access to financial services. In this respect Venezuela is a great example of DASH and is actively developing in this field to show the bankers that the existing system is slow comes a new.
The financial system did nothing to help the citizens of Venezuela, moreover, they will do everything to keep its own monopoly and prevent new players. Jamie and other bankers should be scared that their status quo will not last a few years, and we will see the advent of new technologies in Turkey, South Africa, South America and other emerging markets and eventually in Europe, Australia, Canada and the United States. Reason technology will be a mixture of crisis real estate market, credit crisis, and activity in emerging markets with their sharp geopolitical, currency and debt crises.
In this situation, when the financial institutions are overly comfortable position and can not solve the modern world problems the citizens of the countries for the first time there is an alternative solution. In 2008, this decision did not exist, despite the availability of opportunities to save money in gold and silver, did not exist replacement Vietnam money. And since now this alternative exists, I think we will see a rise of cryptocurrency implementation in daily life, and it will be a major change in the history of global Finance. Jamie Dimon and other bankers are already preparing for this by conducting our own development. However, they are not prepared for the fact that the money directly they move from national currencies to the currency based on the technologies that will make ordinary citizens more independent.