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Good shout out to Civic in this response to JPMorgan saying bitcoin is a fraud

JPMorgan says Bitcoin is a fraud. They are dead wrong – but smart to say that

September 14, 2017 by Ric Merrifield 2 Comments

When the CEO of one of the biggest and most respected financial services companies in the world says that a new form of currency, in this case bitcoin – which is in the larger class of cryptocurrencies, is a fraud, people will listen.  So when Jamie Dimon, the often polarizing CEO of JPMorgan Chase said it – a lot of people started talking.   This piece from CNBC covers the key points.

https://www.cnbc.com/2017/09/12/jpmorgan-ceo-jamie-dimon-raises-flag-on-trading-revenue-sees-20-percent-fall-for-the-third-quarter.html

Why did he say it?  Well, for one thing, when his child invested in something and got a cartoonish return, better than anything he could deliver, in a way they didn’t really understand and can’t explain – it invites a lot of skepticism.  It is an extremely risky and volatile market – and the trend has been that most people have made a lot of money so far.

 

A number of things are going on here:

There is a cryptocurrency bubble at the moment. The frenzy around cryptocurrencies and “Initial Coin Offerings” or ICOs has many similarities to the internet bubble that burst in March of 2000. ICOs are strange because most of them are not selling stock/equity in companies, they more closely resemble Kickstarter efforts where people are pre-buying a product before it is available (a digital token that unlike a stock certificate can actually be used to do something) that can increase in value.  There is a bubble because many of the ICOs are just clear fraud (which is why China banned them entirely last week), and many are great ideas in the hands of totally inexperienced teams – so they are as likely to fail as most dot com companies in 2000. Like most bubbles, this will burst, but what survives will grow back even stronger (like a forest fire). Some think it is already h...
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