What Jamie Dimon Got Wrong About Bitcoin and Tulips

Red-Apple

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Quote from: coin_1122 on September 18, 2017, 08:30:02 AM

JP Morgan is firstly a bank which can do a lot of transactions with people's money. I think he is very disappointed because many people are doing the transaction without bank interefence in between them. That makes him very angry because he is loosing a lot of transaction fees.

not really!
people are still using banks at large and all their transactions go through them still to this day. and if bitcoin did anything, it increased their transactions! because simply people buy bitcoin more and more every day and to do that they have to use a bank to make a fiat deposit on an exchange and buy.

coin_1122

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JP Morgan is firstly a bank which can do a lot of transactions with people's money. I think he is very disappointed because many people are doing the transaction without bank interefence in between them. That makes him very angry because he is loosing a lot of transaction fees.

YuginKadoya

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There might be some explanation why he compared bitcoin to tulips or symbolizes with that flower only he can understand, maybe because of the tulips can gradually grow that is why he is comparing it to bitcoin, or the numbers of it when it does blooms, but any way Jamie Dimon may prefer tulips to be lost in the 17th century, maybe? and after calling bitcoin a fraud is awfully unreasonable and then this!

SUDARMONO

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bitcoin is a very powerful currency that is not consumed by inflation, even its value continues to rise like gold, unlike the currency created by banking institutions whose value is decreasing because of inflation of a price, I think the currency should be around the world such as bitcoin or gold, and bitcoin is not a fraud.

manselr

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I have noticed that computer illiterate people that only use screens for facebook and instagram, and generally boomers, have a hard time grasping the concept of digital scarcity, and why this is one of the reasons BTC is valuable. They also don't understand that unlike tulips, software can keep getting improved and adding value to its already valuable marketcap.

Let them cry about it, we will be getting rich in the meantime. Remember that if everyone got it, we couldn't get rich. We need the laggards to we can keep accumulating at a cheap price.

SonnetStar

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I mean when I heard the guy has his own stake in this market , he's probably heavily invested himself...you know he caused or tried to cause hysteria on purpose. Nobody does or says anything without purpose.

So our job is to find out what his purpose was...was it really in the public interest or is he playing some sort of game that benefits him and his friends?

The future value of bitcoin, as OP said, is going to be huge

krishnapramod

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People began using Bitcoin in 2009 because it solved problems of the existing money and banking system: inflation, expropriation, taxes, use restrictions, financial repression and fees, especially for small and cross-border transactions. The economic value of these services serves as the underlying base of value, just like the value of tulip bulbs supported the tulip futures contracts. But bitcoin became monetized and its value far exceeds the current use value in transactions. Its value is now based on projected future need for protection against the problems it solves. If this be fraud, all money is fraud.

Quote

Asking a bank CEO what he thinks of bitcoin is like asking the head of the post office what he thinks of e-mail.

Dimon compared bitcoin to tulips, which is accurate, though not in the way he intended. What he failed to realize is that people were not paying for single flowers, but for the entire breeding stock -- or a significant portion of it -- of popular new tulip varieties. People have continued to pay higher inflation-adjusted prices for new tulip and lily bulbs to this day.

Dimon went on to claim that governments would suppress bitcoin because they like to control their own monetary policy. This is a strange objection. It seems to assume bitcoin will increase dramatically in value, because it would have to in order to be significant in global money supply.

A better reason for governments to suppress cryptocurrencies is that they make it easier for people to evade taxes and regulations. Many of the advantages of a cryptocurrency from a user’s standpoint are disadvantages to people who want to control users. Cash is a far better tool for evasion, and no government has yet outlawed cash -- or even stopped printing it. The most financially repressive governments have not taken effective action against cryptocurrencies. Any efforts to suppress simultaneously make cryptocurrencies more valuable.

Bitcoin values may well collapse the way tulip futures did, either on their own or due to government efforts. But the problems cryptocurrencies address will not disappear with that collapse. People will continue to pursue technological innovations to improve financial services. The eventual winners may be traditional financial institutions that innovate or new entrants. But it’s a safe bet they will not be financial institutions that fire employees who take bitcoin seriously and ridicule customers who try to help themselves without waiting for JPMorgan to take notice of their problems.

https://www.bloomberg.com/view/articles/2017-09-18/what-jamie-dimon-got-wrong-about-bitcoin-and-tulips

Topic: What Jamie Dimon Got Wrong About Bitcoin and Tulips (Read 274 times)