For many months now, the CEO of JPMorgan Chase, Jamie Dimon has been going around slamming crypto in general. At one point, he compared it to tulip bulbs and said that it was destined to fail. However, after a few months, he changed his mind and no longer thinks bitcoin is a scam. However, he has made it clear that he does not intend to invest in crypto.
It would appear his sudden change in mindset was because of a study which was done by JPMorgan Chase. The study is a 71-page pamphlet, which apparently contains everything you need to know about crypto. It has been dubbed the bitcoin Bible and appears to have played a role in Dimon changing his mind. The report is quite detailed, and it examines every conceivable aspect of crypto.
The report was released on Monday, and it talks about everything there is to crypto including the technology, the challenges, and the possible applications. According to the report, the rapid rise and sudden falls of the digital currency have forced not just JPMorgan but other industry players as well to take a close look at crypto and understand it.
According to the report, crypto is not likely to go away anytime soon. It was noted that the currency would survive in various forms and among various players who had a desire for more decentralization, anonymity, and peer-to-peer networks. It added that the underlying technology would have the greatest use, especially in areas where the current payment system was slow. In the world today, there are more than 1500 digital currencies with a market cap of slightly above $400 billion.
JPMorgan Bitcoin Bible Decrypting Crypto Guide
According to JPMorgan’s report, the challenge that will face digital currency is competing with fiat currencies. It was noted in the report that digital coins are unlikely to win in a competition between them and government-backed currency. The report noted that “as dollars, euros, and yuan are virtual natural monopolies in their regions and will not easily give up their seigniorage profits.”
Another challenge noted was the continued volatility of digital currencies. Other challenges include the technology limitations, the rising mining costs, and hacking. They will also include regulators who are worried about investor protection and misuse by criminals.
However, Dimon has not completely changed his stance on crypto. He recently blasted the bitcoin at the Institute of International Finance conference. He said that anyone who was stupid enough to buy it should be ready to pay the price one day.
However, he changed his mind a bit in January. During a FOX Business interview, he said that he regretted those remarks and that “blockchain is real.” This report does not appear to have had any effect on the price. In fact, Bitcoin has reached some of its highest prices this week. The rally began on the weekend, and it has slowed down a bit. However, it would appear the report from JPMorgan did not have any negative effect on the Bitcoin markets.