Well known investors and a long street of the Wall Street Elite have been known to call Bitcoin a fraud and a “joke”. This has included Warren Buffet, considered by many finance enthusiasts as the world’s greatest investor. He used the adjectives “joke” and a “mirage” when asked for his thoughts around the popularity of the currency.
JP Morgan Chase CE Jamie Dimon has joined this bandwagon even going so far as to vow that he will fire any trader who touched the stuff(cryptocurrency) “in a second”.
Such concerns have not been limited to bankers and well known people in the market. They have also been shared by government regulators around the world who are quite terrified by the wild movements in price for Bitcoin, Ethereum and many of the other cryptocurrencies.
“The irony about Jamie Dimon’s comments is that JPMorgan Chase is one of the most active firms on Wall Street in developing distributed ledger technologies, which are based on the same general approach as Bitcoin,” said Kevin Werbach, an associate professor of legal studies and business ethics at the University of Pennsylvania’s Wharton School of Business, according to CBSNews.
— I am Nomad (@IamNomad) September 15, 2017
However, in a very surprising move, JP Morgan purchased a large block of Bitcoins after the CEO’s harsh criticisms. The twitter user ‘I am Nomad’ posted the tweet including a screenshot of the BTC chart where JP Morgan was circled. The growing mainstream financial acceptance of the cryptocurrency would indicate that the predictions of Jamie Dimon and other bears may not be sound.
There are still some legitimate questions and doubts that would have been raised by Jamie Dimon and others in the market. We know that there are more cryptocurrencies than Bitcoin in usage. CoinMarketCap lists more than 1000 different types. Many of those are worth fractions of a penny and lack enough interest to be sustained. Bitcoin, which was invented in 2008 is the largest by far with One of the common elements in historical bubbles is that they include something that’s new or novel. Bitcoin has a little bit of that novelty flavour which could hint towards a potential bubble.
It seems that Jamie Dimon and others with his views might have scared the speculators who don’t really understand the technology behind Bitcoin. As a deeper understanding of what Bitcoin is and how it works spreads, the market will recover. This has been proved several times this past year.