Yesterday one of the top CEO's in the world came out and pretty much hammered bitcoin. Every news blog raced it across the headlines. Jamie Dimon Call Bitcoin a "fraud", related it to the tulipomania where tulip contracts bubbled and popped in the 1600's, and warned that "Someone is going to get killed". Seriuosly? Sounds like strong words. Why when many on wallstreet are investing in crypto currencies, is Jamie coming out and hammering it.
Bitcoin is a disruptor, and disruption is good for the advancement of society. Think of how Amazon disrupted the retail space and created value for consumers. We have entered what is known as the "Internet of Value". That is correct, things have become cheaper because of the Internet. From AirBnb to Walmart, these disruptors have provided value for consumers but at the cost of others. At first it was scary, but this disruption results in prosperity. Think about it. In the 70's & 80's the only way to buy stock was to go down to your broker, in person and hand him a check. You didn't get the best price, you just got the price you got, and you paid $60-$100 to the broker to do it. The inconvience and cost for the consumer. The internet disrupted that, and the banks had to adapt.
But Bitcoin disrupts in more than just one way, it decentralizes banking services, all of them, not just buying stocks. 2014 Fortune published an article by Trond Undheim and I pulled out this quote.
"Why are bankers afraid of Bitcoin’s impact? Easy, it will lead to ripples across the financial sector, it will create new winners and losers, and it will likely decentralize banking services and create micro markets to an extent not seen since the advances of the barter economy and the market economy combined. In fact, this is what the Internet of Value is all about—erasing the distinction between bartering, money and service exchange in any market. Once each potential good has a financially tradable and storable equivalent, “a bitcoin,” if you will, trade will explode in a myriad of directions impossible to predict by current algorithms. Intermediaries will come and go, and the end points of exchange nodes will become more important. To many bankers, this is a scary thought. To everyone else it is likely quite liberating. Clearly, there must be regulation. Without regulation, markets are unstable . However, countries that over-regulate a disruptive innovation in its infancy will only lose out on the first waves of that innovation. Several countries seem to be heading that way, and the US is now in the front seat of that wagon. What a pity. The urge to cripple crypto based currencies is futile."
Yesterday we seen the first of many Bankers to scream foul, trying to discrediting Cryptos, even claiming people will be killed to create fear in the public, but this is larger than that. The key word above is "bartering". This is the whole reason fiat, gold coins, etc. China being a leader, has stepped in to regulate, they want to be a leader not a follower.
Prior to fiat, bartering was difficult. If you had cows, and wanted a few chickens you had to barter. But you do not want to trade one cow for a few chickens. Hence the advent of fiat via gold and silver coins. This created the great expansion of trade and made some countries great! But it took hundreds of years for this to evolve and many were skeptical. The Irony China was at the forefront in the 1300's, Europe did not adopt bank notes until the 1600's. I recommend reading the history of fiat and banknotes to further understand.
"Brave New World". We live in a world where cryptos will just about disrupt every aspect of bartering and trade and essentially the banking system as we know it. Jamie just provided validation the change is coming!
Is this happening? Jamie said 3rd quarter revenue will drop 20%. No wonder they are scared, not one headline!
Bitcoin is a disruptor, and disruption is good for the advancement of society. Think of how Amazon disrupted the retail space and created value for consumers. We have entered what is known as the "Internet of Value". That is correct, things have become cheaper because of the Internet. From AirBnb to Walmart, these disruptors have provided value for consumers but at the cost of others. At first it was scary, but this disruption results in prosperity. Think about it. In the 70's & 80's the only way to buy stock was to go down to your broker, in person and hand him a check. You didn't get the best price, you just got the price you got, and you paid $60-$100 to the broker to do it. The inconvience and cost for the consumer. The internet disrupted that, and the banks had to adapt.
But Bitcoin disrupts in more than just one way, it decentralizes banking services, all of them, not just buying stocks. 2014 Fortune published an article by Trond Undheim and I pulled out this quote.
"Why are bankers afraid of Bitcoin’s impact? Easy, it will lead to ripples across the financial sector, it will create new winners and losers, and it will likely decentralize banking services and create micro markets to an extent not seen since the advances of the barter economy and the market economy combined. In fact, this is what the Internet of Value is all about—erasing the distinction between bartering, money and service exchange in any market. Once each potential good has a financially tradable and storable equivalent, “a bitcoin,” if you will, trade will explode in a myriad of directions impossible to predict by current algorithms. Intermediaries will come and go, and the end points of exchange nodes will become more important. To many bankers, this is a scary thought. To everyone else it is likely quite liberating. Clearly, there must be regulation. Without regulation, markets are unstable . However, countries that over-regulate a disruptive innovation in its infancy will only lose out on the first waves of that innovation. Several countries seem to be heading that way, and the US is now in the front seat of that wagon. What a pity. The urge to cripple crypto based currencies is futile."
Yesterday we seen the first of many Bankers to scream foul, trying to discrediting Cryptos, even claiming people will be killed to create fear in the public, but this is larger than that. The key word above is "bartering". This is the whole reason fiat, gold coins, etc. China being a leader, has stepped in to regulate, they want to be a leader not a follower.
Prior to fiat, bartering was difficult. If you had cows, and wanted a few chickens you had to barter. But you do not want to trade one cow for a few chickens. Hence the advent of fiat via gold and silver coins. This created the great expansion of trade and made some countries great! But it took hundreds of years for this to evolve and many were skeptical. The Irony China was at the forefront in the 1300's, Europe did not adopt bank notes until the 1600's. I recommend reading the history of fiat and banknotes to further understand.
"Brave New World". We live in a world where cryptos will just about disrupt every aspect of bartering and trade and essentially the banking system as we know it. Jamie just provided validation the change is coming!
Is this happening? Jamie said 3rd quarter revenue will drop 20%. No wonder they are scared, not one headline!
Note
I want to caution that $3750ish area is the 38.2% retracement and it does not have to go lower for the wave to be complete. We could easily turn around here an head up, but If it breaks through that, we can with certain probability expect a full pullback to the $3000ish level.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.