J.P. Morgan CEO Jamie Dimon believes that bitcoin is an unprecedented Ponzi scheme. In his world view, the cryptocurrency is worth nothing. People are merely being sucked into what is essentially the world’s biggest scam. And because Dimon carries significant clout — being the CEO of the world’s most powerful bank would do it — everyone listened, even if they disagreed.
Unfortunately for bitcoin buyers, too many weak-handed folks bought into the Dimon’s pessimistic fairy tale. As we all know by now, bitcoin prices fell to slightly below $3,000 after hitting the record-setting $5,000 mark. At time of writing, the number-one ranked blockchain asset is attempting to build a technial base at the $3,500 level.
Although I admit my bias as a strong proponent of cryptocurrency markets, I firmly believe that we are still in the infancy stages of this once-in-a-lifetime investment. Rather than being a Ponzi scheme, Bitcoin and the concept that it represents will pioneer a new age of financial and economic mores.
Here are two reasons why you should ignore Dimon’s fear-mongering:
Jamie Dimon: The World’s Most Conflicted Party
Jamie Dimon had the biggest conflict of interest when he condemned Bitcoin as a fancy pyramid scheme and con. He’s the CEO of one of the most influential institutions in the world. Many people even accuse him and his underlings of manipulating the gold and silver price. Of course he attacks bitcoin because it represents serious competition to fiat currencies.
Indeed, a time may come in the future where a blockchain system will entirely replace the CEO function. Thus, I don’t find his comments about the cryptocurrency markets genuine. This more sounds like a desperate fool attempting to save his job.
Furthermore, J.P. Morgan is mostly responsible for money velocity through means such as fractional reserve banking. If the U.S. dollar lost credibility due to dramatic integration of bitcoin, the entire fiat-currency system would begin to rip at the seams.
The Revolution, not the Rarity
How did the tulip-mania bubble begin and devastatingly end? In a nutshell, people scampered to buy tulips that were thought to be extraordinarily rare. Many were willing to pay outrageous markups before the tulip price went any higher. But when it was later discovered that these tulips weren’t rare at all, the entire market collapsed.
That’s what bitcoin bears assume will happen to all cryptocurrencies. But I have news for them: it’s never going to happen!
Bitcoin is rare. Supply is limited to only 21 million coins. But rarity only makes up one component of the picture. The more critical point is that Bitcoin and its underlying blockchain technology has the potential to uproot hegemonic control of the financial system, and provide the medium for truly free global markets.
People buy bitcoin not just for its rarity, but for its proven ability to change the world!
https://crushthestreet.com/articles/breaking-news/bitcoin-buyers-focus-revolution-rarity
