Recently the China had brought an enormous FUD into the crypto space when it announced that it is going to ban cryptocurrencies and ICO's. Along with China's Announcement, at the same time, Mr. Jamie Dimon statement also came called Bitcoin a 'Fraud'. The combined effect of both these statement had made the market to fall exponentially.
Now, for few days it has started to recover and currently the total market capitalisation stands at $143.29 Billion which is quite satisfactory amount as compared to the market valuation when it fell recently.
Now, again JP Morgan Chase has come up with something to diminish the value of Bitcoin.
This time the head of Forex, commodities and international rates research in JP Morgan Chase, Mr. John Normand called Bitcoin an 'Air Miles' scheme, correcting the statements of people calling it a 'Ponzi Scheme' before.
Let's understand first, what an 'Air Miles' scheme is ?
Air Miles is a loyalty program started in Canada, Middle East and Spain. Basically, the points will be received on every purchase by the user, whether online or offline. Purchase will be of Air Tickets or something related to Air Lines. Those points accumulated will be redeemed against flights. Basically one get discount and that discount could be write off against further bookings.
This scheme is known by many names in various countries and come under the varying governing body.
This scheme developed back then, in order to attract more flight booking and increase business to the airlines.
Now, Mr. Normand says that Bitcoin is 'Air Miles' scheme.
But I wonder, from which angle?
What points do a person get while purchasing a Bitcoin. Of course, if it increase in value, then a profit can be booked but certainly the 'Air Miles' should not be word for Bitcoin.
He further adds, there are lots of goods and services can be purchased with the air miles points and so can with Bitcoin.
According to Mr. Normand, one can buy anything with Bitcoin in any part of the World as it is Globally accepted (almost). Same we can do with Air Miles points.
Mr. Normand actually trying to continue the FUD which was somehow got silent recently. He said, calling Bitcoin a 'Ponzi Scheme' is not right. Because Bitcoin is not a fraud scheme like most ponzi schemes are. Rather it is a Air Miles scheme which can be used for free rewards by 'buying it today and spend it later perspective'.
So, this move from Mr.Normand should be called as another attempt to diminish the Bitcoin's value by calling it a FUD.
Well, this seems to be, but market is not caring about his opinion anymore as the Bitcoin value stands strong at $4250 right now.
I guess the days of FUD is over but still one should remain cautious while making an investment in the crypto space as the marker is highly volatile and uncertain.
Keep your investments safe.
Thanks for reading !
