The Guardian and a bunch of other papers and news outlets have ran a story today about the statements issued by Jamie Dimon, CEO of JP Morgan, at some investor conference. What he has said was more of the usual anti-crypto drivel but because he is the current JP Morgan CEO, many will listen, and, as a result, the entire crypto market has been in deep red today. BTC/USD alone went down by 200. I don't mind, however, because I'm in this for the long haul and I've been thinking that cryptocurrencies have been racking up value a little too fast. We're in a bubble currently and have been many times before. I predicted a major correction in the summer but the market took everyone by surprise and went back on a tear after mid-July. I'm actually wishing for Bitcoin and other cryptocurrencies "to blow up" and enter a multi-year bear market. I would like to keep buying more while the price is still reasonable. I have a very bullish long-term view of cryptocurrencies because 1) everything is increasingly becoming digitalized, 2) many governments are trying to phase out cash but 3) there will always be demand for cash. Hence, there will be much demand for digital cash, which is what cryptocurrencies are.
As for governments trying to outlaw decentralized digital money, that will not work in the long term as there are 200 sovereign governments in the world and there will always be those who seek to make use of and profit from decentralized digital money. The entire cryptocurrency market is worth a minuscule $150B. Governments themselves are nothing but a remnant of our dark, violence-filled past and a primitive solution coordination problems in a low-trust environment. In cryptography and proliferation of computers, there is finally a trustless solution other than coercion to coordination problems. By dramatically lowering costs, decentralized autonomous organizations can potentially replace violence (=government) in many cases as the superior alternative. Governments are not likely to go away any time soon but they will become less relevant.