Bitcoin is a fraud that will blow up. Jamie Dimon
Recently we heard a lot of news about Bitcoin being a fraud or not being worth anything. Well, it could be true, but, is it?
CEO of JP Morgan said at an investment conference that the digital currency is a “fraud” and that his firm would right away fire whoever traded it.
The main reason for calling Bitcoin a fraud stems from comparing it to cash, which seems foolish. Let’s be clear here; Bitcoin is not cash; it’s not a currency but a store of value which you can use to trade. Cash is a store of value as well but backed by government and country. Long story short, Bitcoin and cash are both stores of value, but it does not seem to be legit to compare them to one another.
Not so long ago people were using animals or natural materials for trade. Today, we use physical metals as a store of value (for example gold or silver). Would you say that gold is a fraud? No, you wouldn’t, but Bitcoin you call a fraud.
Let’s compare Bitcoin and gold. The maximum number of Bitcoins that will ever exist is 21M, you have a defined maximum, so Bitcoin won’t decrease in value just because someone created a few millions more. It’s not possible to do that. How much gold exists in the world? Dunno, no one knows. We are aware of how much of gold we get from Earth, but no one knows how much will be found in upcoming years. What if someone finds 1/4 more gold in some part of the world? Would the result of that be a drop in the price of gold? Why not, since from that moment there would be so much more gold in the world, it’s logical that the price of gold would drop if that happens.
So, my question here is: “What is more likely to happen?” Maybe I am wrong, but I believe that finding more gold is more likely to occur.
An argument that Bitcoin will never reach mass adoption because of limits regarding where you can use it in the real world is often mentioned. Yes, that is true. Bitcoin will probably never be used as much as dollars, and it doesn’t have to be. While you can exchange Bitcoin for fiat currency, everything should be okay. You can buy Bitcoin for saving and get your dollars back at any moment, you don’t need to use it instead of fiat currency.
In fact, today it’s not used for payment transactions, it’s used as a store of value. Better store of value than anything else. For example, if you hold your money in fiat currency in the bank you will lose your money from year to year. Fiat money is losing value with time, and inflation does its job here. So, at the end of the year, you get less than you had a year before.
If we want to call something a scam, it should have hidden information that no one knows. Bitcoin is open sourced, which means that everyone can see all the details in the source code. If you look at the code, you will see that even the founder cannot generate more Bitcoins if he decides to do that. The reason behind it is that it’s based on trust, and 51% of miners should be on his side to do that.
The public thinks that Bitcoin is helping criminals on the black market (silk road for example). Yea, it’s used on the black market, but do you know what is better for that? Cash, cash is the king and with cash transactions are private. All Bitcoin transactions are visible to everyone, and if some institution puts pressure on some exchange, they will probably give your identity information to the police or someone. Every transaction can be tracked, and someone will find you if they need to. With cash that is not possible. Long story short, cash is more prevalent on the black market, and it’s better than Bitcoin.
Crypto market cap
On the picture above you can see that the whole crypto market has a capitalization of around $140 billions. We can discuss here the most popular news, that Bitcoin and the whole crypto market is a bubble. Do you remember how much was the market capitalization for dot.net companies at the time when dot net bubble happened? It was $2.9 trillions! So a very large capital created a bubble 18 years ago, crypto market is just in an early stage. If Bitcoin is a bubble it will fail in a few years, but not yet. It needs more capital before that happens.
Public thinks that Bitcoin is blockchain and everything about crypto is only Bitcoin. It’s not; blockchain is an amazing technology that will change the world in many ways. It just started and it’s in an early stage, but the blockchain time will come. Bitcoin is only the most popular crypto currency, it’s on blockchain, but there are many more impressive projects on blockchain that have a much wider application in the real world. I will list just a few of them that impress me at this moment and I am sure more of them will come soon.
TenX is a debit/credit card that makes the transactions easier for cryptocurrency holders and it removes the need for a bank. Your cryptocurrencies are on a wallet and by simply using the card TenX will instantly convert crypto to your native currency.
Without their debit card you will run into a problem if you want to spend your crypto in a traditional environment. To be able to use it you firstly have to sell it off and convert it back to fiat. TenX solves this problem and makes crypto payments easier.
The Cryptocurrency Improvement Fund will offer numerous services that should provide the support to business adapting to cryptocurrencies. Services will include training & education as well as tracking dashboards, eCommerce integration, CRM integration and a wide range of custom branded “wallet” applications. The aim is to help businesses adopt the desired cryptocurrency and reward them for doing so.
Casinos have been around for centuries, yet they have retained their physical orientation allowing little room for technology. Also, there has been a significant increase in online casinos but no one has yet succeeded in marrying the two, till now. Providence is more like a hybrid casino that seeks to harmonize online gambling within the physical casino setting by leveraging the blockchain technology. In fact, Providence is the first cashless casino in the world. This casino will run a cashless system accepting cryptocurrencies transactions only. The casino will manage to do this by integrating the digital assets with the blockchain technology.
Blockchain enables a new way for people who do not know or trust each other to exchange or create a record in a safe way. It’s operated by a group of individuals together, and no single entity controls the system or its data.
Bitcoin & blockchain cannot be turned off. While there are some people that would trade it, it will stay. Nothing can stop it, only community can turn it off by deciding not to use it anymore, but we have an increase in trading on this specific market and that moment will not come soon.