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- by David Vendrell Valls
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Highly Recommended: Bitcoin at crossroads after shedding more than $27 billion i... (marketwatch.com)Did Jamie Dimon obliterate bitcoin’s buzz?
Bitcoin and other digital currencies have been getting absolutely toasted in recent trading, with some wondering if withering criticism from Wall Street heavyweights, like J.P. Morgan Chase’s JPM, -0.20% CEO, and growing regulatory scrutiny in China have finally combined to exact a punishing, and lasting, toll on one of the most bubblicious segments of finance.
On Thursday, the value of a single bitcoin BTCUSD, -2.40% was down about 14% at $3,349, compared with around $5,000 in early September and representing a roughly $27 billion loss of market value in the world’s No. 1 cryptocurrency, according to digital-currency site Coinmarketcap.com.
Ether tokens, the second-most popular digital currency, were down 17% on the day at $230 in recent action. That equates to a loss of more than $16 billion in total value for the currency running on the Ethereum blockchain.
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Bitcoin USD Nov 16 Jan 17Mar 17May 17Jul 17 Sep 17US: BTCUSD01,0002,0003,0004,0005,0006,000
Still, bitcoin’s rise has been dazzling, rallying some 250% so far in 2017. By comparison, the Dow Jones Industrial Average DJIA, +0.20% and the S&P 500 index SPX, -0.11% are each up by nearly 12% this year, sparking a litany of pronouncements that U.S. equities are too rich.
At least part of the drop in bitcoin is due to excoriating comments made by Dimon on Tuesday, who referred to it as “a fraud”, among other indictments, at a banking conference. He reiterated those remarks at a separate conference later that day.
On Wednesday, prominent investor and market pundit Mohamed El-Erian, chief economic adviser at Allianz Global Investors, added further fuel to bitcoin’s bearish fire, making the case that bitcoin might lose a third or half its value.
“The current pricing assume massive adoption, and I don’t think governments will allow the amount of adoption that’s currently priced in,” he said on CNBC Wednesday morning in New YorkJamie Dimon Calls Bitcoin 'a Fraud
Bitcoin bulls have been up in arms about the onslaught of negative comments. But talk of a bubble and the increased attention on digital currencies, and the underlying blockchain technology, are drawing may signify that the cyberunits are at an important crossroads.
That could determine whether bitcoin, or some other cryptocurrency becomes a mainstream instrument, challenging fiat currencies like the U.S. dollar DXY, -0.04% or just a case study in irrational exuberance.“Dimon says that bitcoin is a fraud because all of the value is being driven by speculation and not utility. There is a grain of truth to that.
Bitcoin has not yet seen wide adoption for day-to-day transactions, but the number of transactions occurring across the globe has been rising, particularly in 2017,” said Perry Woodin, CEO of Node 40, a blockchain governance company.Indeed, bitcoin is making headway across the globe, from the U.S. to Japan and China.
But of late, recent regulatory rumblings out of China have appeared to set the stage for the current pullback in bitcoin and the broader crypto market.
According to The Wall Street Journal, Chinese regulators are planning to shutdown bitcoin exchanges. Although some in the industry have challenged the veracity of those reports, China is a major hub for bitcoin activity, representing about 20% of bitcoin mining and trade, said Charles Hayter, co-founder of Crypto Compare in an interview.
On Thursday, one exchange, BTCC, said it would stop all trading as of Sept. 30.China is cracking down on illicit uses of digital currencies and has also is monitoring so-called initial currency offerings, or fundraising tied to digital-currency ventures that has recently supplanted traditional, early-stage venture investing in 2017.
Read: What is an ICO?
“There has been a free fall of late and it is making everybody quite scared,” Hayter said. He said he welcomes increased regulation from places like the U.S. and China, which may help to legitimize a currency that is in its infancy. But questions abound as to the role China, if any, will play in bitcoin’s outlook.
“China is always an enigma wrapped in an enigma so you don’t always see what’s happening,” he said.About Dimon’s comments Hayter said, “Bitcoin likes to view that as a ‘poor me excuse.’” Meaning, banks may view digital currencies as a rival to their business models of moving money for a fee.
Here’s what Elizabeth Stark, CEO and co-founder of Lightning Labs, a blockchain-related company, had to say about Dimon:
“I think it’s quite shortsighted to be so disparaging about this emerging industry, especially without a core understanding,” Hayter also said.
Bharath Rao, founder and chief executive of digital currency trading platform Leverj, said what many critics fail to understand about cryptocurrencies is their potential to be revolutionary, which some have equated to the internet in its early stages, around the early 1980s or 1990s, or even the industrial revolution.
“Bitcoin is a technology breakthrough like the steam engine was a couple of hundred years ago. Those that call it a fraud will simply be run over by it,” Rao said.
“There are a number of people who hold most of their assets in cryptocurrency, particularly bitcoin because they are convinced it is the future. This number is growing by the day as people who taste financial freedom are unlikely to want to go back to servitude,” he said.It is also important to point out that bitcoin has been facing its own growing pains that led to some summer hiccups.
So-called Bitcoin Cash, which erupted out of the original bitcoin early last month is the result of a faction of bitcoin developers’ demands for a version of that allows virtual miners, which support the currency, to more rapidly process transactions in larger units known as blocks. The original bitcoin also went through an upgrade that increased its processing power without resulting in another currency split.
Whether bitcoin or its successor is the future remains to be seen. However, advocates for bitcoin point to a number of factors that make it a promising enterprise. The fact that it is decentralized from central banks or governments is one such factor. That means individuals can conduct transactions without an intermediary.
Another bulls point to is the blockchain, or the software that underpins every digital currency.
Check out: Bitcoin is now the most crowded trade around: Bank of America Merrill Lynch
Put simply, blockchain is a digital ledger, or record, that has seen its utility grow within Wall Street and at institutions like Jamie Dimon’s J.P. Morgan.
The bank has been testing blockchain uses to combat the rise of cryptos.
That recognition from the more staid financial community has heartened many bitcoin investors.“Jamie has far more experience in the financial industry than someone such as myself, but if you have a look at look at the developers in bitcoin…this smells exactly like the early internet,” said Iqbal Gandham, U.K. managing director at eToro, a trading platform.
“This is not a Facebook, this is not a Snapchat. This is something bigger,” Gandham said, referring to social-media giant Facebook Inc. FB, -1.21% which boasts a market value of more than $500 billion, and Snapchat, whose parent company, Snap Inc.SNAP, -0.80% recently became a publicly traded company.
Sometimes it’s hard to tell true innovation from fake. In 1903, the president of Michigan Savings Bank is said to have told Horace Rackham, an early stockholder in Ford, that the “horse is here to stay but the automobile is only a novelty.
”All that said, what happens to bitcoin is anyone’s guess. And it will be marked by bouts of intense volatility, and maybe pain given the tendency of digital currencies to swing wildly.
The question may be: Can investors stomach the roller-coaster ride?
“I think with any market where the liquidity is low, there is always going to be volatility,” Gandham said.
Discover more stories like this on Marcketwatch here: http://www.marketwatch.com/story/bitcoin-at-crossroads-after-shedding-nearly-20-billion-in-value-201...-
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Francisco Gimeno - BC Analyst A serious and balanced opinion on what is going on on bit coin an other crypto this week. I just want to take this line from it: "...people who taste financial freedom are unlikely to go back to servitude". Read it and you will know it says that.- 30 3 votes
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Highly Recommended: BitcoinObituaries.com | Bitcoin Declared Dead 140+ Times and... (99bitcoins.com)
Bitcoin has died 160 times
According to these reports going all the way back to 2013, Bitcoin just keeps on rising in spite of all the influencers who have been trying to kill it!
Obituary Stats | Submit Obituary | Obituary Generator
SEPTEMBER 12, 2017
“JPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up” – CNBC | $4,367.12
Jamie Dimon: Governments look at bitcoin as a novelty 9 Hours Ago | 01:45 JPMorgan Chase CEO Jamie Dimon took a shot…
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SEPTEMBER 9, 2017
“Why China Crushed Bitcoin” – Forbes | $4,450.15
Bitcoin’s buzz is gone, for now. It was crushed by the heavy-handed intervention of the Chinese government, which is cooling…
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SEPTEMBER 7, 2017
“Bitcoin, Ether and other cryptocurrencies may be seeing the beginning of the end” – MarketWatch | $4,669.66
The sudden Chinese crackdown on the virtual coin fundraising of bitcoin and other cryptocurrencies that caused the plunge is either the…
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SEPTEMBER 5, 2017
“Bitcoin’s price hit $5,000 last week. It’s still a dumb investment” – LATimes | $4,363.02
So here’s my short answer. No, I don’t feel silly, but vindicated. If the recent run-up in bitcoin price proves…
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SEPTEMBER 5, 2017“Where Money Goes to Die” – AlephBlog | $4,363.02
I’ve written about Bitcoin before. It has three main weaknesses: No intrinsic value — can’t be used of themselves to produce something else.…
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SEPTEMBER 4, 2017
“The Death Of Bitcoin And The Future Of Cryptocurrencies” – Seeking Alpha | $4,576.90
So far, other than isolated situations, cryptocurrencies have not been used to facilitate commerce in the Mom and Pop World.…
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AUGUST 25, 2017
“Here’s How Bitcoin Will Collapse” – TheStreet | $4,205.85
Bitcoin is a gigantic bubble ready to explode, according to Euro Pacific Capital CEO Peter Schiff. While Schiff explained to…
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AUGUST 23, 2017
“Big Governments Will Crush Bitcoin, But Won’t Kill It” – Forbes | $4,189.64
Sadly for Bitcoin enthusiasts, the day Bitcoin replaces national currencies will never come. Big governments have the power to crush Bitcoin before Bitcoin crushes…
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AUGUST 21, 2017
“Bitcoin in an Illusionary Age” – Antonius Aquinas | $4,127.48
Now enter crypto currencies. Not only will they never become money – a general medium of exchange – as gold…
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AUGUST 17, 2017
“Bitcoin Bear Peter Schiff Doubles Down: Even at $4,000 It’s Still a ‘Bubble'” – Coindesk | $4,461.53
There’s certainly a lot of bullishness about bitcoin and cryptocurrency, and that’s the case with bubbles in general. The psychology…
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AUGUST 15, 2017
“A Bitcoin Is Worth $4,000–Why You Probably Should Not Own One” – Forbes | $4,179.97
This is why almost none of us should own Bitcoins. Bitcoin value has multiple weaknesses. Someone could hack the blockchain, create…
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AUGUST 15, 2017
“The Death of Bitcoin” – TradingView | $4,179.97
Ladies and Gentlemen, i present the obvious Death of Bitcoin. After the next smooth journey to moon, or the next journey to…
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AUGUST 14, 2017
“Gartman: Avoid the bitcoin boom” – CNBC | $4,046.99
How can you buy a house, how can buy a car, how can you buy Starbucks with bitcoin when price…
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AUGUST 13, 2017
“Bitcoin Just Surged Over $4000 and Is Near Biggest Financial Crash in 400 Years” – The Street | $4061.54
Some have likened the cryptocurrency market to the Internet sector in 1999. While there was little doubt then, and clear…
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AUGUST 10, 2017
“Bitcoin will fail – and change the world” – Welt | $3,348.29
…this ultimately proves that the digital coins have no future. Bitcoin will fail. This currency will not survive because it has long…
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AUGUST 10, 2017
“All This Bitcoin Stuff Is Fake” – Splinter | $3,348.29
All these imaginary “digital currencies” are just made up fake things…. What is Bitcoin? Nobody knows. I do not mean…
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AUGUST 10, 2017
“Cryptocurrency – its status as money” – GoldMoney | $3,348.29
While cryptocurrencies can claim a free-market origin, and their creators might think for that reason they are superior to state…
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AUGUST 10, 2017
“Why Bitcoin Is Worthless” – Seeking Alpha | $3348.29
Bitcoin is worthless…Bitcoin can never be a currency under its current model… Bitcoin is not special, nor does it serve…
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AUGUST 7, 2017
“BTC is dead – Long live BTC” – Bitcoin and The Blockchain | $3375.8
If you have not sold your BCH you will not be affected as BCH will become the new BTC. For…
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JULY 27, 2017
“Billionaire investor Howard Marks says cryptocurrencies ‘aren’t real'” – Business Insider | $2533.79
Howard Marks, billionaire investor and founder of Oaktree Capital Management is adamant about his stance on cryptocurrencies like bitcoin, Ether…
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The CEO of JP Morgan just called one of the best-performing currencies of the past decade “a fraud” and said he’d fire employees for trading it.
Jamie Dimon, JP Morgan’s CEO and one of the most prominent bank chiefs on the planet, believes bitcoin is doomed. At a gathering of investors hosted by Barclays in New York, Dimon referred to bitcoin as a “fraud” and told a group of professional investors what would happen to JP Morgan traders taking bitcoin action: “I’d fire them in a second.
For two reasons: it’s against our rules, and they’re stupid. And both are dangerous.”This statement is in stark contrast to a tsunami of interest by traditional financial institutions, such as Goldman Sachs, in the cryptospace this year. Even cybersecurity professionals like John McAfee, who is not a financial expert but knows a thing or two about computers and technology, are becoming true believers.
Moreover, the blockchain that powers bitcoin is predictable and has been running since 2009. Known issues with the cryptocurrency were addressed in the SegWit fork which created two versions of the coin. This isn’t the sign of a dying currency.
This is a sign that this ecosystem is self-regulating, solves its own problems, and is growing. Reportedly, Dimon further told the conference of investors that bitcoin “won’t end well,” that it’s “worse than tulip bulbs,” and that “someone’s going to get killed.” This is rather strong language coming from a man whose company was integral in forming a cryptocurrency business consortium.
So what do Dimon’s comments mean? Is he saying that it’s easier conduct illicit activity with cryptocurrency than cash? Is this just a case of a banker appeasing his buddies during a high powered lunch, or was Dimon actually trying to caution investors against cryptocurrencies? Jamie Dimon doesn’t make money off of bitcoin.
The majority of investors Dimon was addressing likely don’t either. They make their money off of fiat, so Dimon’s remarks could just be posturing in front of his contemporaries. Phrases like, “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars,” expose his naiveté.
Places like Venezuela use cryptocurrencies not because they are criminals, but because their fiat currencies have failed them alongside their governments. So in turn, those people adopt crypto because it is stable and reliable. If sanctions are placed on your country, again, cryptocurrencies are a viable alternative and don’t care if you are good or evil.
People care about politics and the differences between us. Crypto’s don’t. Bloomberg reports that Dimon further differentiated between bitcoin and blockchain technology, saying that blockchain could be useful. This is comforting to hear from Dimon, considering his company has actually developed its own blockchain.
In fact, JP Morgan’s blockchain lead had her own amusing reaction to the inflammatory statements:
Upon greater reflection, Dimon may realize that blockchain technology could not exist without cryptocurrencies like bitcoin or Ether. Cryptocurrencies like bitcoin are actually some of the best performing currencies ever.
So why does Dimon despise them?Simple. Dimon told the gathering of investors “someone’s going to get killed and then the government’s going to come down. You just saw in China, governments like to control their money supply.
”Maybe what Jamie Dimon is hoping for is that the government will come down on cryptocurrencies and save him – just like they did in 2008 when his company took $12billion in US taxpayer bailout money.
If bitcoin fails, how much will we have to pay?
Discover more stories like this on Ethnews here: https://www.ethnews.com/jp-morgan-ceo-jamie-dimon-decries-bitcoin-to-banker-buddies
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Jose Ojeda Portillo Adviser at Blockchain Company / Water Health Environment / Biosphere University I like this sentence: << ”Maybe what Jamie Dimon is hoping for is that the government will come down on cryptocurrencies and save him – just like they did in 2008 when his company took $12billion in US taxpayer bailout money. >> :-)
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In the most recent initiative to promote its acceptance of Blockchain technology, one of leading US investment banking institutions, Goldman Sachs, has set up a microsite dedicated to explaining the benefits of Blockchain technology.
It was then followed by a tweet on July 1 which clearly sends a message of the banking giant finally embracing the same technology that powers Bitcoin.
The page was created for the purpose of giving people an idea of how Blockchain technology is used and how cryptocurrencies like Bitcoin run on these programs.One of their key messages include Blockchain technology’s security feature:Blockchain is designed to store information in a way that makes it virtually impossible to add, remove or change data without being detected by other users.Goldman Sachs on Blockchain-based projects
Although the financial sector has not really been very keen on cryptocurrencies for quite a long time, Goldman Sachs has been involved in some Blockchain technology based companies like Circle and even Digital Asset Holdings.While the banking giant has been helping startups such as these, it is just now that they have formally announced their acceptance of Blockchain technology.Blockchain's future in finance sector
Despite its price volatility, there is no doubt that Blockchain technology is making waves in various industries, including finance.In fact, a report by Accenture shows the cost data of eight of the world’s largest investment banks states that Blockchain technology could help reduce the costs of investment banks by as much as $12 bln per annum by the time 2025 comes.
This is a big thing for investment banks because not only will this new technology help make the transaction of data safer and more secure, but it will also help drive the costs down.
The foray of mainstream banking, financial and technology giants into the cryptocurrency sector showcases the promising future of Blockchain technology and its applications in various industry segments.The initial wave was caused due to... continue reading: https://cointelegraph.com/news/goldman-sachs-finally-recognizes-the-power-of-blockchain-technology-
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