Dec 18, · Institutional Bitcoin is Here to Stay. It’s official. The institutional move into bitcoin is underway. Large multi-billion dollar firms are now coming into the market. And I think it’s just getting started. Even JP Morgan analysts were impressed by the MassMutual news, writing the following (emphasis mine). An internal report on cryptocurrencies by JP Morgan has surprised many observers as it flies in the face of widespread perceptions of the financial powerhouse’s attitude towards virtual currencies. More than a just grudging acknowledgment of digital coins’ presence in the here and now, it seems almost positive in its summary and future predictions. Jun 18, · JP Morgan Says Bitcoin Is Here To Stay, For These Reasons By Anna Golubova June 18, (Kitco News) The COVID market selloff in mid-March was bitcoin’s first real crash test and the cryptocurrency successfully passed it, according to the latest JPMorgan’s report, which says that bitcoin is here to stay.
Jp morgan bitcoin here to stayInstitutional Bitcoin is Here to Stay - Early Investing
The institutional move into bitcoin is underway. Large multi-billion dollar firms are now coming into the market. MassMutual is one of the largest insurers in the U. It has 5 million customers and has been around since Why is an insurance company buying bitcoin? Insurance companies like MassMutual have huge investment portfolios to pay out future claims with. Typically, bonds make up a large portion of these portfolios. So these guys need alternative investments. This follows other notable new large buyers such as Square and Microstrategy more on that here.
And more big firms are getting into the crypto custody business. Banking services giant Standard Chartered is launching a crypto custody service. It will be one of dozens — or possibly hundreds — of firms catering to institutional crypto buyers.
Runaway debt. Unsound fiscal policy. Although JP Morgan was by no means the most leveraged of the banks, it still took bailout money, and, as its CEO, Dimon and bitcoin will inevitably be philosophically opposed. His utter faith in the US dollar sounds rather like the boss of a major record label talking up CDs a year before the iPod was brought to market.
Actually, bitcoin is perhaps the most transparent system of money ever invented. Every transaction that has ever taken place, no matter how big or small, is recorded on a database, known as the blockchain, which is shared on hundreds of computers around the world and visible to all. Every entry is permanent. The whole system is built, not on fraud, but on mathematical proof. However, there are many fraudulent operators at work in the bitcoin space. Bitcoin is used for trading illegal goods; indeed, it has actually facilitated dark markets.
One bitcoin exchange, Mt Gox, was hacked and had some , coins stolen, making it one of the greatest heists in history. Today fortunes are being raised in minutes via ICOs initial coin offerings — the crypto equivalent of an IPO for ventures that will not go anywhere beyond yachts and cocaine. So there is something to what he says, even if the system itself is inherently anti-fraudulent. Dimon declares that we will use the technology — blockchain technology — but that bitcoin will be shut down.
One comes with the other. There is no central point of failure. But given the multibillion-dollar investment that has gone in, the US government would have the most almighty legal fight on its hands if it tries to make bitcoin illegal. Finally, Dimon declares bitcoin is a bubble. You need to define what a bubble is. Tulips were a bubble built on very little.
The dotcom frenzy was a bubble in , but the story was right: the internet did change the way we do things. Railways were a bubble in the 19th century: but rail changed the way we travel. In both cases, the bubbles meant the infrastructure was built. Something similar is happening now.