Last night JPMorgan Chase CEO Jamie Dimon took a shot at bitcoin, saying the cryptocurrency “is a fraud.”
Here’s the article: JPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up
In the same time, people from the tech world are saying that “Bankers’ mistrust of bitcoin is still the greatest argument for it.”
Furthermore, Financial Times is posting graphs with a bubble forming pattern overlaying the Bitcoin price
Bitcoin and crypto currencies is a hot topic right now. Most media outlets have to say something about the subject. That’s fine but how important Bitcoin really is?
Traditional asset managers for now cannot include in their portfolios cryptocurrencies. Bitcoin can rarely be used as a means to pay for goods in transactions. In most cases when vendors accept bitcoin as a payment they’re really using a third party service that deals with the bitcoin and pays the vendor in hard currency.
Most of the action is provided by individual investors. We can ask ourselves how many people we now that have some bitcoin? Our guess – none. Situation may differ if you’re from thech industry. So is it really relevant?
To sum up, we view bitcoin as a new hot topic and probably a bubble, though our only strong position is that we don’t consider it for investments.
Note: Blockchain as a technology is a different topic that may prove to be very useful.