Connect with us

Cryptocurrencies

Bitcoin Tumbles After Jamie Dimon Calls It A Fraud: “Would Fire Anyone Trading It”

Published

on


Surprised by the sudden air pocket below bitcoin? Curious if this was caused by some new, unconfirmed Chinese crackdown on bitcoin traders, exchanges, and other money launderers?

No, the answer is Jamie Dimon, who in an angry outburst during the same conference in which he preannounced JPM’s 20% trading revenue drop, lashed out at the cryptocurrency, calling it a “fraud” which is “worse than tulip bulbs. It won’t end well”, will “blow up” and “someone is going to get killed.” Oh, and in conclusion, “any trader trading bitcoin” will be “fired for being stupid.

  • DIMON: BITCOIN IS A “FRAUD”; “WORSE THAN TULIP BULBS”
  • DIMON: BITCOIN WILL EVENTUALLY BLOW UP
  • DIMON: BITCOIN WON’T END WELL
  • DIMON: WOULD FIRE ANY TRADER TRADING BITCOIN FOR BEING STUPID

So how does Jamie really feel?

Of course, if “a trader” bought $100,000 of Bitcoin in 2010, they’d be roughly 3x richer than billionaire Jamie, but that’s another story.

What is more surprising, is that bitcoin actually reacted to this angry outburst by the JPM CEO, sliding sharply, and dragging the entire cryptocurrency space with it.

Or perhaps not surprising at all as hundreds of JPM traders quietly liquidated their accounts moments after hearing Dimon’s threat…

Curiously, as Bitcoin sold off, gold finally saw a modest bid:

As for Dimon’s personal vendetta with the digital currency, one twitter commentator said it best:

What is ironic is that this is not the first time Jamie Dimon has lashed out at bitcoin: the last time Dimon slammed bitcoin was November 2015, at the Fortune Global Forum in San Francisco. Here’s what he had to say when asked directly about it by an audience member:

“You’re wasting your time with Bitcoin! Virtual currency, where it’s called a bitcoin vs. a U.S. dollar, that’s going to be stopped,” said Dimon. “No government will ever support a virtual currency that goes around borders and doesn’t have the same controls. It’s not going to happen.”

“Blockchain is like any other technology. If it is cheaper, effective, works, and secure, then we are going to use it. The technology will be used, and it could be used to transport currency, but it will be dollars, not bitcoins.”

For those who “wasted their time” since Dimon’s threat, Bitcoin is up 1,018%.

Free "dummies guide" to trading options

Did you know trading options can actually be safer and more profitable than buying and selling stocks? Video and plain English training guide reveals how to get started tonight. 100% free.

Download now.

Continue Reading

Cryptocurrencies

Doomsday Preppers Are Switching From Gold To Bitcoin

The gold versus Bitcoin debate is complex, nuanced and still in its embryonic stages when put into the perspective of gold’s known 2,700-year use as money versus Bitcoin’s very modest eight-year track record.

Published

on

The gold versus Bitcoin debate is complex, nuanced and still in its embryonic stages when put into the perspective of gold’s known 2,700-year use as money versus Bitcoin’s very modest eight-year track record.

From a pure investment perspective, as the following Bloomberg chart shows, Bitcoin has obviously “wiped the floor” with its esteemed rival and, no doubt, has absorbed a considerable volume of funds that otherwise might have found their way into gold investments.



One subset of gold investors, which is both over-stated and over-ridiculed in the mainstream media, is the “preppers”, or those preparing for a catastrophic disaster to occur in the future by stockpiling food, ammunition and “durable” methods of storing their wealth, etc. We clarify the term “preppers” because it is not common parlance in many European countries. While some allocation in gold was basically “de rigeur” some years ago, the prepping community is increasingly turning to Bitcoin, as Bloomberg reports.

One subset of gold investors, which is both over-stated and over-ridiculed in the mainstream media, is the “preppers”, or those preparing for a catastrophic disaster to occur in the future by stockpiling food, ammunition and “durable” methods of storing their wealth, etc. We clarify the term “preppers” because it is not common parlance in many European countries. While some allocation in gold was basically “de rigeur” some years ago, the prepping community is increasingly turning to Bitcoin, as Bloomberg reports.

Wendy McElroy is ready for most doomsday scenarios: a one-year supply of nonperishable food is stacked in a cellar at her farm in rural Ontario. Her blueprint for survival also depends upon working internet: part of her money, assuming she needs some after civilization collapses, is in bitcoin. Across the North American countryside, preppers like McElroy are storing more and more of their wealth in invisible wallets in cyberspace instead of stockpiling gold bars and coins in their bunkers and basement safes. They won’t be able to access their virtual cash the moment a catastrophe knocks out the power grid or the web, but that hasn’t dissuaded them. Even staunch survivalists are convinced bitcoin will endure economic collapse, global pandemic, climate change catastrophes and nuclear war.

“I consider bitcoin to be a currency on the same level as gold,”McElroy, who lives on the farm with her husband, said by email. “It allows individuals to become self-bankers. When I fully understood the concepts and their significance, bitcoin became a fascination.”

Wendy McElroy’s profile, for what it’s worth, is not exactly that of a “whacko” prepper. A former journalist with FOX News, McElroy might be described as an “anarcho-capitalist”. She has authored a dozen books and numerous articles on subjects such as voluntarism (all forms of human association should be voluntary), feminism, how pornography can benefit women, capitalism and defending Wikileaks. In an article “Would Bitcoin ‘Function’ in a Societal Collapse?”on bitcoin.com, McElroy cited the growth in Bitcoin adoption in the midst of the collapse of Venezuela’s economy and its currency.



Bloomberg continues by noting the seeming contradiction for preppers, like McElroy, since a collapse in the grid would take the internet down. However, it’s the ability of Bitcoin to operate beyond the control of central bankers (so far) which is a key attraction.

At first glance, it seems counter-intuitive that some of bitcoin’s most ardent proponents are people motivated by the belief that public infrastructure will collapse in times of social and political distress. Bitcoin isn’t yet widely accepted as a method of payment and steep transaction costs make it inconvenient to use at vendors that do take it. Preppers, as it happens, have a different perspective on what they see as the money of the future, which has surged 10-fold in the past 12 months as supporters lauded it as a digital alternative to rival the dollar, euro or yen. Used to send and receive payments online, bitcoin is similar to payment networks like PayPal or Mastercard, the difference being that it runs on a decentralized network—blockchain—that’s beyond the control of central banks and regulators. It was born out of an anti-establishment vision of a government-free society, a key attraction for those seeking unhindered access to their capital in case a massive shock shuts down the banking system.

Even if the grid went down temporarily, preppers are attracted by the blockchain’s record of Bitcoin holdings and transaction.

“Not too long ago, people in the prepper community were actively warning against crypto, and now they’re all investing in it,” said Tom Martin, a truck driver from Washington who runs a social-media website for people interested in learning skills to survive disaster.

“As long as the grid stays up, people will keep using bitcoin.”

In addition to gold, silver and stocks, Martin invests in bitcoin and peers litecoin and steem because they’re easier to travel with, harder to steal and offer better protection in the event of the kind of societal breakdown that would unfold if a fiat currency like the dollar collapsed. He’s among those confident that bitcoin can withstand even a complete blackout through the strength of the underlying blockchain, the anonymous public bookkeeping technology that records every single bitcoin transaction.

In the bitcoin.com article, Wendy McElroy noted the increasing dependence on blockchain and the internet, the revival of which would be a priority after a disaster.

Yes. Electricity and the internet may be less reliable or more expensive but they would be available. An increasing dependence on the blockchain would make it a top economic priority. It would also be a top military priority. In October 2016, the Pentagon revealed it was actively exploring blockchain technology “to create tamper-proof military computer systems, including those used to control America’s nuclear weapons.” Other nations are undoubtedly doing the same.

Bloomberg acknowledges this view.

Preppers, though, stock enough food and supplies to sustain them for months, if not years, and they expect whatever governing structure emerges post-calamity will prioritize getting the web back up and running.

“It may be difficult, if not impossible to access for a while, but once things start returning to some level of normality, then the blockchain will return as it was before the disaster,” said Rob Harvey, a bitcoin investor who prepares for natural and nuclear catastrophes by learning and teaching survival skills, like making a fire. “The blockchain does not need a specific place or a specific person to survive—that’s a strong survival tactic”.

Bloomberg notes how Bitcoin has increasingly become a topic of debate on prepper forums, where participants were previously gold devotees.

Discussions on the pros and cons of investing in crypto have popped up on survivalist forums like mysurvivalforum.com and survivalistboards.com this year as bitcoin rallied above $7,000. “Buy bitcoin” is now a more popular search phrase than “buy gold” on Google.

The buzz is starting to impinge on gold’s role as a store of value especially since, like the precious metal, there’s a finite supply of bitcoin, which proponents say gives it anti-inflationary qualities. Sales of gold coins from the U.S. Mint slid to a decade low in the first three quarters months of 2017.

“It’s definitely had some impact on the market,” Philip Newman, who does research on precious-metal coin sales and is one of the founders of research firm Metals Focus, said by phone from Washington. “People see bitcoin prices going to the moon. No one thinks gold is going to the moon.”

While gold’s lack of “portability” is considered a negative.

Along the fringe, the 20,000 libertarians expected to converge on New Hampshire as part of the Free State Project are also switching from precious metals. They like bitcoin because it isn’t created by a government, unlike conventional currency.

“You can use bitcoin for economic transactions in a way that gold was never designed to do because it’s a physical thing—it’s heavy,” Matt Philips, the project’s president, said by phone. “A lot of people don’t know what the heck to do with gold if you give it to them in exchange for a cup of coffee.”

Wendy McElroy’s support for Bitcoin is drawn straight from the philosophy of Ayn Rand in Atlas Shrugged.

Whatever doom-and-gloom scenario unfolds, McElroy, from Canada, has faith in bitcoin. She’s writing a book called Satoshi Revolution, inspired by the pseudonym of the person or people who created bitcoin in 2009 as an answer to the financial turmoil wrought by the global financial crisis. She says the digital currency breaks society’s dependence on a state that uses its monopoly over the issuance of money to dominate the economy, making it a natural hedge against disaster. “It is a people’s currency,” she writes in the book’s introduction. “Bitcoins move seamlessly through a world without states or borders, obeying only the command of individuals who choose to deal with each other. Immune to currency manipulation and inflation, they do not serve the powerful elites at the expense of average people.”



Free "dummies guide" to trading options

Did you know trading options can actually be safer and more profitable than buying and selling stocks? Video and plain English training guide reveals how to get started tonight. 100% free.

Download now.

Continue Reading

Cryptocurrencies

Can anything stop bitcoin? Price above $8,000

Forget about boring stocks. Bitcoin is where it’s at these days for investors.

Published

on

Forget about boring stocks. Bitcoin is where it’s at these days for investors.

The virtual currency is now trading at a record high above $8,200 — just a little more than a month after bitcoin first passed the $5,000 level. If this keeps up, bitcoin could be trading at $10,000 before the end of the year.

The price of one bitcoin (XBT) has surged more than 735% this year alone and have skyrocketed nearly 40,000 % in the past five years.



Of course, bitcoin’s meteoric rise has led to some skepticism. JPMorgan Chase (JPM) CEO Jamie Dimon has bashed it on numerous occasions, calling it a “fraud” that’s better off being used by drug dealers and North Korea.

And Saudi Prince Alwaleed, a billionaire whose Kingdom Holding Company owns stakes in Apple (AAPLTech30)and Citigroup (C), told CNBC before he was arrested in a sweeping anti-corruption probe that he thought bitcoin was an “Enron in the making” that will implode.

But while some see a bubble about to burst, others see opportunity. Lloyd Blankfein, the CEO of JPMorgan Chase rival Goldman Sachs (GS), took issue with bitcoin critics.

Blankfein tweeted last month that “folks also were skeptical when paper money displaced gold.” Interestingly, technical analysts at Goldman also correctly predicted earlier this month that bitcoin prices would soon top $8,000.

Blankfein raises an interesting point though. Sure, some investors are likely flocking to bitcoin as a speculative bet because they’ve watched the price climb higher and higher.

But there’s also a legitimate case to be made that bitcoin, ethereum, litecoin and other cryptocurrencies are the future of money and that more and more people will conduct actual transactions using these currencies.

To that end, Square — the popular mobile payment service run by Twitter (TWTRTech30) CEO Jack Dorsey — recently announced a trial that will let some users of its Cash app purchase bitcoin.

bitcoin prices 112017

“We’re always listening to our customers and we’ve found that they are interested in using the Cash app to buy bitcoin,” said a spokesperson for Square (SQ) in an email to CNNMoney.

“We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system,” the Square spokesperson added.

And CME Group, owner of the Chicago Mercantile Exchange, said earlier this month it plans to soon list bitcoin futures contracts. CME (CME) CEO Terry Duffy noted that there has been “increasing client interest in the evolving cryptocurrency markets.”

Futures let investors buy and sell an asset at a specified price at a later date, They’re popular bets for currencies, metals and agricultural commodities. In other words, CME Group is now treating bitcoin as a legitimate financial asset.



Related: Bitcoin prices have been incredibly volatile. What’s going on?

Many others agree. Frank Holmes, CEO and chief investment officer of U.S. Global Investors, wrote in a recent note to clients that bitcoin prices should keep rising simply because more and more people are likely to use it.

“Bitcoin adoption could multiply the more people become aware of how much of their wealth is controlled by governments and the big banks,” he said.

Holmes added that more startup companies are also looking to raise money through so-called initial coin offerings – the sale of digital currencies to investors instead of stock. That should lead to a further rise in bitcoin and other cryptocurrencies.

Dragonchain, a crytpocurrency startup originally backed by Disney (DIS), has held an ICO. Filecoin, a cloud storage company, raised more than $250 million earlier this year from an ICO — the biggest ever.

And online retailer Overstock (OSTK) is even planning an ICO for its tZero blockhain unit.

“In an effort to bypass the rules and costs associated with getting listed on an exchange, many startups now are opting to raise funds by issuing their own digital currency based on blockchain technology,” Holmes wrote.

To be sure, bitcoin prices have moved wildly in the past couple of months. There have been several big crashes of at least 20%.

Still, the price has always come roaring back — and analytics firm Meltwater has noted an interesting trend. Bitcoin prices have moved higher simply based on the sheer volume of news coverage… regardless of whether the reports or positive or negative.

In other words, there is no such thing as bad publicity for bitcoin, no matter how much Jamie Dimon and others bash it.



h/t: CNN Money

Free "dummies guide" to trading options

Did you know trading options can actually be safer and more profitable than buying and selling stocks? Video and plain English training guide reveals how to get started tonight. 100% free.

Download now.

Continue Reading

Cryptocurrencies

Dash Price Climbs 60% As Cryptocurrency Market Dips

Published

on

While leading digital currencies like bitcoin saw dwindling prices this week, one lesser-known currency called Dash made massive gains.

Dash prices experienced an impressive surge heading into mid-November, moving from about $319 to $520 in the span of just 12 hours. Since then, it has retreated somewhat, and as of this writing is hovering around $430.

Still, even if the 60% boost was only fleeting, it does prompt some analysts to wonder why it happened in the first place.

Scaling Led to Price Fluctuations

The biggest news in the cryptocurrency space in the past week was that bitcoin’s developers decided to abandon the SegWit2x protocol and the subsequent hard fork of the currency. (See more: What Happens Now That the Bitcoin Hard Fork Was Canceled?)

This plan had been in the works for months, with a broader conversation about the scaling issue having taken place for several years. So it jostled the markets when developers unexpectedly canceled the fork just days before it was set to take place.

By comparison, dash has already started its own scaling process, activating a block size upgrade for its network, according to Coin Telegraph. This process will boost blocks to 2 MB each. This block size is still smaller than that of bitcoin cash, but it’s possible that the news of bitcoin’s canceled hard fork prompted some investors to move their funds to dash instead.

Dash has quietly anticipated its own scaling difficulties and has determined a course of action known as an on-chain path. (See more: The Rise of ‘Private’ Cryptocurrencies.) This means that dash will not use separate payment channels, like the Lightning Network that bitcoin is adopting. Instead, dash will make use of extra-large blocks.

Evan Duffield, dash’s founder, indicated earlier this year that “we intend to show just how far an incentivized second-tier [masternode] architecture can take a project like dash.”

Version 12.2 Upgrade

Dash’s bigger blocks are just part of a network-wide upgrade called version 12.2. Besides the block size increase, this upgrade also entails a transaction fee reduction, security protections, speed upgrades, and the introduction of new wallets, among other features.

All of this is anticipated to make dash’s new project, Evolution, more streamlined when it emerges in 2018. In the meantime, these smaller steps in that direction are likely attractive to investors.

Finally, it’s possible that the quick price boost dash experienced was as a result of pump and dump schemes. In these cases, investors with large sums of money buy up sizable volumes of an asset, squeeze the shorts, and then sell off that asset once new investors enter the field, making the price even higher. Pump and dump is, of course, not related directly to the developers of a new cryptocurrency, so this would be a possible external factor impacting dash’s price.

Free "dummies guide" to trading options

Did you know trading options can actually be safer and more profitable than buying and selling stocks? Video and plain English training guide reveals how to get started tonight. 100% free.

Download now.

Continue Reading
Advertisement

Trending