JPMorgan’s CEO Jamie Dimon trash talks the digital currency citing rather old media stories
It almost seems as if the days when we saw gargantuan moves in Bitcoin prices are long gone now. The market has settled down after the Chinese Bitcoin downfall in December and it has also recovered rather steadily from that too. Meanwhile Bloomberg reports that according to brokerage company ConvergEx Group LLC the digital currency is on its way to stability.
The company’s chief market strategist Nicholas Colas cites that the main reason for the softening of Bitcoin market volatility is increased merchant adoption, with the latest addition TigerDirect, Overstock.com and publicly listed social-games developer Zynga. It appears that we are entering into a self fulfilling circle with more widespread adoption that is caused by lower volatility, while volatility in itself is decreasing due to Bitcoin ‘mainstreaminization’.
Meanwhile Jamie Dimon, the CEO of the largest US mega-bank JP Morgan has trash talked Bitcoin stating in an interview with CNBC that it’s a “terrible store of value”. Not a big surprise considering the long term disruptive potential of the digital currency and the failure of his company to obtain patents for a similarly operating payment system that would allow anonymous transactions.
His statement sounds even crankier when goes on the elaborate that the major reason why he dislikes the crypto-currency is that “a lot of it is being used for illicit purposes”. Mr. Dimon seems to have been away from the fray for the past couple of months. We can’t blame him, since he is certainly a very busy man, but the questionable patents that his company filed for and their subsequent rejection will put his statements to ridicule by the Bitcoin community.
Meanwhile while Bitcoin has gained credibility with some Las Vegas casinos, it remains a long way from legal tender for gambling since regulatory scrutiny is currently forbidding it. So if you are a Bitcoin millionaire you can easily go to Vegas and pay for your stay, but if you’d like to spend some time gambling, you better bring some good old cash or a fat JP Morgan bank account!
For the full article on ConvergEx’s position on Bitcoin visit Bloomberg’s website.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.