Bitcoin just a novelty

Bitcoin just a novelty

Bitcoins were called a "novelty" by the Chief Executive of JP Morgan Chase, one of the largest traditional banking institutions in the World.  Speaking to CNBC, Jamie Dimon said, ""Right now these crypto things are kind of a novelty." and then went on to suggest that the US Government and other governments around the World might be tempted to "shut down" the bitcoin market if it became too big.

Unable to see the irony in what he was saying, well-known cryptocurrency sceptic Dimon added, "[Bitcoins are] creating something out of nothing that to me is worth nothing, it will end badly". 

Of course, JP Morgan know a lot about such activities having just been fined $13 billion for packaging and reselling subprime mortgage-backed securities containing 'Alt-A' category loans.

It is easy to see why an institution that makes money from fiat currency markets could feel threatened by Bitcoins and other digital currencies.  So perhaps Dimon’s comments should be taken with a pinch of salt.  But there could be an ulterior motive to this constant Bitcoin-bashing.

Online gambling was effectively made illegal in the USA following the UIGEA.  Not many people saw it coming and the act took the gaming industry by surprise.  The main agitators behind UIGEA were said by many commentators to be regular, ground-based casino operators.  Not happy at being left behind by early movers opening online casinos, they lobbied congress to get their internet competitors banned. 

Could the same be going on here?  Are JP Morgan Chase and other banks trying to lobby for Bitcoins to be banned in attempt to ‘protect’ their existing markets?  Time will tell, but UIGEA did not stop online gambling, it only set the USA many years behind the rest of the World.

 

Written by Chris Brown


Page Last Updated: 08/01/2018 11:08:30