Why Do Bankers Hate Bitcoins?

C O N T E N T S:

KEY TOPICS

  • Well-known bankers like Jamie Dimon, CEO of JP Morgan, criticized Bitcoin saying it was a fraud before later withdrawing his comments.(More…)
  • In September 2017, Dimon notoriously labelled bitcoin ” a fraud?, a statement the Wall Street banker has since come to regret.(More…)
  • The new Crypto Capital Markets will emerge from this far stronger but it will take a few more years to understand, as regulators try to hold it in check, banks try to destroy it one moment, then make money from it the next (they are, after all, bankers) and let us remember the majority of the crowd remain unaware of Bitcoin.(More…)
  • The fact that people can control their money using cryptocurrency is causing unrest among bankers.(More…)
  • Will the Internet make banks obsolete?(More…)
  • Anyone who hates him simply doesn?t understand the whole essence of crypto, and that’s daily usage.(More…)

POSSIBLY USEFUL

  • BIS released a new 24-page document outlining why it believes cryptocurrencies like Bitcoin cannot become a bona fide financial instrument for the global economy.(More…)

RANKED SELECTED SOURCES

Why Do Bankers Hate Bitcoins?
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description: The Central Banks’ Bank (BIS) Hates Bitcoin ? Which is Reassuring …

KEY TOPICS

Well-known bankers like Jamie Dimon, CEO of JP Morgan, criticized Bitcoin saying it was a fraud before later withdrawing his comments. [1] Another factor that makes bankers hate cryptocurrency is that it will ripple across the financial sector. [2] The other reason why bankers might hate cryptocurrency is that tracking the source of funds is impossible. [2]

In September 2017, Dimon notoriously labelled bitcoin ” a fraud?, a statement the Wall Street banker has since come to regret. [3] Another fact to consider is that even if banks hate Bitcoin, that will not stop them to invest in it. [4] JP Morgan chief executive Jamie Dimon continues to Wall Street’s biggest bitcoin critic while legendary investor Warren Buffet joins the hate wagon. [3]

The new Crypto Capital Markets will emerge from this far stronger but it will take a few more years to understand, as regulators try to hold it in check, banks try to destroy it one moment, then make money from it the next (they are, after all, bankers) and let us remember the majority of the crowd remain unaware of Bitcoin. [5] Roger Ver is one crypto figure that attracts lots of hate online, for his criticism of Bitcoin core. [6]

The fact that people can control their money using cryptocurrency is causing unrest among bankers. [1] As I said earlier, cryptocurrencies are rapidly growing and bankers fear they might lose control over all money. [2] Here are the main reasons why bankers are against cryptocurrencies. [2] While bankers have been against cryptocurrencies, they have incredible benefits over regular currencies. [2] The rate at which cryptocurrencies are growing over the last few months has filled bankers with abhorrence. [2] The bankers are worried that the rate at which crypto market is growing will have a serious impact on their operation. [2] In future, the FIAT money controlled by bankers is likely to change. [2] What bankers fear the most is to lose their jobs since there would be no financial income. [2] The bankers fear that this new technology might replace them. [2] Some bankers have no idea on how this new technology works. [2] Many bankers get upset with it and tend to think of it as bad. [2] This means bankers will no longer have control over the economy. [2]

Will the Internet make banks obsolete? This question was one of the concerns of central bankers and economists 20 years ago when the Internet took over the world. [7] Bankers and most people involved in the financial system are ruthless and thus entices a megalomaniacal ambition in nature. [4] Since most of the bankers don?t know how this technology works or functions it makes them much less receptive to it. [8]

Banks love Blockchain but hate Cryptocurrencies was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story. [8] Legendary investor Warren Buffet has also joined the Bitcoin hate wagon. [9] In the interview when the host asked which one of you hates bitcoin more? Buffet said, “I do not know whether Jamie Dimon can top me or not.” [9]

Anyone who hates him simply doesn?t understand the whole essence of crypto, and that’s daily usage. [6] Okay, so now that you have that, could there be this massive conspiracy going on around all of this around the bankers, around the government, around whoever to gain control of the system. [10] The banker has no interest to it at all, he just asked: “Mr. Kowalski, what do you propose to offer the bank as collateral?”. [11] This was a statement on which the Wall Street banker has to regret. [9]

POSSIBLY USEFUL

BIS released a new 24-page document outlining why it believes cryptocurrencies like Bitcoin cannot become a bona fide financial instrument for the global economy. [12] The former (Bitcoin technology) does pose a serious threat in disrupting the entire global central banking system by eliminating the need to trust third-parties and centralized financial entities (like BIS), in particular — making them effectively obsolete. [12] Of course, the BIS omits that DLT is the harmless, none-disruptive component of Bitcoin that poses no threat to the central banking system. [12] The BIS extrapolates that if Bitcoin was to process all global payments in its current state, the decentralized network would overload everything from mobile devices to servers around the globe and effectively break the internet. [12]

Even though the price of currencies, like Bitcoin, are dropping in price, it is still very high in comparison to where it was a year ago. [1] The environmental impact would also be significant, according to the report, which estimates that the total electricity consumption of Bitcoin mining equals to that of mid-sized economies like Switzerland. [12] This view is not only shared among Bitcoin supporters but was also supported by The World Gold Council, which admitted that Bitcoin — often referred to as “digital gold” — could “undermine the tools used by the Fed and other central banks to influence the economy.” [12] There are hundreds of ICOs and enormous fluctuations in major cryptocurrencies such as Bitcoin and Ethereum. [2] He later appreciated the underlying blockchain technology and regrets making the negative comment on Bitcoin. [2] Are you looking for a comprehensive summary of the most idiotic nocoiner propaganda against Bitcoin? The Bank Of International Settlement’s Concern Troll Division has published a compendium just for you. [12] The market cap for Bitcoin alone compares to Bank of China’s. [2]

Recent fall in price has led to some analysts speculating that Bitcoin might have experienced bubble bursting in late 2017. [2] Last year, Bitcoin has tremendously increased from $1000 to $20,000 within the 12 months. [2]

Too big too Fast: The total Marketcap of the Cryptocurrencies at the time of this writing is hovering around $280 billion which has come down from an all time high of $835 billion at the beginning of the year when Bitcoin almost touch $20K. This of course made them bigger than the biggest bank in the U.S.?–?JP Morgan Chase. [8] JP Morgan’s own annual report filed with the SEC in 2017 revealed the bank privately acknowledges disruptive cryptocurrencies like bitcoin as a threat to its business model. [3] Criminals use money just like regular people, but at least bitcoin provides an immutable public record of all transactions. [13] Dong He, Deputy Director of IMF’s Monetary and Capital Markets Department (MCM), stated that the price of Bitcoin is never stable since its value solely depends on the percentage of people who value it and use it. [7] Once all Bitcoins are in use, people will likely try to store them since there is nothing that has a greater value to trade. [7]

There are a lot of talks of “price manipulation”, that banks try to drive down the prices so that people who invested in Bitcoin will start hating it. [4] Think of the people who bought Bitcoin during its peak at $20,000 – People who bet all their money and even bank’s money, on a super pumped asset. [4] Their plan has worked, you can notice people are starting to call Bitcoin a ponzi scheme or a new way to lose money. [4] What is the reason for the falling value of Bitcoin? Is its end near? I have already lost some money by holding on to it. [4] Some terrible things have certainly been financed by bitcoin, including drug purchases, money laundering, prostitution, etc., but U.S. dollars are the most popular currency used to finance these operations. [13] It can be used to send text warning to those running software on Bitcoin Blockchain. [14] Plenty of people support some future implementation of blockchain, but not bitcoin. [15] Take a second and think about it, why would Nasdaq even consider to become a cryptocurrency exchange if they wouldn?t believe that Bitcoin and other cryptocurrencies are at their infancy. [4] Dimon has been a vocal critic of bitcoin for years, calling the cryptocurrency ” a waste of time ” in 2015 among other remarks that followed. [3] We still haven?t reached the day where you could pay with digital currencies for a coffee at Starbucks – That will not be the reason why Bitcoin will skyrocket in the following years. [4] You wouldn’t be alone in assuming that bitcoin and other digital currencies are assets aimed at criminals transacting in secret. [13]

Technology adoption – That’s right, you hear it all over the news – All the major companies like Facebook, Oracle, Samsung are starting to look into this revolutionary technology, which is possible because of Bitcoin. [4] Bitcoin being down right now, sure, will that last? i most certainly feel like it will not stay down. [4] In a recent article for The Guardian, J.P. Morgan CEO Jamie Dimon was quoted saying: “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars. [13] The underlying belief that an invention like Bitcoin can only come from Silicon Valley is very strong in certain corners. [14]

Chainalysis caters to bitcoin businesses, banks, and exchanges in order to help them ensure they?re meeting regulatory measures. [13] Major banks will start to praise Bitcoin and others cryptos very soon. [15] Niall Ferguson, a public intellectual identified with conservative leanings told Bank of England that Bitcoin may be the future. [14]

Some wanted to use it in order to control fees while others wanted it to solve the mining problems of Bitcoin. [14] The day Bitcoin provides a globally recognised store of value, when Monero replaces cash for those who value privacy, and when IOTA becomes a monetised standard for data, that is the day we’ll all truly win. [15] If every billionaire decided to put just 1% of their assets in Bitcoin, their value can easily jump to $60,000. [14] Bitcoins are considered “commodity money” whereas central banks? money is considered “credit money.” [7] He said that Bitcoin or cryptocurrencies are the advent of these crises and can trigger them in the future. [14] The recent hostility against cryptocurrencies especially Bitcoin is telling. [14] The primary challenge for Mint Chip and MUFG Coin, just as it is with every other cryptocurrency including bitcoin, is very limited merchant acceptance. [16] The MUFG Coin is designed to “be better than bitcoin” and lower transaction costs significantly.” [16] The fact that Bitcoin has a limit of 21 million coins raises concerns about deflation. [7]

They’re accused of promoting an allegedly deceptive investment scheme by fooling investors into paying them via bitcoin or Litecoin, while another defendant is also accused of promoting the allegedly deceptive cryptocurrency Jetcoin. [13] Ashish is a cryptocurrency journalist who has been passionately involved in the bitcoin space since 2016. [14] Currency adoption – I don?t have to start talking about the trust that bitcoin has created in the financial decentralized system, but we are not there yet. [4] Bitcoin is becoming less popular with criminals as law enforcement units get better at tracking large amounts of the currency linked to criminal activity. [13] Bitcoin is the momentous change which brought about the crypto revolution in the first place. [14] The Bank of International Settlement (BIS?–?the bank of Central banks) came out with a harsh report taking a jab at the capacity scaleability of Bitcoin other Cryptos among other weaknesses. [8] The investors from the valley are now using Bitcoin to buy billions of expensive timepieces, diamonds, and other luxurious items. [14] Before the launch of Futures, there was no other way to bet against Bitcoin, they would first have to buy it and then sell it – That’s exactly what they did. [4] Bitcoin is here to stay – Let’s go through a nice re-cap of what we might have missed by being blinded by the dips in price happening in the past couple of weeks. [4] His interests lie in bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. [14] The meeting is important in the aspect of Bitcoin and Ethereums classification as security and the ICO tokenization. [4] He told them that Bitcoin is the future’s financial system. [14] Ferguson has pointed earlier also that comparison of Bitcoin to gold is much underrated. [14] “Beware?: Jamie Dimon and Warren Buffett Double Down as Bitcoin Critics You are using an outdated browser. [3] Appearing in televised joint interview on CNBC that aired Thursday, both Dimon and Buffett were reminded of their widely-publicized criticisms of bitcoin. [3] Dollars backed by the full faith and credit of the U.S. government have financed exponentially more illegal activity and terrorists than bitcoin. [13]

They have enacted the crypto payment way back in 2014 and accept Bitcoin, Bitcoin Cash and Monero. [14] Remember, in Japan bitcoin core (BTC) is ruled legal tender and is already used to buy everything from airline tickets to sushi. [16] If the private key was compromised and used to sign a message delivered for creating chaos, the first head on the chop would be of the Bitcoin developers. [14]

Many people say that lightning networks segwit would actually make the Bitcoin more centralized and actually make it controllable by a company or entity like a government or a bank right. [10] Okay, so on Reddit it says conspiracy; the government created Bitcoin possibly the rand corporation or federal banks right. [10] Okay, so that happened and then we saw Jamie Dimon back in September you know back in September Jamie Dimon the CEO of Chase Bank; the biggest bank in financial institution in the United States of America. he in September of 2017 called coin a fraud and then in January of 2018 says he regretted calling Bitcoin a fraud and believes in the technology behind it right. [10] You have to ask yourself why right? Some of the biggest names in tech, Bill Gates who obviously invented Microsoft and founded the company, you think would understand Bitcoin and Blockchain technology right. [10] They think they can gain control of the cryptocurrency and Blockchain movement, by hijacking Bitcoin, by using block stream to hijack Bitcoin in its development progress. [10] To gain control of this new credit ledger system that has been developed from Blockchain and ultimately from Bitcoin could that be going on? Or is that just a conspiracy theory right. [10] Okay, so what is actually going on here? Why are all these big-name players calling Bitcoin at fraud right? We?re like Mark Cuban who’s also founder of a big technology company is bullish on Bitcoin. [10] I mean he would short it he would short Bitcoin and it would cause the price to go down and maybe he is shorted it right. [10] September 12, 2017 right so, let’s look at the price of Bitcoin on 2017 September 12th right. [10] Okay, so that when he when Jamie Dimon came out and did that the price of Bitcoin whoops let’s delete that. [10]

The excitement around bitcoin and cryptocurrencies did not come up because people were looking for a digital version of gold. [6] The whole concept of digital gold has killed bitcoin, and created a speculative bubble around the entire cryptocurrency market. [6] Is it up in arms about the energy used by the gold mining industry? According to a recent Forbes article, gold miners use five times more energy than bitcoin does. [17] According to a recent article on the tech blog Hacker Noon, when you account for the energy costs of the global banking infrastructure, the banking business uses three times more energy than the bitcoin network. [17] According to the same Forbes article, the three million ATMs deployed worldwide use the same amount of energy as the bitcoin network. [17] The experts noted cryptocurrencies also require too much electricity, since bitcoin miners processing transactions use about as much electricity as the entire country of Switzerland. [18] The BIS said bitcoin and similar cryptocurrencies have “a range of shortcomings” that prevent them from becoming usable government-backed currencies. [18] It said bitcoin and cryptocurrencies are too unstable and are subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy. [17] In a stunning yet mundane announcement, the Securities and Exchange Commission declared – hopefully once and for all – that ether and bitcoin cryptocurrencies are not securities. [19] Monday’s report comes as Goldman Sachs, the New York Stock Exchange and other institutions are preparing for bitcoin trading — while the U.S. Securities and Exchange Commission has found considerable fraud in offerings of digital tokens. [18] Last week, bitcoin values fell sharply after a South Korean exchange reported it was hacked. [18] The value of a bitcoin, the biggest and best-known cryptocurrency, surged in mid-December to nearly $20,000, then dropped to less than $12,000 at the end of the month. [20] He explained the difference between Ripple and Bitcoin by saying that Bitcoin is the cryptocurrency while Ripple is a platform independent of its own currency XRP. He further strengthened the belief that Ripple would exist even if XRP vanishes from the market. [21] Ripple CEO Brad Garlinghouse caused some, well?ripples, in the cryptocurrency and altcoin sphere by calling out bitcoin. [19] Bitcoin is only the cryptocurrency while Ripple is a payment processing platform. [21] He was of the view that people would turn to Ripple XRP after they understand the differences between Bitcoin and Ripple XRP. [21] Yesterday Ripple’s CEO Brad Garlinghouse explained the differences between Bitcoin and Ripple XRP. He was speaking during Money 20/20 Conference in Amsterdam, Netherlands. [21] Deputy Governor Nadine Baudot-Trajtenberg said there had been public complaints Israeli banks were making it difficult for some customers to transfer money from their accounts to buy bitcoin. [20] The latest knock against bitcoin comes from a June 17 report by the Bank for International Settlements (BIS). [17] The BIS getting angry with bitcoin is the like the NBA issuing a polemic against a third-grade basketball league. [17] The BIS suggested bitcoin could be useful in “niche settings,” but concluded it has little advantage as a legitimate currency. [18] While bitcoin shows some weak signs of market maturity in terms of the currency responses to information flows, ethereum and ripple valuations do not support an idea that the crypto-currency markets are improving from information and risk-pricing perspectives. [22] In the footsteps of bitcoin, other major crypto-currencies have gained significant investor attention and market share, including ethereum and ripple. [22] In a recent paper, we have attempted to systemically analyze FMH-consistent behaviourof bitcoin, and two other leading crypto-currencies: ethereum and ripple. [22] A derivative argument to this is that while younger cryptos? valuations may lack connection to defined fundamentals, longer-traded crypto-currencies, namely bitcoin and ethereum, are maturing in the direction of establishing such connections. [22] Verge and Bitcoin Gold Hit Hard! It’s been a hard couple of weeks for popular cryptocurrencies Verge and Bitcoin Gold, as both have been at the receiving end of much-feared 51% attacks. [19] Committee members during the meeting on bitcoin and other cryptocurrencies urged Israel’s regulators to quickly come up with regulations. [20] Ironically, at the same time you know Bill Gates chairman or old founder of Microsoft and Warren Buffett, they both came out as harsh critics to Bitcoin and cryptocurrency in general. [10] It is important to mention that Bitcoin is the largest cryptocurrency being traded across the world. [21] He also clarified that people thought Bitcoin a panacea that would solve all their problems. [21] According to Ver, it’s at that point that the world saw an explosion of altcoins, as people sort out alternatives to bitcoin. [6] JERUSALEM (Reuters) – Israel’s central bank said on Monday it would not recognize virtual currencies such as bitcoin as actual currency and that it was difficult to devise regulations to monitor the risks of such activity to the country’s banks and their clients. [20] One of his key highlights was that bitcoin (BTC) started out so well, as the perfect digital currency. [6] They both say that they hijacked one another and I mean you guys canokay the story of how block stream hijacked Bitcoin is an incredible story of money lies and greed that become more, more and more relevant to the outside world every day. [10] Predictable money supply : Bitcoin and some other crypto-currencies are minted at a fixed rate and have a limited supply. [22] Buffett and Gates are the latest Bitcoin critics halting the $10,000 push right. [10] Right around 10,000 Bill Gates, Warren Buffett come out they say all these nasty things about Bitcoin. [10] There’s obviously you know the writing is on the wall here, he’s obviously not you know not honestly telling you the truth that he would short Bitcoin, because if he would he would actually do it and he would make billions of dollars doing it right. [10] Anti Bitcoin you know government friendly developers and they actually overtook Bitcoin and created Lightning Network segwit so forth and so on. [10] What is it? Bitcoin Isn?t supposed to be controlled by the government in the Satoshi Nakamoto white paper. [10]

Virtual Cash Machine : Customer obtains bitcoins from an ATM in Tel Aviv. [20] Thirdly, within high-volatility periods, bitcoin appears to exhibit price “stickiness”. [22] On May 22, 2010, an early bitcoin adopter Laszlo Hanyecz made what is assumed to have been the first bitcoin transaction, paying 10,000 bitcoins (BTC) for two pizzas. [22] There are other forces are at work here, each placing very different external pressures on Bitcoin and the broader crypto economy. [5] To date, the literature on cryptos, specifically bitcoin, includes the following key findings. [22] Put differently, fad-like spikes and collapses in value tend to happen in bitcoin markets at daily intervals, as well as in weekly and monthly frequencies. [22] The BIS leveled many more charges against bitcoin in its 24-page diatribe. [17] Faced with betting on the BIS or betting on bitcoin, I’ll take bitcoin over the BIS any day of the week. [17]

You would think this guy would be smart enough to go in short Bitcoin. [10] All of the empirical findings strongly indicate that bitcoin, as well as other crypto-currencies, suffer from extreme degrees of investor herding. [22] Retail investors, as well as professional investors specializing predominantly in crypto-currencies, especially bitcoin miners, tend to follow the same news and react in mutually reinforcing ways to this news. [22] Bitcoin and other new digital-currency investment-vehicle volatility is driven by investor sentiment, speculative fads and extreme herding. [22] During his 3 years in the industry, he has provided advisory services to investors on high returns cryptocoins like Ethereum and Bitcoin Cash. [6] Many people think that Bitcoin was like this and Bitcoin cash kind of split off as this offshoot from Bitcoin right. [10] Like where are these divergent views coming from? And we can only kind of exacerbate that or amplify that by looking at the war of Bitcoin core versus Bitcoin cash proponents right. [10] Is it Bitcoin cash? is it Bitcoin core? We don’t know what is the real Bitcoin is right. [10] That is what happened with Bitcoin cash and Bitcoin core segments and lightning right. [10] He supports Jihan whoo one of the smartest guys in tech supports Bitcoin cash and is steering away from Bitcoin core right. [10] Which is what block stream is and why a lot of people are now having a problem with Bitcoin core right all right. [10] As he put it during this event, bitcoin cash aims to eliminate the HODLER mentality, build services that incentive people to use Bitcoin Cash (BCH) as well as create real demand for bitcoin cash. [6] Roger Ver is one of the people who saw this threat to bitcoin and fully supported Bitcoin cash (BCH). [6] It’s not going to happen guys because we have Bitcoin cash already getting market share and people are already starting to realize what’s actually happening here guys. [10] Why? could there have been a government and banking conspiracy that has taken over Bitcoin core and Bitcoin cash is kind of the revival of Bitcoin in its truest sense to unlock or to unchain, unleash the general public from the banking and government control. [10] If you think that the war between Bitcoin core and Bitcoin cash is simply for fun you are absolutely wrong big, big, big our interests and financial interests are at stake here. [10] Those that are confused think kind of the same thing that think that Bitcoin cash kind of forked out and started right when Bitcoin you know the fork was in August right. [10] If you remember back in August of 2017 there was a hard fork where Bitcoin and Bitcoin cash essentially splitted and went their separate ways right. [10] Bitcoin cash was then you know this alternative Bitcoin forking from the same Blockchain essentially back in August of 2017 and is holding true to what Bitcoin is actually about and what it actually is in the Satoshi Nakamoto white paper alright. [10] Unlike bitcoin (BTC), Bitcoin cash (BCH) is scalable, fast, and has some of the lowest transaction costs in the crypto market. [6] There’s this big controversy that Bitcoin core which is BTC is the real Bitcoin and then Bitcoin cash which is BCH is the real Bitcoin right. [10] Obviously, John McAfee is against the banking system and he’s supporting Bitcoin cash, not Bitcoin core. [10] There has been a group formed by block stream called Bitcoin core and they consistently and you know almost like freakishly co-likely say Bitcoin core or BTC is the real Bitcoin. [10] The bitcoin core team has steered bitcoin in the wrong direction, by labelling it as digital gold. [6]

They literally just came out in the last day or two, I know they’ve been talking about it for a couple months, but yesterday they just came out and they really gave some anti Bitcoin and cryptocurrency sentiment in the market which has kind of started to help propel the price downward for Bitcoin right. [10] It’s not supposed to be controlled by the government. so let’s be so decentralized that no one or no single entity can overtake and control Bitcoin right. [10] Once you associate a user with their Bitcoin address you can read all their transactions on the blockchain, hence to ensure anonymity Bitcoin addresses must be changed frequently and it must be used together with other instruments, like TOR. [23] Speed : Being a distributed computing project means that Bitcoin transactions are at the mercy of not only network latency (like credit or fund transfer transactions) but the time it takes for the transaction to be processed and stored around the network. [23] Bitcoin advocates often contrast Bitcoin with “fiat money”. note 3 Bitcoin is in fact another form of fiat money; has no intrinsic value (i.e., has no use-value), similar to the U.S. dollar, note 4 and could be a general currency if 300 million people similarly behaved as though it was one, i.e., would do work in exchange for it. note 5 Its biggest problem as an exchange medium is that it is not widely accepted, and that trading is thus very thin indeed. [23] At the same time those speculators, who are providing all of the capital (the amount of money Bitcoin is actually worth is limited to the amount of fiat currency placed in Bitcoin exchanges as that is the only way new value can enter the ecosystem) and taking all of the risk of a crash, are chasing far lower percentage returns than initial users would receive. [23]

Almost all online retailers who supposedly accept Bitcoin actually charge whatever the price of the product would be in conventional currency at the current exchange rate, then cash in the bitcoins as soon as is feasible. [23] Yahoo Finance’s Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves after the Bank for International Settlements published an analysis of bitcoin, blockchain and cryptocurrencies as part of its annual economic report. [24] It was revealed in JP Morgan’s annual report filed with SEC in 2017, that the banks are considering cryptocurrencies such as bitcoin as a threat to their business model. [9] In 2015, Jamie Dimon called cryptocurrencies a waste of time and in 2017 he labelled bitcoin a fraud. [9] JPMorgan Chase & Co. (NYSE: JPM ) CEO Jamie Dimon isn’t one to mince words, dubbing bitcoin a “fraud” and questioning the intelligence of the people who buy it. [25] For most of its 10-year history, the digital currency bitcoin has been viewed by some people as the future of money. [26] That’s why the following stocks are all much safer bets on the digital money craze than bitcoin, ethereum or any other digital currency. [25] More people could flock to bitcoin as Square gives the digital currency a mainstream legitimacy. [25] Who’s doing the maths ? The answer is the most powerful distributed computing project in the world. note 6 While other distributed computing systems are investigating protein folding or sifting through radiotelescope data for signs of intelligent communication from the stars, Bitcoins are being generated by people running hashing algorithms to process transactions on a poorly-traded virtual currency. [23] Transaction fees : It is often predicted that Bitcoin will overtake other online payment schemes (“In five years, if you try to use fiat currency they will laugh at you.” — Silicon Valley investor Tim Draper 113 ). [23] The use case of the currency is purchasing illicit goods ( e.g., drugs and stolen data on darknet markets ) and darknet scams ( e.g., murder-for-hire ) 9 10 and extortion ( e.g., “ransomware”, for which it is the currency of choice 11 ). 12 It is becoming the preferred currency for internal use by online criminals. 13 14 Although Bitcoin is widely used on the darknet, it has a key flaw; it’s the most transparent currency in existence. 15 16 It is not anonymous per se. [23] Despite having a reputation for being used to pay for illegal goods and services anonymously, bitcoin is the most transparent currency in existence because it records everything in a blockchain. [23] Bitcoin is an open, decentralized, distributed ledger cryptocurrency and the backend technology is called blockchain. [11] Blockchain, the technology behind bitcoin, could be the most monumental shift in our culture since the internet, which is why Microsoft Corporation (NASDAQ: MSFT ) invested in it. [25] It’s such an incredible gain, in fact, that C-suite execs can no longer afford to ignore bitcoin and its underlying technology — blockchain. [25] Digital Credit will be launched in August 2019, with multiple clients (web, desktop, cell phone and more) and multiple blockchains (EOS.io, Ethereum, Bitcoin and more), and will support multiple programming languages such as javascript, Golang, Java, Python and more. [11] There will also be compatible version using other blockchains such as Ethereum and Bitcoin. [11] Why will blockchain build a better credit system? In 2008, a man named Satoshi Nakamoto published a white paper “Bitcoin: A Peer-to-Peer Electronic Cash System”. [11] Bitcoin relies on distributed consensus: the blockchain is what a majority of mining capacity says it is. [23] When Butterfly Labs stiffed people on Bitcoin mining equipment, Bitcoiners who paid with filthy fiat via PayPal were able to raise chargebacks and get their money refunded, which many did gleefully; 103 those who paid with Bitcoin had no recourse other than the courts. [23] Fiat coin : For the average person it’s far more hassle than it’s worth when the rest of the world takes traditional currencies (or “fiat” on Bitcoin communities, who use it as a snarl word note 8 ) and that there’s nothing they can buy with Bitcoin that they can’t buy with the money they already have. [23] Retail hassles : Much is made of Bitcoin’s efficiency for buying things online–but there’s almost nothing you can buy with Bitcoin that you can’t buy with the money you already have, and a credit or debit card already lets you buy things online with minimal hassle and with fraud protection. [23] There is a Bitcoin exchange hack or collapse approximately every month; up to 2015, a third of exchanges had been hacked. 87 Leaving any money exposed on a Bitcoin exchange is, statistically, a terrible idea. [23] On an occasion, Warren Buffet said investing in bitcoins is like spending money on gambling. [9] Responses to this range from wishful thinking that this will be irrelevant when Bitcoin takes over the world and then goes to the Moon, to assertions that people will choose Bitcoin despite its comparative lack of utility simply because they like the idea, to prognostications that when more small businesses start accepting Bitcoin — and why wouldn’t they! — popularity will boom (It should be noted that this has been tried in Cleveland, with poor results 102 ). [23] ” ” Years earlier, Bitcoin had promised that it would spread its benefits to all its users, but by 2014 large chunks of the Bitcoin economy were owned by a few people who had been wealthy enough before Bitcoin came along to invest in this new system. [23] The price of bitcoin keeps skyrocketing because people believe its price will keep shooting higher. [25] Sadly for his Fields Medal hopes, he couldn’t convince people to fund this enterprise. 128 The particular NP-complete problem he wanted to solve was not any of the zillions of long-known NP-complete problems it would have been useful to have a solution to he wanted to use it to mine Bitcoins more efficiently. [23] The protocol design is for this to take approximately ten minutes (average; in practice it varies randomly between a minute and several hours)–barely usable for network orders, but problematic for point-of-sale use (The beer-selling example doesn’t bother reconciling in real time, as the owner is treating the Bitcoin risk as a marketing expense). [23] Bitcoin is also an environmental disaster, using on the order of 1 gigawatt (GW) (that’s a billion watts) according to a 2013 and 2014 paper 60 61 Estimates would be about 7 GW by end of 2015 as the paper 60 shows approximately power use scales linearly with mining difficulty and mining difficulty in December 2015 is about 7 times the difficulty than when the paper is published (remember, mining each Bitcoin is more difficult than the previous one.) [23] The solution to this is “mining,” in which Bitcoin users run software to do all the necessary work. 7 Every time someone successfully proves they performed this work, they receive bitcoins in return. [23] In fact the Bitcoin protocol allows for the addition of more coins by community consensus, something that has already occurred several times before to allow for new payment conditions. [23] To be fair, quite a lot of altcoins since the 2013 boom were blatant scams: make a coin, premine it, promise far-fetched features in BitcoinTalk’s altcoin forum, 134 get it onto an exchange, sell it for Bitcoins. [23] Bitcoin, Ethereum, and Litecoin are all available on the exchange. [27] One Bitcoin exchange, Bitcoin-Central (now called Paymium), has achieved bank status in France. 88 Their aim is to supply an alternative to PayPal, and their central bank backing on balances only applies to accounts in euros rather than in bitcoins. [23] There is no central bank backing Bitcoin; previous virtual currencies, such as E-Gold, Flooz, Beenz, Lindens, or WoW gold have always had an organization behind them. [23] Unlike other fiat currencies, there is no entity that backs the currency by declaring its willingness to accept Bitcoin as payment for anything. [23] ” ” the best penny stock and the worst currency in the world. ? Bitcoin is a revolutionary technology built on reactionary economics. [23] The Bitcoin Bubble and the Future of Currency, Felix Salmon (The ultimate primer on why Bitcoin, if not drastically retooled, will eventually fail — and how some of its features may be repurposed elsewhere.) [23] Physical bitcoins : For those who prefer a non-virtual virtual currency, some companies came up with physical bitcoins. [23] A number of copycat cryptocurrencies (“altcoins”) exist as a consequence of the Bitcoin experiment, only a few of which, such as Litecoin and Dogecoin, have achieved any notability. [23] In this guide, we walk you through how to buy Bitcoin and other cryptocurrencies. [27] I’ve used all four of these websites to buy and sell Bitcoin, and the transactions have been smooth and reliable every-time. [27] Bitcoin mixers are services used by clients to create a misdirection of the origin of said clients’ bitcoins; in layman’s terms, it cleans dirty money. [23] Bitcoin is “fiat money” in that it consists of code that has been declared to be money. [23] Their model made the price of Bitcoin soar (higher than other merchants had the value). [27] Dogecoin 119 gained some popularity on cuteness value and use for tipping on Reddit. 120 Unlike most altcoins, Dogecoin is slightly inflationary rather than deflationary. 121 Despite having similar get-rich hopes, Dogecoin fans are also notably less dickish than Bitcoin fans, though that’s not hard to achieve. [23] Bitcoin actually uses integer calculations, so that number’s fudged, but it’s still the largest by a ridiculous margin. [23] Bitcoin (code: BTC, XBT note 1 ) is an Internet -based decentralized cryptocurrency and payment network. [23] The following bitcoin stocks aren’t pure plays on the cryptocurrency and that’s what makes them attractive. [25] He even called bitcoins a real bubble and suggested that cryptocurrencies will face an impending doom. [9] After then, bitcoin and many other cryptocurrencies are introduced. [11] Blockchain Capital recently conducted a study of 2,000 millennials (aged 18-34) and asked them to make a theoretical choice between owning $1,000 in bonds or stocks and $1,000 in bitcoin: Thirty percent chose bitcoin. [25] The difference between Microsoft’s blockchain and bitcoin’s, however, is that bitcoin is a public blockchain while Microsoft’s is specifically designed for enterprise. [25] In the past three months alone, the price of bitcoin has soared nearly 340%. [25] In order to prop up the initial system, Bitcoin mining was designed to bribe early users with exponentially better rewards than latecomers could get for the same effort. [23] Advanced Bitcoin Simulator and Bitcoin Mining Profit Calculator: Gaiden, brilliant dark satires of Bitcoin, its community and its history. [23] Bitcoin miners quickly moved to the GPUs of video cards, then field-programmable gate arrays (FPGAs) specifically programmed for the algorithm, and now mining is done on ASIC chips specifically designed for Bitcoin mining based on said FPGAs. [23] The irony of all this is that once hardware and power costs are factored in, it’s hard to make a profit from Bitcoin mining. [23] Non-fixed supply : It is widely believed that there is a fixed supply of bitcoins — this is something that appeals to goldbugs since it makes Bitcoin a sort of virtual gold. [23] In its current state – and as predicted as part of its core design curve – it is not feasible for a newcomer to Bitcoin to mine their own assets. [23] Bitcoin takes the monetary system back essentially a hundred years. [23] Almost eight years ago, I wrote a article here asking whether or not Bitcoin was a scam. [27] At the time I owned these Bitcoins, I was single, living alone, employed at a job I had just started with student debt up the wazoo. [27] Jamie Dimon, chief executive of JP Morgan continues to be the biggest Bitcoin critic of the Wall Street. [9] Bitcoin ( BTC-USD, BCH-USD ) may not have the trust of Wall Street institutions just yet, but millennials are all in. [25]

Ethereum is the trendy altcoin in 2016, which offers a platform for smart contracts. (Imagine Bitcoin as a spreadsheet, Ethereum as a spreadsheet with macros.) [23] Perhaps most importantly, there is no fee for depositing and withdrawing Bitcoin, Litecoin, or Ethereum. [27] This effectively makes Bitcoin a pump-and-dump scheme wherein these early adopters, who have more bitcoins than anyone else ever will and did little or no work and assumed no risk, hype it up so they can offload their bitcoins onto fools who think they’ll strike it rich as speculators. [23] Andrew Napolitano from Fox Business Network supports Bitcoin as well. [23] While Dimon said, “I do not want to be the spokesman of bitcoin but you should beware of bitcoins.” [9] Lately, to get some insight into what the future might hold, some are focusing on how bitcoin compares with currencies of the past. [26]

RANKED SELECTED SOURCES(27 source documents arranged by frequency of occurrence in the above report)

1. (44) Bitcoin – RationalWiki

2. (36) How the Elites Plan to Take Down Bitcoin and Control the Crypto Movement You Decide CryptoCamacho.com

3. (18) Why bankers hate the cryptocurrency world

4. (15) Niall Ferguson to Bank of England, “Bitcoin is the future”

5. (14) Bitcoin is down. What will happen? – Quora

6. (12) Ripples in the Crypto World: Systemic Risks in Crypto-currency Markets

7. (11) 8 Bitcoin Stocks That You Wont Lose Your Shirt Over (BTC-USD) | InvestorPlace

8. (11) Hate him or love him, Roger Ver is right about bitcoin Cash (BCH) and the future of crypto | Crypto Recorder

9. (9) Jamie Dimon and Warren Buffett Double Down as Bitcoin Critics – BTCWires

10. (8) Most People Are Dead Wrong About Bitcoin and Criminals ReadWrite

11. (8) The Latest Smear Campaign Against Bitcoin – Palm Beach Research Group

12. (7) The Central Banks Bank (BIS) Hates Bitcoin — Which is Reassuring – Bitcoinist.com

13. (7) How to Buy Bitcoin and Other Digital Currencies

14. (6) Why Blockchain will Build a Better Credit System? | Coinschedule

15. (6) After Understanding that Bitcoin is not a Panacea Dozens of Banks will Use Ripple Products in 2019: Says Ripple CEO

16. (6) “Beware?: Jamie Dimon and Warren Buffett Double Down as Bitcoin Critics

17. (5) Banking experts: Cryptocurrencies can’t work as real money – UPI.com

18. (5) Israel Refuses To Recognize Bitcoin As Currency – The Forward

19. (5) IMF’s Analysis: Cryptocurrencies May Reduce the Value of Centralized Banks | [blokt] – Blockchain, Bitcoin & Cryptocurrency News

20. (4) Banks love Blockchain but hate Cryptocurrencies – Crypto Investing Insider

21. (3) Why Bankers Hate The Cryptocurrency Markets – Crypto Block Wire

22. (3) Major banks will start to praise Bitcoin and others cryptos very soon. : CryptoCurrency

23. (3) Bitcoin Evangelists Will Hate This Cryptocurrency Announced By Japan

24. (3) Bitcoin | Crush The Street

25. (2) Is Bitcoin the Future, or an Echo of a Failed Past? – WSJ

26. (2) What is going on with Bitcoin?? – CryptoCoin.News

27. (1) MARKETS: Central bankers bunkered in Basel will never get bitcoin [Video]