Jamie Dimon appeared on CNBC yesterday and just as it has gone many times in the past, the crowd was impressed, people laughed, Jaime smiled, and the condition of America’s financial institutions was more beautiful then it has ever been. As it always seems to be…even in the late fall of 2008. Not that there is necessarily another financial crises looming, however the American public plays a deceptive smoke and mirrors game with those in power. Those who always seem to know the truth, even before it hits the little people.
Mr. Dimon continued on with a fascinating denouncement of bitcoin and cryptocurrency in general as “a fraud…not a real thing…worse than tulip bulbs.” And as Wall Street’s favorite CEO continued to speak, bitcoin price fell 2.00%. Who would’ve thought that the head of JPMorgan, a company so intertwined with the US government through thick and thin would say anything negative against the one entity that could threaten the sovereignty of the American financial market, and his bank. The one financial vehicle that is gaining in value with traders and investors everywhere and the same one that is in its technological essence can’t be controlled.
But what many on Wall Street or other pillars of finance don’t understand is that the beauty in the blockchain technology is its self-regulation. As a form of trade and denoting value, bitcoin is the only monetary device left in the world that is finite (except valuable metals, like gold, which the US dollar is no longer backed by) as well as technologically infallible. Furthermore, as more people adopt the technology, it scales in its security, and the transaction codes become more ingrained. Spread this technology out over millions of shared devices world wide and you now have a financial system that is controlled by the people. This of course can be a scary place, as humanity has been there before – even fought wars over – and as capitalism has proved, doesn’t work. However, this is new and exciting. Unlike socialism or communism – there is no third party or government delineating who has what. You should buy in now in my opinion – financial market collapse has happened before and in the future bitcoin may be your only device for attaining the goods and services you need.
Once again, what the central banks and the government is afraid of is the control of what you can purchase or ascertain when you have a financial engine that is boundless. There is definitely an argument to be made here in the mission of good vs. evil. However, dismissing a technological innovation because your afraid of its geopolitical probabilities – or a lack of understanding in how to control it for your financial profit – is wrong. Interestingly enough, JPMorgan and its leadership are proponents of financial market deregulation…maybe just not that much deregulation. At least not enough to threaten their livelihood.
I am by no means a communist, anarchist, or any sort of “disruptor.” – fiscally conservative actually. In fact, I’m largely a fan of Jamie Dimon and the way he runs JPMorgan, (letting the 2008 thing slide, that deal was way too complex with too many culpabilities) after all he did help pay back 13 billion. In the same interview, he did endorse the Blockchain technology behind bitcoin. However, its time to keep an open mind before being totally dismissive. I believe the smartest of us truly learn from our mistakes and come up with better ways to ensure our future success. After all, survival is coded in our DNA. Blockchain technology – whether bitcoin survives or not – will be one more way in which we accomplish this and maybe provide for greater financial freedom.