JP Morgan: Bitcoin would only make sense in a dystopian scenario

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JP Morgan continued to criticize bitcoins and crypto-currencies, claiming that their value was still unproven and that it would be at least another three to five years before blockchain technology made the difference for the banking sector. .

Read also: The Jamaica Stock Exchange plans to list security tokens

"A dystopian scenario"

The largest bank in the US has reaffirmed that it is still skeptical about cryptocurrencies. JP Morgan said such badets would only have value in a "dystopian scenario" in which investors would lose confidence in gold, the dollar and the global payments system, according to Reuters. "Even in extreme scenarios such as a recession or a financial crisis, there are more liquid and less complex instruments for transactions, investments and hedging," the bank said.

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The Manhattan-based company said it would still be years before blockchain technology would join major financial institutions and added that the participation of traditional financial organizations in the cryptography markets had shrunk in the last six months , individuals occupying a growing share of the market. According to Reuters, pension funds and badet managers have remained clear so far, although progress has been made in the market infrastructure that allowed the emergence of methods safer storage of digital currency. Despite this, people continue to worry about the volatility of crypto-currencies, security loopholes and digital badets used for illegal purposes, such as money laundering or the purchase of cash. illicit goods.

JP Morgan added in its report that the crypto-currencies used for payments would remain "contested" and that no major distributor would accept them in 2018, although markets where small businesses control payment methods can be fruitful in the future for the distribution of cryptocurrencies. JP Morgan added that the bitcoin core (BTC) could fall below $ 1,260 if the bear market persisted. Analysts at the bank also said BTC was worth less than the cost of mining, saying:

The drop in bitcoin prices from about $ 6,500 for most of October to less than $ 4,000 has led to increasingly negative margins for just about every regions, with the exception of low-cost Chinese miners.

Continuous skepticism

This is not the first time JP Morgan has criticized BTC and cryptocurrencies. A group of badysts at the bank in December said the protracted bear market of 2018 frightened BTC's institutional investors, adding that the interest of financial institutions for bitcoin trading "faded" as key indicators as the open interest index in future bitcoin have declined. A number of experts, however, rejected the bank's skepticism, saying it was likely that digital badets would survive.

JP Morgan Chief Executive Officer Jamie Dimon made headlines in 2017 when he said he had "a problem" with non-fiat crypto-currencies, insisting that the people who manipulated them were "stupid" and that "the governments will crush one day".

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