Why I'm contrarian to Jamie Dimon (from an ex-JPM employee)
Mr. Dimon,
My name is Mike and I wanted to address a few of your points on your recent stances against bitcoin and why I think you’re dead wrong.
I watched both of your Interviews and every reason you gave not only didn’t make sense but seemed threatening. In fact, one could argue you threatened me and an entire community of people who have more faith in one another than anyone does in any major banking institutions today.
Not only do your views represent the very small elite minority of people and institutions, but you have a complete disregard for what the people you’re representing actually want. My aim is to not only completely disprove everything you’ve said but also to enlighten those you’re blatantly misleading, framing this currency as negative and harmful to those who would embrace it. Every reason you think it won’t work is why the rest of the people believe it must.
So, where to begin…
You called Bitcoin and other cryptocurrencies a “novelty… that they’re kinda neat.” Yes, they are “neat.” They are also revolutionary. Maybe not for you, but for the rest of the world and the majority of citizens in the United States the promise and potential is extremely great. Anything in its infancy stage could be considered novel. I bet you thought the internet was novel too when it first came out, huh? A major difference you also don’t seem to understand is the trust it takes and people have in one another to have started this movement and to keep it going, in spite of people like you. The internet grew because it was practical and opened up massive audiences for businesses like never before; Bitcoin has grown and will continue not only because of its practical use but because it’s a better alternative to what we have today, to your financial systems.
Used for illicit purposes? Nah, not anymore. There’s a new champion on the block, check out Monero. Besides, you don’t think dollars have ever been used for illicit purposes? Please. I can’t get through one season of Narcos without laughing at your words.
“It’s a fraud.” In what sense? How do you define fraud? Google defines it as “wrongful or criminal deception intended to result in financial or personal gain.” Or maybe you’ve forgotten what the big banks who were “too big to fail” did just a few years back losing the people’s money and getting bonuses for doing so? Or how The Federal Reserve (The Fed) bailed out these banks with trillions of consumer dollars and then didn’t even have to explain to US SENATORS where the money had gone and to whom? Doesn’t that sound like fraud to you? It does to a lot of people. In fact, it not only sounds illegal but unconstitutional. Since when did we start putting private companies in charge of the entire US monetary policy with no checks and balances? Oh, that’s right, when members of your institution along with several others (from Wells Fargo, etc.) got together in 1913 over a holiday recession to coerce representatives and pass a bill (Called the federal reserve act) that gave your institutions all these privileges. Which brings me to my next point.
You mentioned countries form and control their own currency. Well, our country doesn’t control its own currency, a private company does (The Fed). So when you say the Government likes to know who has dollars, where it goes, what it’s used for, when it goes, they like to see it, you mean you and the other institutions like to monitor it, right? Because who is going to tell you ‘No’ when you guys are the ones making and enforcing the rules then claiming that this is what’s best for the people? Hmm, some things are starting not to make sense here.
“JPM moves 6 trillion dollars a day very efficiently, quietly, effectively, and very cost efficient.” That’s wonderful! I’m so happy the systems you’ve built allow for you and other institutions around the world to effortlessly move money back and forth between yourselves. In fact, if you moved billions of dollars from one of your accounts in Europe or China to here in the States, I bet it would happen in minutes. Then how come it takes so long (up to several weeks) for people to send wire transfers or other forms of payment to one another for FAR SMALLER amounts? I thought it was efficient? Why are you holding onto my money for longer than necessary? Just so you can make people wait, charge high fees, and act like you being in charge of my money is a good thing? Some transfers of money can have fees of up to 10% or more, to the point where you’re taking advantage of people clear as day. Moving money today is only efficient if it benefits large institutions, not for individuals.
“You just saw China go after them.” (Insert laughing emoji) This was pretty funny, especially how it was framed. Let’s go over a few things about China — First, at least 30% of all Bitcoin mining is being done in China. What that means for anyone unfamiliar with the topic, is that 30% of the online network that powers and verifies cryptocurrency transactions (including Bitcoin) is in China. So they have a huge vested interest and are considered leaders in this space which is why it’s unlikely that China is going to impose rules or regulations that would ultimately cripple this market. Second, China only stopped ICO’s (Initial Coin Offerings) not mining or the Bitcoin network itself. The reason they did this is that many people are creating scams and taking advantage of people, which is common in a new market without any real standards. China Closed ICO’s to put better regulations in place for mass adoption and will allow the people already supporting the network to continue. This was not a negative, but a positive. It may even create a model for other countries or establishments to follow. Dimon is presenting the wrong narrative.
Even other Hedge Fund managers, such as Brian Kelly who was featured on CNBC yesterday, agree that Dimon has it all wrong and why. Essentially, Bitcoin threatens to knock off bankers and big banks from their control over the money, the supply, and hence the people of America. I’m also willing to bet that alot of what is happening in the media is purely a distraction for the majority of people to not pay attention to the real opportunity at hand, a shift in power that is happening. Even your ex-head and VP of Global Securities Tom Lee is bullish on Bitcoin! If you didn’t catch it don’t worry, here’s the link. Even Dimon’s daughter bought some bitcoin and sees the value in it! If brilliance runs in a family, then I wouldn’t underestimate her so quickly. She clearly understands something you do not.
As for being threatening, Dimon mentioned “..the bigger it (Bitcoin) gets, the more involved the government is going to get …That it will end badly for people … that the government will come down on it…” When asked how will the government enforce this he responded with “..if you buy or sell Bitcoin, if you aid or abet in it .. you’ll go to jail.” Just to clarify for most people, you literally cannot stop Bitcoin because it’s digital and built on a decentralized system powered by computers all over the world (one of the best features of blockchain, the technology he praises so much that powers Bitcoin).
Second, you’re telling me that we should be afraid of what the government is going to do to people who support this currency/cause/idea? No no no no, the government and big banks should be afraid of the people and what we want. The government represents the people, not the other way around. If the citizens of this great country want, nay demand, that this currency becomes adopted because of its potential, then who are you to deny it? Let alone threaten to throw people in jail because of it!?! Are you crazy? I thought this was a free market? Where we had the choice of not only where to keep our money but with whom. I guess it’s all an illusion big banks prefer to control, huh? We’re not surprised, especially after 2008. Go home Dimon, the people don’t trust your institutions anymore.
“Creating money out of thin air with government backing is different from creating it without government backing…” No, it isn’t. The dollar used to have a store value based on gold, now it’s based on nothing. Bitcoin has a better store value so take your depreciating dollar elsewhere.
The only positive thing Dimon has admitted, several times in fact, is that the underlying technology, Blockchain, is very valuable. Indeed, Dimon, we can agree on something. This technology is very valuable because it has the ability to remove the power from a trusted third party within a transaction, as we can easily see with money (and why you’re so mad about it). This technology can be applied to many industries and business sectors and is sure to affect how people do business within the next few years. But unlike you and your cronies who want to start your own currency and/or utilize this network for your benefit and get rid of Bitcoin, the rest of the people want to share it with their friends and family and will continue to watch it grow.
To conclude, Jamie Dimon is great at being a banker but NOT a champion for the people. His words aim to undermine the only alternative to big banks we’ve had in a long time and actually threaten those who do support it. To anyone who is bright enough to understand what is going on, do not give in to what he is saying. It has become very clear over the last few days who is the real enemy in our society, who the real suppressors are, and who is committing the fraud that has hurt so many people in this country, not just once mind you, but over and over again. Will we let history continue to repeat itself or will we take back what is rightfully ours? Our basic human right to do what we want with our money, when, and use in whatever fashion. Bitcoin and Blockchain will change our society.