Hi everyone. This article will cover an explanation for the Bitcoin fall (currently <$3900) and the decline of other cryptocurrencies over the past one or two days. Specifically, it will explain the conflict of interest regarding the JP Morgan CEO's comments about Bitcoin.
The CEO of JP Morgan recently said that Bitcoin is "a fraud," and that he would fire any employee trading or interacting with it for being too "stupid." However, there is a clear and obvious conflict-of-interest here that I believe many traders are not seeing, leading to a panic sell.
First of all, Jamie Dimon (CEO of Chase Bank) is a successful CEO, renowned financial analyst and proven expert in finance. However, this is one case where being the CEO of a bank does not particularly help him.
Bitcoin's creation was opposed to central banks. Access to banking requires permission from a central authority, spending limits, slow transactions, and fees. Additionally, you should be aware that finances and money stored in a bank account aren't actually "stored" in some place under your control, they're simply IOUs to pay you when you want to be paid. Bitcoin is a threat to the very existence of centralized banking, and its main job was to cut out the middlemen, government, and central authorities in money and finance.
It used to and somewhat is still treated as a "novelty," but is maturing very fast, and banks should be scared. It's likely that Jamie Dimon's comments on Bitcoin revolve around a fear that Bitcoin may be his demise and the fall of banks, like his. Is there any reason for a bank CEO to support a concept whose main goal is to kill banks? Looks like even his daughter knows better, as Dimon ironically reported that his daughter owned and even made a profit off of Bitcoin :)
To end this segment off, let's consider this comic (src):
Regarding investment advice on Bitcoin, don't short and don't sell. Just hold (or "hodl," if you prefer). Holding doesn't mean not using your coins and letting them sit there, it simply means: don't panic sell on news or dips such as this. In fact, previous dips such as this one have been great buys.
In fact, just zooming out shows that short-term dips like this are usually nothing to worry about:
Thanks for reading,
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Image sources: 1,3 - CoinRanking.com, 2 - reddit
Disclaimer: This article is not intended to provide investment advice. Please conduct your own research before investing or trading cryptocurrencies. All opinions not explicitly linked to other sources are my own.
