JPMorgan CEO Jamie Dimon expects Bitcoin to fail. Cryptocurrency does not make a lot of sense to traditional thinkers from traditional industries, over age 50, who fall out of the demographic which is likely to understand it.
By Steve Jurvetson (Flickr: Jamie Dimon, CEO of JPMorgan Chase) [CC BY 2.0], via Wikimedia Commons
"I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down," he said. "This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius."
Jamie has a point with this quote and with the attitude he is describing for his daughter. Short term pump and dump investing strategies involve timing the market and these are often not based on a firm understanding of the fundamentals. He is implying that his daughter has very limited understanding of how Bitcoin works, what it is, why it's going up.
The truth is that some of us do have the background, knowledge, experience, and deep understanding to know why Bitcoin (more importantly cryptocurrency) is a true breakthrough. Because it's a true breakthrough as big or bigger than the search engine, and because at times tech markets have boom and bust cycles (Dot Com?), we can expect at some point the cryptocurrency markets to go down. The difference is long term wise thinkers know it's eventually going to come back up again within a few years as the technology continues to advance the state of the art.
Jamie Dimon is wrong on this topic. He may have a deep understanding of traditional markets and traditional ideas, but his understanding of cryptocurrency is nill because he cannot see it as anything of value from a technical perspective.
The fact is, it has tremendous value from a technical and social perspective as evidenced both by Steemit usage growth and by the total market cap. People have a deep desire to have digital money, to have digital assets, to be able to take part in capitalism, and many people are excluded from traditional systems because most people don't have the economic wealth of Jamie Dimon. This almost reminds me of people who don't understand the coming impact of AI on society, markets, and employment.