Is bitcoin a "fraud that will blow up"?
Bitcoin has sky rocketed recently, breaking record after record and stumping even the most experienced investors, but I guess that happens when a currency is able to double itself seemingly overnight, it's absolutely unprecedented. Bitcoin has been a huge factor in the boom of all crypto-currencies which started the year with a total value of $17 billion and since then there has been more than a ten-fold increase in value of cryptos, sitting on $180 billion.
Jamie Dimon, the chief executive of JPMorgan is adamant that bitcoin is a “fraud” and it will eventually “blow up” and continued by saying that if any of his traders were caught trading in bitcoin he would “fire them in a second”. He seems very hostile towards the whole concept of crypto-currencies, but maybe he is so against it because he loves the current system we have going on. He loves being rich in fiat money and he loves the corruption that this type of money brings, I’d be scared too if I had a horse as big as his in the race. But maybe he is a smart man who knows what he is talking about and all bitcoin investors should not be so smug in assuming that they know better than people that have devoted their lives to the financial sector and all the ins and outs that come with it.
Let me know what you think: is bitcoin in a bubble, will it burst or is it a good time to invest, is Dimon lying to try and salvage an intrinsically broken system that favours the very, very wealthy.
Thank you for reading, I’d love to hear your thoughts and have a good day.
The mining aspect of crypto needs an overhaul. At least to me, I thought the original intention of crypto was to help prevent the centralization and control of money by a few big players.
However, over bitcoin life, we have seen a very large portion of mining power and coins being held by a handful of people. These individuals have significant influence over the market, and together they could conceivable cause a mass sell off and crash in the price.
But... will it happen? Well, based on the frenzie at the moment, its in their collective interest to hoard the coin as long as possible, creating the illusion of scracity and pumping the price even further.. But.. all it will take is for 1 or 2 big players to flood the market for the price to start crashing... after all a lot of the current buyers are purely speculating on the price.
The other thing that baffles me with bitcoin are the continual forks. Its hard to imagine that a fork could overnight create billions of dollars of wealth out of nothing. Yet that is exactly what has happened with bitcoin cash and gold, and has clearly incentivised the large number of bitcoin forks being proposed. The thing with the original bitcoin was the supply was capped, so in a sense it makes sense that the price would naturally increase in value. However with the ability to fork and create something of a very similar nature, this hard cap is not quite the same, and if the forking continues excessively "should" have a negative impact on the price....
Im all for cryptocurrency, and decentralisation, but in order for that to actual happen we probably need to revamp how mining works..
This is all just thoughts and opinions, so don't take it too seriously.. For all we know bitcoin could hit $1M by next year :P ??
Wow okay I just started learning about bitcoin recently so I love hearing new things that are integral to the running of bitcoin. Have you got any resources I should look at if I want to learn more about cryptos in general? You seem to have a good grasp of it all.
Thanks mate but i really dont :P a lot of what i wrote is just opinion, and echoing what friends and family have mentioned. Some work in the IT and finance field so they have some pretty strong opinions.
Most of what I know is from posts like this on reddit, bitcointalk, and the white papers published by all the new crypto coins.
Okay well hopefully I'll just soak in information as I go