Jamie Dimon, Grand Wizard of JP Morgan, Forger of Chains, Master of Trading Desks, Ruler of the Golden Men, Father of Bailouts and the first of his name has come out swinging on Bitcoin. Again.
This is the same position Dimon has had on Bitcoin for years. In 2015 he said “you’re wasting your time with Bitcoin”. Bitcoin was trading at ~$320 the week this video was uploaded to YouTube in November 2015. If his comments about the government never letting go of control of currency doesn’t cause a concern for you then you *might* be a JP Morgan employee.
The price correction the past few days was overdue. I’ve been tweeting about it for weeks. I expect $3200 Bitcoin before the correction completes. Bitcoin was already sliding. Dimon’s comments shook weak hands who were going to capitulate soon anyway.
Here’s what there is to remember. If you have possession of your private keys there is no counterparty risk. Governments can shut down exchanges or attack fiat onramps but they can’t stop bitcoin. Exchanges DO NOT equal Bitcoin. Shut one exchange down and there are dozens of others to use.
So why would Dimon say this now? The word on the street is Dimon is privy to pending US government action on one or more exchanges. So he’s wrong on bitcoin but he’s not dumb. He’s making statements now because he knows the next move coming.
There is risk if you are holding your crypto on an exchange. Then you are vulnerable. If you hold your private keys then you have s swiss bank in your pocket, extra Obama.
Decentralized exchanges will be big in 2018. Today’s exchanges are a choke point and a tracking mechanism for big brother. With decentralized exchanges truly there will be no way to shut down crypto.
But what if governments outlaw crypto currency? Well, we’ll probably see them try. China has taken measures to put controls in place. Too late, the cat is out of the bag. I think a more likely scenario is we’ll see state level actions in the crypto space. Rumors are N Korea is mining Bitcoin. China may be on verge of nationalizing their largest Bitcoin mining operations.
It’s an interesting time for Crypto. Practice safe crypto and keep your keys safe offline and ride it out.
Bitcoin Cash and Monero are my top picks.