Jamie, u mad bro? Oh, u mad.

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.

About coinspeak

20 years as an IT consultant. Escaped the rat race in 2015. Addicted to travel and tacos.

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7 comments

  1. Greatness as always, en1gma. Much appreciated. Is there an easy way to move Monero into cold storage? Thanks.

    • Trezor and Ledger are the two leading hardware wallets. Ledger has Monero integration in the pipeline now. https://www.ledgerwallet.com/

      I have a trezor.

      • Understood. Until Trezor supports Monero, are you cool with keeping your coins on Kraken?
        Thanks.

        • The bad news is there is no hardware wallet for XMR now. The good news is when there is one XMR should moon. I have an IT background so I store my coins that aren’t supported by a hardware wallet on a computer with appropriate security measures. It’s a weakness in crypto, but not impossible to overcome.

          Storing on an exchange is a bad idea but may be preferable to storing locally depending on resources / familiarity with security.

  2. Same question for other alt-coins. How to store offline. Thx

  3. China controls gold and bitcoin. China realizes blockchain is too much power to not control. Why would any printer allow something to take power away from fiat. They change from fiat to another fiat base on blockchain they can control.

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