NEWS
EVENTS
JP Morgan says Bitcoin a "Fraud" and price drops. Should you invest?
Thursday 14th September 2017 | Osh
The CEO of JP Morgan, Jamie Dimon, caused a dip in the price of Bitcoin with remarks that the cryptocurrency is a “fraud” that would “blow up”.
His statement did not hold much weight for people for those that are already invested and that understand how the digital currency works. Of course a 25% dip is a huge dip, but Bitcoin has suffered setbacks like this before and gone on to rise in value again. The CEO also threatened to fire any employee of the company caught trading the worlds most popular cryptocurrency.
No one knows the future and you should never invest what you can't afford to lose.
This is not financial advice, but here are a few reasons you may still want to bag yourself some Bitcoin.
The value.
- The price only dipped to around $4000 from an all time high of around $5000
- To put that in perspective it was $600 a year ago, so if you invested then you would still have made a huge gain.
- In September 2015, one Bitcoin was worth $236. If we went back any further you may start to feel a little queezy with regret that you didn't study computer science.
The FUD.
- There is much talk of "Fear, Uncertainty, and Doubt". This may be for a few reasons. The huge gains that have been possible make investment in the stockmarket look... well, boring. The volatility of Bitcoin makes it an intriguing if not exciting investment opportunity. What happens if people take their money out of the stockmarket and into crypto? The banks lose. What about if people move their savings? The banks lose. Cryptocurrency investors can also benefit from FUD. It would not be suprising if at least a handful of JP Morgan executives purchased some Bitcoin at the new deflated price. After all, it was alleged that Equifax employees dumped stock ahead of releasing news of the hacking of the organisation.
China.
- China recently banned Inital Coin Offerings (ICO). ICO's are where a business offers shares of the company by investors purchasing tokens, or 'coins' ahead of the actual shares becoming available on the market. Billions have been raised from ICO's this year alone. China has said it was to prevent money laundering and illegal activities. It is very possible regulation will soon follow. China has in the past banned trading of Bitcoin with the Yuan. The price dropped but it soon returned to record levels once the ban was reversed.
Stability.
- A finite supply of Bitcoin sets it apart from fiat currencies that central banks can print as and when deemed necessary or beneficial.
- There has been heightened interest and a vast increase in the use of the cryptocurrency in Venezuela due to the huge depreciation of their national currency resulting from the ongoing US led financial blockade, so much so that Venezuela aim to establish thier own cryptocurrency.
- More and more merchants are choosing to accept Bitcoin as a form of payment. You can now buy land, homes, cars, flights, and electrical goods.
As we stated earlier, this is not financial advice. Make sure to do your own research. And while you are at it, look at some of the other cryptocurrencies that have themselves created quite a few millionaires. As they say in the world of investment, buy when everyone is scared and sell when they are all buying!
