JP Morgan’s MD Says Cryptocurrencies Only Have Value in a Dystopia

JP Morgan’s MD Says Cryptocurrencies Only Have Value in a Dystopia
ôîòî ïîêàçàíî ñ : blokt.com

2019-1-28 16:45

Managing director of JP Morgan, Jan Loeys said that Bitcoin would only be useful if there was a complete loss of faith in all major reserve currencies including gold.

The firm remains skeptical about the value of digital currencies and suggests that Bitcoin could go as low as $1,260.

Bitcoin in a Dystopian Environment

Jan Loeys believes that in a dystopian situation, where people have lost faith in all major currencies of the world, Bitcoin may come in handy.

According to Loeys, if the dollar, euro, yen and even gold lose their value and user’s faith, Bitcoin has a chance to thrive.

Unless that happens, JP Morgan is doubtful of the coin’s value and future. They believe investors should look for other safe havens in the meantime.

In a note to clients this week, Loeys wrote:

“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets.”

Some Bitcoin backers have talked about using the digital asset to diversify portfolios, given its low correlation with other asset classes and potentially high returns.

Loeys noted that the developments in the crypto sector over the last year had not changed their perspective on the role of Bitcoin in global portfolios.

He noted, however, that cryptocurrencies novelty value can “remain high indefinitely.”

Why Does JP Morgan Have Reservations?

The Wall Street giant provided two reasons behind this Bitcoin skepticism.

Firstly, cryptos are an emerging financial asset class showing bubble-like properties, given its past risk-return profile. Its behavior is similar to tech stocks in the 1990s.

Secondly, Bitcoin could not outperform the equity market in 2015 and 2018 during drawdowns. The bank cites that it could have happened because of overvaluation of the asset.

Loeys wrote that even in extreme cases of financial crises or recession, there are many less complicated and more liquid instruments available for transactions, investments, and hedging because fiat currencies enjoy huge scale from having legal tender status.

JP Morgan’s MD Says Cryptocurrencies Only Have Value in a Dystopia was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.

origin »

Bitcoin (BTC) íà Currencies.ru

$ 102310.46 (+0.41%)
Îáúåì 24H $83.435b
Èçìåíåèÿ 24h: 0.66 %, 7d: -0.46 %
Cåãîäíÿ L: $101238.87 - H: $102702.4
Êàïèòàëèçàöèÿ $2027.387b Rank 1
Öåíà â ÷àñ íîâîñòè $ 3454.53 (2861.63%)

bitcoin value only morgan currencies says cryptocurrencies

Èñòî÷íèê: blokt.com

bitcoin value → Ðåçóëüòàòîâ: 126


Analyst Predicts Bitcoin Bull Run: MVRV Metric Hints At $95K To $120K Target

The Bitcoin price action has sparked renewed interest among analysts and investors as the cryptocurrency approaches a major event (the US election) later in November. A CryptoQuant analyst known as CoinLupin recently provided an analysis on the CryptoQuant QuickTake platform, focusing on Bitcoin’s Market Value to Realized Value (MVRV) ratio, a metric often used to gauge Bitcoin’s value compared to its on-chain fundamentals.

2024-11-5 04:30


Ôîòî:

Beyond Store of Value – How Can Bitcoin Be A Viable Medium of Exchange and Unit of Account?

How can a good store of value (SoV) also be a good medium of exchange (MoE) and unit of account (UoA)? Seems too perfect, right? With Bitcoin expected to rise in value forever, wouldn't it be prohibitive to use Bitcoin for paying for things? This perspective comes from measuring Bitcoin's value in an inferior, depreciating […] The post Beyond Store of Value – How Can Bitcoin Be A Viable Medium of Exchange and Unit of Account? first appeared on BitcoinExchangeGuide.

2021-10-14 20:45


Ôîòî:

Bitcoin’s Value Surpasses $23,700, Critics Claim Its a ‘Bubble,’ Onchain Analyst Says $100K Prices ‘Ridiculously Low’

The crypto economy has gained a massive amount of value during the last few days, as the aggregate market cap of all 7,500+ digital assets is a whopping $640 billion on Thursday. Meanwhile, the largest blockchain in terms of valuation, bitcoin has touched an all-time high of $23,777 rising more than 22% in 24 hours.

2020-12-17 18:45


Ôîòî:

Bitcoin Smacks Three of America’s Biggest Finance Firms to Sit at First Place in Market Valuation

Bitcoin’s evolution as an asset of great value has been reflected many times in the swiftness at which the asset has surpassed a large number of already existing firms in the financial industry. Against other assets that have taken the title as “store of value,’ Bitcoin has also shown immense strength in adding and retaining […]

2020-11-4 15:07


Looking At Gold, Should We Remain as Confident as Ever in Bitcoin’s Long-term Value?

In the past month, Bitcoin lost 50% of its value following the stock market, oil, Treasuries, and even gold as the coronavirus continues to spread. Central banks around the world have injected billions of dollars but the global markets are still taking a beating with broad falls across multiple sectors. This past week, bonds, US […]

2020-3-18 22:16


äàëüøå åùå 77 íîâîñòåé →

Ïàðòíåðû Currencies.ru



Ðåêëàìà íà Currencies.ru

Ñàìîå ñâåæåå íà Currencies.ru

Nasdaq Proposes In-Kind Redemptions for BlackRock’s Bitcoin ETF

Nasdaq has proposed a new system for BlackRock's iShares Bitcoin ETF, allowing institutional investors to redeem shares directly for bitcoin instead of cash. This innovative model aims to streamline operations, cut costs, and reduce market impact, marking a significant step forward in the evolution of Bitcoin ETFs.