At a banking industry conference yesterday, JP Morgan CEO Jamie Dimon denounced bitcoin as a fraud and a bubble. In the wake of his remarks, bitcoin prices fell by about 2% yesterday.
Please see the below quotes in response from experts in the cryptocurrency industry
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Additionally, China is shutting down domestic bitcoin exchanges. Steve Nadel, attorney at Seward & Kissel says: “Since a lot of the technology in this area seems to be coming out of China, it isn’t all that surprising that China has taken a lead here from a regulatory standpoint. I would imagine that China and other countries will work together to come up with proposed regulations and guidelines to achieve stable and safe global financial markets.”
Some additional comments by Steve Nadel, leading hedge fund attorney and partner at Seward & Kissel LLP in New York.
“I think the drop over the past few days is due in part to China’s concerns over ICO fraud, but may also be the result of some recent news about thefts from individual cryptocurrency accounts and the hacking of actual blockchains. So clearly, the theme of concern here is criminality.”
“The result of these events will, in my opinion, result in the short-term, greater self-policing and a devotion of significant assets by industry players to eliminate these criminal issues. In the long term, after relevant studies are done, we should expect more regulation and coordinated industry protocols.”
“I imagine the SEC is watching this matter closely, as they have already issued a report on ICOs, and they will no doubt consider whether further action is needed.”
Bharath Rao, CEO of Leverj
The value proposition of bitcoin and the crypto ecosystem is that it is provably compliant with its own rules. The confidence that the rules of the system are mathematically infeasible to break
brings a strong confidence in participation and more importantly, obsoletes the need for intrusive regulation. The price of bitcoin in particular and the sustained increase in market cap of crypto in general is simply the general public waking up to this amazing value proposition of replacing proof of violence with proof of work. Crypto will eventually be a very large part of global finance as entrepreneurs figure out how to extend the robust properties of crypto into other areas of finance.
These are the very first rays of light on the dawn of a new era, the beginning of the beginning. The ones who have the vision and courage to step in and shape the future will be handsomely rewarded and those who shudder and fear this unstoppable force are choosing to be obsolete with their archaic systems.
Scott Nelson, CEO and Chairman of Sweetbridge
Bitcoin may be a bubble and it may be replaced in the future by other cryptocurrencies. But comments like Jamie's show a failure to grasp the significance of the blockchain and the power of brand in a fundamental sea of change.
I seem to remember people making similar comments about Facebook when it had no revenue. The value of Bitcoin is not intrinsic to the coin it is in what it allows us to do. Freedom is not going away no matter how hard people wish it would.