Don’t dismiss bankers’ predictions of a bitcoin bubble – they should know

  • Jamie Dimon, the chief executive of JP Morgan, said last week that the ascendancy of the virtual currency bitcoin – which has risen in price from just over $2 in 2011 to more than $4,000 at points this year – reminded him of tulip fever in 17th-century Holland.
  • Taking out a mortgage denominated in bitcoins is not advisable and, luckily for those stupid enough to try it, you won’t find a high street bank willing to underwrite it.
  • But some of the perceived flaws behind bitcoin that alarm Dimon – no central authority, a public ledger of transactions – point to the foundations of a new financial establishment.
  • Dimon, a modern high priest, faces a rival value system in bitcoin.
  • Households might cope with a move to 0.5%, but if a rate increase augurs a sustained move against cheap borrowing and persistent inflation, then a wider rethink of ambitions, from getting further up the housing ladder to buying a new car, will be needed.

The virtual currency’s success reflects the continuing lack of trust in traditional banking following the credit crunch
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JPMorgan CEO says bitcoin is for murderers, drug dealers, and North Korea – VICE News

JPMorgan CEO says bitcoin is for murderers, drug dealers and North Korea

  • That’s the opinion of Jamie Dimon, the billionaire CEO of America’s biggest bank JPMorgan Chase, who said he’d fire any employee he caught trading the cryptocurrency.
  • Dimon’s thrashing of bitcoin sent its price plummeting Wednesday, but despite the very public criticism of the world’s most valuable cryptocurrency, Dimon and JPMorgan continue to be a leader in the financial world in implementing new technologies based on the blockchain, the distributed ledger technology that underpins bitcoin.
  • A day after he made the remarks, the price of bitcoin has dropped from $4,250 to $3,790, dipping below the $4,000 mark for the first time in over a month.
  • Bitcoin’s value has soared in 2017, from less than $1,000 at the turn of the year.
  • READ: Bitcoin is about to blast past $5,000 — and that’s a problem

Bitcoin is a scam and it’s only useful for drug dealers, murderers, and North Korea. That’s the opinion of Jamie Dimon, the billionaire CEO of America’s biggest bank JPMorgan Chase, who said he’d fire any employee he caught trading the cryptocurrency. Dimon’s thrashing of bitcoin sent its price plummeting […]
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Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero

  • There is an equilibrium value for bitcoin which is zero, like all fiat currencies,” he said.
  • Buiter thinks bitcoin is purely speculative and “not something that ordinary mortals should get anywhere near” and contrasted it to fiat money and gold, which he previously said he would own as part of a diversified portfolio.
  • “Gold has some intrinsic uses, fiat currencies issued by the government have at least a central bank that attempts to stabilize their value in terms of goods and services,” he said.
  • And despite his opposition to bitcoin, Buiter is a fan of blockchain technology and thinks it may be used by central banks in the future to settle cross-border transactions.
  • “We don’t know how well it will scale, but it could be very useful for transactions between central banks, for cross border transactions, for entities that currently use centralized ledgers to make such transactions,” he said, calling bitcoin an “unfortunate start” to the whole blockchain revolution.

  Despite working for the biggest bank in the world, Willem Buiter is not a fan of money. He called gold a 6,000-year bubble and thinks fiat currencie
Continue reading “Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero”

Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022

  • Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
  • This “implies significant rise [in] institutional holdings of Bitcoin in next 6-8 months given recent approvals,” he said.
  • Last month, he said bitcoin could be worth up to $55,000 by 2022, adding that cryptocurrencies are “cannibalizing demand for gold.”
  • Investing legend Bill Miller reportedly owns bitcoin, and Josh Brown, CEO of Ritholtz Wealth Management and a CNBC contributor, said last month he used Coinbase to buy bitcoin as a learning exercise.
  • “We see bitcoin as gaining from institutional sponsorship, improving transaction platforms and ultimately, greater public adoption,” Lee added.

Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
Continue reading “Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022”

Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero

@Citi chief economist Willem Buiter not a fan of #Bitcoin, do his arguments have any merit?

  • There is an equilibrium value for bitcoin which is zero, like all fiat currencies,” he said.
  • Buiter thinks bitcoin is purely speculative and “not something that ordinary mortals should get anywhere near” and contrasted it to fiat money and gold, which he previously said he would own as part of a diversified portfolio.
  • “Gold has some intrinsic uses, fiat currencies issued by the government have at least a central bank that attempts to stabilize their value in terms of goods and services,” he said.
  • And despite his opposition to bitcoin, Buiter is a fan of blockchain technology and thinks it may be used by central banks in the future to settle cross-border transactions.
  • “We don’t know how well it will scale, but it could be very useful for transactions between central banks, for cross border transactions, for entities that currently use centralized ledgers to make such transactions,” he said, calling bitcoin an “unfortunate start” to the whole blockchain revolution.

  Despite working for the biggest bank in the world, Willem Buiter is not a fan of money. He called gold a 6,000-year bubble and thinks fiat currencie
Continue reading “Citigroup Chief Economist on Bitcoin: Equilibrium Value Is Zero”

Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022

  • Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
  • This “implies significant rise [in] institutional holdings of Bitcoin in next 6-8 months given recent approvals,” he said.
  • Last month, he said bitcoin could be worth up to $55,000 by 2022, adding that cryptocurrencies are “cannibalizing demand for gold.”
  • Investing legend Bill Miller reportedly owns bitcoin, and Josh Brown, CEO of Ritholtz Wealth Management and a CNBC contributor, said last month he used Coinbase to buy bitcoin as a learning exercise.
  • “We see bitcoin as gaining from institutional sponsorship, improving transaction platforms and ultimately, greater public adoption,” Lee added.

Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
Continue reading “Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022”

Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022

  • Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
  • This “implies significant rise [in] institutional holdings of Bitcoin in next 6-8 months given recent approvals,” he said.
  • Last month, he said bitcoin could be worth up to $55,000 by 2022, adding that cryptocurrencies are “cannibalizing demand for gold.”
  • Investing legend Bill Miller reportedly owns bitcoin, and Josh Brown, CEO of Ritholtz Wealth Management and a CNBC contributor, said last month he used Coinbase to buy bitcoin as a learning exercise.
  • “We see bitcoin as gaining from institutional sponsorship, improving transaction platforms and ultimately, greater public adoption,” Lee added.

Bitcoin has had a stellar year and one of Wall Street’s top strategists thinks it can rise 40 percent more by next year.
Continue reading “Wall Street strategist Tom Lee sees bitcoin surging to $6,000 next year, $25,000 by 2022”