Just today Jamie Dimon laid into Bitcoin – again.
He’s going for a troll record.
He likened Bitcoin to other cryptocurrencies and called them all, including Bitcoin, a Ponzi scheme.
He stated that Bitcoin had been linked to sex trafficking, money laundering, ransom ware and theft.
My gosh, can’t we say the same for the US dollar?
I don’t see Jamie Dimon advocating for getting rid of the US dollar.
I’d like to know precisely how Bitcoin is a Ponzi scheme.
I have invested approximately $60,000 in Bitcoin, and my net value now is about half that.
How is that a Ponzi scheme?
Is Jamie Dimon saying that I am one of the later investors who who is being ripped off?
I don’t feel like I’ve been ripped off.
I invested in an instrument, and the instrument went down in value.
A few months before the crypto crash though, my investment had a net positive.
I knew the risks when I entered Bitcoin. I’m not complaining.
Can’t the same thing happen to the stock market?
Indeed, hasn’t the exact same thing happened in the stock market time and time again.
Is Jamie Dimon willing to call the stock market a Ponzi scheme?
I doubt it (although, ha ha, I do believe it is).
I think Jamie Dimon is confusing a Ponzi scheme with a bubble.
A bubble involves the greater fool theory where people pile into a hot market and make it go higher.
Eventually that bubble must burst.
But there’s nothing wrong with investing in a bubble as long as you retain what you pay for, and as long as no one misrepresented what you were purchasing.
A Ponzi scheme is quite different.
In a Ponzi scheme, the seller of the product typically absconds with your money and pays you a monthly or yearly return by attracting new investors.
This isn’t even close to being the case with Bitcoin.
When I invested in Bitcoin, nothing was promised to me, nor did I expect any annual return.
I had hoped that the value would go up over the years as more people used Bitcoin, and I still anticipate that it will go up.
But I don’t feel cheated because it has gone down in value.
It has gone down in value precisely because people like Jamie Dimon are driving it down by scaring the citizenry.
Jamie Dimon has no interest in seeing Bitcoin succeed.
He mistakenly perceives Bitcoin as a threat to his fiat currency.
Here’s a ticket on the clue train for Jamie Dimon: Bitcoin will not replace fiat currency just as gold will not replace fiat currency.
All Bitcoin does is give regular middle-class people a little bit of a buffer against inflation.
What is wrong with that?
Apparently that is too outrageous for Jamie Dimon and his friends.
You see, they don’t want any middle-class person being a potential threat to their rule.
They were infuriated when middle-class people suddenly became rich off Bitcoin.
So they had to put a stop to that.
Rather than encourage people to invest in Bitcoin, which would be a good thing for the people of the United States, Jamie Dimon asks people to invest in stable coins such as the JP Morgan stable coin.
The stable coin is sold to people on the basis of its reliability and non-volatility.
Ironically it was Terra USD, a stable coin, that crashed this past year which caused many people to lose their money.
Jamie says that better regulation will prevent that from happening again.
Sure, Jamie, I trust you.
Te amo, Jamie.
As to why anyone should trust JP Morgan, Jaime’s firm, when it regularly has to pay fines back to the federal government for scamming people, is anybody’s guess.
The main problem though with stable coins is that there is no fixed supply. Because there is no fixed supply, there is no protection against inflation.
Instead, the central planners will decide the exchange rate between your stable coin and the fiat currency that they are addicted to printing en extremis.
Essentially then stable coins are digital dollar bills.
How does that protect you?
Answer: It doesn’t.
In spite of this, Jamie Dimon carries a lot of weight in the financial universe. He will undoubtedly convince a lot of senators and representatives – his college chums, really – to put regulations in place that will hamper Bitcoin.
It’s too bad, really, because Bitcoin can work for the rich too.
It’s not like everyone is going to suddenly convert to Bitcoin.
After decades of being impoverished by Jamie and his Ivy League clowns, most people won’t have the extra money to put into Bitcoin, just as most people don’t have the extra money to put into gold.
But if they did have a little extra money, which is hopefully something we can work on some day, it would be a good thing for them to invest in a hedge against inflation.
That would help prevent these massive recessions, and that would benefit Jamie.
Unfortunately, he’s too ignorant of Bitcoin, too obsessed with oppressing people, too angry at middle-class people for making money on Bitcoin when he didn’t, and flat out too stupid to see it.
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