On the surface this seemed to be a big change from the one major, money center U.S.
Since JPMorgan is one of the shareholders of the New York Federal Reserve Bank, you really can’t blame him for “talking his book,” just like Lagarde or another famous bitcoin hater, Charlie Munger of Berkshire Hathaway.
The first thing to remember is that this is a so-called “sell side” analyst’s note, meaning it is the opinion of analysts within JPMorgan of where investors should put their money preferentially under current market conditions.
“Blockchain is real.
There are a lot of ideas in these quotes from Dimon.
For the past 14 years, for the most part, the Federal Reserve has kept interest rates near the zero-bound.
NIM is simply the difference between what the bank pays you for your deposits to loan them out to investors at a higher rate.
Enter the sell-side talking up bitcoin at crucial moments in the market.
Bitcoin is big business now and with the shift in hashing power from China to the U.S.
Of course, nothing could be further than the truth.
Bitcoin, and cryptocurrencies in general, are fighting an insurrectionist fight attempting to reverse the wealth extraction dynamic of the existing system.
This is what best explains the mixed signals coming from his organization.
Men like Dimon and the World Economic Forum’s Klaus Schwab will fight tooth and claw to remain relevant players going forward.
This is the real promise of bitcoin and JPMorgan’s high-net-worth investor clients are finally, for the first time in decades, truly becoming scared of where things are headed financially.
But, other members of the New York Boys club were, like Larry Fink of Blackrock and Brian Moynihan of Bank of America, to name a couple.
The way in which both of them appear to succeed in the short-term will be frustrating as hell for bitcoin enthusiasts to watch.
Never in the history of capital markets have commodity prices been this cheap relative to that of equities or debt assets.