Showing posts with label Jamie Dimon. Show all posts
Showing posts with label Jamie Dimon. Show all posts

December 20, 2017

The cryptocurrency market is now doing the same daily volume as the New York Stock Exchange

By Oscar Williams-Grut - December 20, 2017 (www.businessinsider.com)

Traders on the floor of the New York Stock Exchange on December 6
REUTERS/Brendan McDermid

  • Global volume in cryptocurrency markets has passed $50 billion, close to the average turnover on New York Stock Exchange.
  • The comparison is inexact but highlights just how popular digital currencies have become.


LONDON — Global cryptocurrency markets are now averaging the same daily trading volumes as the New York Stock Exchange.

Twenty-four-hour trade volume in the cryptocurrency market passed the $50 billion mark on Wednesday, according to the data provider CoinMarketCap.com.

That is close to the average daily volume of trade on the New York Stock Exchange this year. Daily trading volumes on the London Stock Exchange hover at about £5 billion, or $6.7 billion.

The comparison is inexact, as the cryptocurrency market is arguably closer to the foreign-exchange market, which has daily volumes of over $5 trillion.

But it highlights just how hot the cryptocurrency market has become in 2017. Unlike the foreign-exchange market, cryptocurrency trading is largely done by small-time, retail investors, making it closer to the stock market (though some huge institutions are playing in the market.)

Investors have flocked to cryptocurrencies in 2017 because of the eye-catching returns of bitcoin, which has grown by about 1,500% against the dollar. A boom in so-called initial coin offerings, in which startups issue their own cryptocurrencies to raise money, has created a raft of other digital assets for investors to speculate on. There are now more than 1,300 cryptocurrencies in circulation, according to CoinMarketCap.com.

But many people within the financial industry have expressed concern about the largely unregulated market. The UK's top financial regulator warned earlier this month that people should be prepared to lose all the money they invest in bitcoin, and JPMorgan CEO Jamie Dimon has called cryptocurrencies a "scam."

December 14, 2017

The Bitcoin bubble – how we know it will burst

December 07, 2017 (theconversation.com)

Ready to pop? Adam Dachis/flickr, CC BY

In the last year, the price of Bitcoin has increased from less than US$800 to more than US$12,000. This huge spike in value has many asking if it is a bubble or if the high price today is here to stay.

Finance defines a bubble as a situation where the price of an asset diverges systematically from its fundamentals. Investment mogul Jack Bogle says there is nothing to support Bitcoin, and the head of JP MorganChase, Jamie Dimon has called it a fraud “worse than tulip bulbs”.

Like any asset, Bitcoin has some fundamental value, even if only a hope value, or a value arising from scarcity. So there are reasons to hold it. But our research does show that it is experiencing a bubble right now.

Together with Shaen Corbet at Dublin City University, we took as the fundamentals of Bitcoin elements of the technology that underpins it (and other cryptocurrencies). We looked at measures, which represent the key theoretical and computational components of how cyrptocurrencies are priced.

New Bitcoin is created by a process of mining units called blocks. Bitcoin is built on blockchain technology – a digital ledger of transactions – which enables the currency to be traded independently from any central banking system, without risk of fake or duplicate Bitcoins being used. Instead of having a bank verify pending transactions (a “block”), miners check them and, if approved, the block is cryptographically added to the ever-expanding ledger.

So the first measure we examined relates to mining difficulty. It calculates how difficult it is to find a new block relative to the past. As per the Bitcoin Protocol, the number of Bitcoin is capped at 21m (there are currently 16.7m in circulation). This means that as more people mine for Bitcoin and more blocks are created, each block is, all things being equal, worth less than the previous block.

Bitcoin mining affects the cryptocurrency’s values. shutterstock.com

The second measure we looked at relates to the “hash rate”. This is the speed at which a computer operates when mining. To successfully mine Bitcoin, you must come up with a 64-digit hexadecimal number (called a “hash”), which is less than or equal to the target hash. The faster you can do this, the better chance you have of finding the next block and receiving payment.

The third measurement was “block size”. This relates to how large the chain is at any given time, with larger chains taking longer to mine than shorter ones.

And lastly we looked at the volume of transactions conducted. Any asset, in particular any currency, which is more widely used will be more valuable than one which is used less frequently.

In our study, we examined data from Bitcoin’s early days – from July 2010 to November 2017. The price of one Bitcoin did not rise above US$1 until April 16, 2011, then to US$10 on June 3, 2011 and US$100 on April 2, 2013. Since then the price rise has clearly been exceptional.

Price of Bitcoin

Source: Data: investing.com






We then applied an accepted method that is used to detect and date stamp bubbles after they burst. In essence, this involves identifying the existence of an explosive component in a series. As the series, here the price of bitcoin, “explodes”, it runs the risk, like any explosion, of flying apart.

A possibly counter-intuitive result of this approach is that if a fundamental driver and the price of an asset both show an explosive component, we might not conclude a bubble is present. A bubble is when something deviates from its fundamental value. If the fundamental value is itself growing explosively then the price would also.

Think of dividends on a stock. If, somehow, these were to grow at an explosive rate we might expect to see the price do the same. While unsustainable, this is not technically a bubble. To overcome this, we then date stamp a bubble as being present when the price shows an explosive component and the underlying fundamentals do not.

Here are the results of the analysis:

The Bitcoin Bubbles. Authors own calculations


The orange lines denote when the price is showing explosive behaviour. We also see a period where the hash rate was growing explosively – the blue columns in late 2013 and early 2014. This is also an indication of a price bubble, which went on to burst.

So there are clear points where bubbles are visible – including now. The price of Bitcoin at present shows explosive behaviour in the absence of anything similar in its fundamentals. We see the price moving upwards in a manner that is not related to the technical underpinnings. It is a clear bubble.

A weakness of these tests and indeed all bubble identification tests is that they take place after the bubble has burst. Even this test, which can be redone as swiftly as new data arrives, is such. Bubbles by their nature grow in a compound manner – so even a day or two delay in addressing the situation can make a bubble significantly worse.

What is not yet available is an accurate advanced warning bubble indicator. In its absence, this approach may be the best. Unfortunately, we cannot use this approach to determine the extent of the bubble. There is no well-accepted model that suggests a “fair” value for Bitcoin. But whatever that level is, it is almost certain that, at present, it is well below where we are now.

November 27, 2017

United Arab Emirates Fund CEO throws shade at JP Morgan’s Jamie Dimon

By C. Edward Kelso - November 27, 2017 (news.bitcoin.com)


شركة مبادلة (Mubadala Development Company PJSC), an Abu Dhabi-based state holding company, appears receptive to the global phenomenon sweeping through professional finance circles that is bitcoin. Its CEO, when asked about Jamie Dimon’s comments calling the decentralized currency a “fraud” that will “blow up,” answered that it was too soon to dismiss Satoshi’s creation. 

Jamie Dimon Dismissal Dismissed


“I have still have not formed a clear view on this,” Khaldoon Khalifa Al Mubarak, CEO and Managing Director of the Abu Dhabi company, began with regard to the technology undergirding bitcoin. “We’re still getting educated on this. The area I would have concern on, still, is the regulatory side. How is this going to be regulated?” he asked rhetorically.

Mubadala is an Abu Dhabi state holding company operating within a joint-stock scheme with assets well above 100 billion USD. The fund is proposed as “a pioneering global investor, deploying capital with integrity and ingenuity to accelerate economic growth for the long-term benefit of Abu Dhabi,” according to its website.


“Because I think blockchain,” Mr. Al Mubarak continued, “its growth, let’s say, from single digits to double digits to astronomical growth, will really depend on how fast you can execute, and will you be able to execute under a regulatory environment that is acceptable. I think if they’re able to crack that, I think it’s going to be an incredible story. But, to date, I’d say I am still on the fence.”

The CNBC interviewer then asked in follow-up: “What about bitcoin, because Jamie Dimon is calling it a fraud. Do you agree?”

“No. I wouldn’t agree in calling it a fraud,” Mr. Al Mubarak answered quickly. “I would say time will tell. It could well be and it could as well not be. I think one has to be open-minded.”


Khaldoon Khalifa Al Mubarak


Within the emirate, Khaldoon Khalifa Al Mubarak is a gadfly. He’s on hand for every important world-leader reception taken by Abu Dhabi’s President, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, from Bill Gates to bilateral talks with France.

Educated in the United States and young at 41, Mr. Al Mubarak spreads himself among many boards and directorships in and around Abu Dhabi. His willingness to at least entertain bitcoin and distributed ledger technology is an encouraging sign for those who wish for greater crypto adoption in the region.

Images courtesy of: Pixabay, Blogger, Wiki Commons. 

November 26, 2017

Bitcoin will be safe haven during next stock market crash, Says expert

By Gareth Jenkinson - November 26, 2017 (cointelegraph.com)


As Bitcoin powered ahead to a new high for a second week in a row, some have speculated that institutional investors could seek safe haven in the virtual currency in the future. The prevailing rhetoric over the past month has been more affirming than damning of cryptocurrencies, with the likes of Ronnie Moas and Max Keiser predicting new highs in 2018. Speaking to RT, eToro analyst Mikhail Mashchenko says financial institutions could look to Bitcoin if a major financial crash hits global markets.

“The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.”

Second-oldest bull market


The current bull market in stocks is the second-longest in history, according to Fortune, having lasted 104 months so far. The longest bull market in history ended in 2000 after an impressive 113 month run. With the current rally getting a bit long in the tooth, many on Wall Street are making contingency plans for the stock market’s inevitable turn. If Mashchenko is right, Bitcoin will have a role in some of these plans.

Shifting opinions


Mashchenko’s statements come on the back of changing sentiment in the mainstream financial sector. Last week, JP Morgan Chase announced plans to offer Bitcoin futures on the Chicago Mercantile Exchange - an important move by one of the biggest banking and financial services providers in America. Even more satisfying, this moves comes only months after Chase CEO Jamie Dimon condemned Bitcoin as a scam.

Online banking service providers and exchange operators LedgerX and Revolut are also adopting Bitcoin support. The former was recently cleared to offer Bitcoin derivatives as people look to do more than just trade the cryptocurrency.

“LedgerX launched its first long-term options for Bitcoin, with an expiration date of December 28, 2018. In the coming months, we will continue to see the ‘domestication’ of Bitcoin: the Chicago Board Options Exchange and the Chicago Mercantile Exchange are planning to launch tools based on the cryptocurrency in the near future.”

Big money


If and when a stream of institutional investors start investing large amounts of capital into cryptocurrencies, some of the stunning predictions made by Bitcoin bulls could well be realised. However, Mashchenko’s prediction was quite conservative, suggesting that Bitcoin reaching a $10,000 high by the end of 2017 would be driven by emotion rather than fundamentals:

“We could see a Bitcoin at $10,000 in a month or so. However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria.”

Having hit the $8,000 mark last week, Bitcoin surged another $1,000 dollars in just a few days, breaching the $9,000 level during the Thanksgiving weekend. At press time, the price of Bitcoin sits at $9,500, just $500 below Mashcenko’s predicted level.

November 24, 2017

JP Morgan is getting into Bitcoin Futures trading, Despite Jamie Dimon’s statement about Bitcoin’s fraud

BY Eugenia Kovaliova - November 22, 2017 (www.coinspeaker.com) 


JP Morgan, one of the largest banking institutions in the United States, is looking at allowing its clients to trade bitcoin futures, while its Chief Executive James Dimon stays negative to Bitcoin believing it’s a fraud.

According to the latest Wall Street Journal report, JP Morgan Chase & Co., a leading global financial services firm operating worldwide and the US largest banking institution, is considering whether to provide its clients access to CME’s new bitcoin product through its futures-brokerage unit. The final decision depends on JPMorgan’s customers’ demand.

The news can seem a bit contradictory if we remember JP Morgan’s Chief Executive James Dimon, stating that Bitcoin is a fraud, which became the most outspoken critic of Bitcoin on Wall Street. Moreover, on multiple occasions Dimon hinted that he believes digital currency is a bubble that will crash. On a conference last month he said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.

Dimon also said he would fire anyone caught investing in Bitcoin and seemed to be ready to fulfill the promise. His finance chief, Marianne Lake, has struck a more measured tone. Last month she said that the firm was open minded to the potential uses for digital currencies so long as they are properly regulated.

Surprisingly, that despite Dimon’s negative attitude to cryptocurrency, JPMorgan would be moving forward with plans to allow clients to trade in it through the bank.

The introduction of Bitcoin Futures Contract by the CME group, which is planned to be launched by the end of the year, was followed by Bitcoin’s new all-time high of $8336. The upswing was recorded on Monday, November 20. And the rate doesn’t seem to stop rising. According to the predictions of legendary hedge fund manager and a billionaire trader Michael Novogratz, Bitcoin can touch $10,000 by the end of this year.

Apart from CME Group, a few more Wall Street financial institutions have turned optimistic about Bitcoin’s future. One of such examples is LedgerX, a federally regulated exchange and clearinghouse, which has initiated the first-ever long-term Bitcoin futures ‘option’ pegged at a price of $10,000.

Bank of America Merrill Lynch has recently stated that bitcoin futures could help dampen the coin’s volatility:

“We would not overstate this, as a material reduction in volatility would require there to be a large community of speculators prepared to provide liquidity to the natural owners of the various coins, but given the volatility of the coin markets, maybe there already exists a cadre of participants who would look to short coins on strong days and vice versa, which could overall reduce volatility.”

Still, some experts continue to doubt that bitcoin futures would be positive for the markets, holding on to the point that such a product could ultimately destabilize the real economy.

November 04, 2017

Bitcoin is the “very definition of a bubble” - Credit Suisse CEO

By Francisco Memoria - November 04, 2017 (www.cryptocoinsnews.com)


At a time in which bitcoin reaches a new record high around the $7,500 mark and catapults the cryptocurrency market cap above the $200 billion mark for the first time in history, Credit Suisse CEO Tidjane Thiam makes it clear that he isn’t a fan of the cryptocurrency, as he stated it was the “very definition of a bubble” while speaking at a news conference in Zurich.

The CEO expressed caution as interest in bitcoin could eventually subside. He noted that right now people are buying the cryptocurrency expecting a price rise that will help them make money, not as a store of value, meaning it is a bubble. He notably stated:

“From what we can identify, the only reason today to buy or sell Bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble.”

Tidjane Thiam added that bitcoin currently presents a number of challenges, and expressed concern over its anonymity, as to him it is particularly problematic for financial institutions that, given the potential money-laundering risks, are likely not to get involved with the cryptocurrency. He added:

“Bitcoin presents a number of challenges. The first of them is really the anonymity. (…) I think most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges".

Analysts believe that more institutional investors are going to enter the cryptocurrency ecosystem, as one of the largest derivatives exchange in the world, CME Group, recently decided to launch bitcoin futures.

Given his words, Thiam now joins a list of bankers and Wall Street executives who believe bitcoin is a bubble. Among them are Berkshire Hathaway CEO and billionaire investor Warren Buffet, who warned there’s a “real bubble” in bitcoin as, according to him, the cryptocurrency cannot be valued because it isn’t a value-producing asset.

Earlier this year, JP Morgan CEO Jamie Dimon also criticized bitcoin by calling it a “a fraud” and stating he would fire anyone in his financial institution trading it. Later on, Dimon stated that the cryptocurrency was “worth nothing” before taking a third shot at the cryptocurrency and its investors, notably stating that anyone “stupid enough to buy [bitcoin] will pay the price.”

Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, also stated that bitcoin is a bubble, as it met his firm’s criteria for it., partly because some investors buy coins to later on sell them at a higher price, and because of its volatility.

On the other hand, some aren’t as dismissive of bitcoin. Goldman Sachs CEO Lloyd Blankfein recently told Bloomberg he wasn’t willing to “pooh pooh” the cryptocurrency, despite having a certain “level of discomfort with it” as is the case with anything new. Morgan Stanley CEO James Gorman also recently stated that bitcoin is “more than just a fad” that “isn’t inherently bad.”

Featured image from Flickr/Africa Progress Panel.

Posted by Francisco Memoria
Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. Twitter: https://twitter.com/FranciscoMemor

October 19, 2017

First world fat cat Jamie Dimon doesn’t understand poverty. Bashes Bitcoin

By Guest Author - October 20, 2017 (cointelegraph.com)

It’s said how little Jamie Dimon knows about the needs of people who live in the countries of South America, Central America, Africa and Asia.


Dimon keeps finding new ways to show his lack of understanding of Bitcoin, and of the economic realities of most of the world’s population. He recently said:

“If it can be done digitally with the Blockchain, so be it. But it will still be a dollar cryptocurrency. What I have an issue with is a non-fiat cryptocurrency. So crypto sterling, euro, yen, they are all fine. I don't personally understand the value of something that has no actual value.“

Fat cats


For an American millionaire with a narrow view of the world, he may be right. But for the inhabitants of more than 170 countries that do not have strong fiat currencies like sterling, euro, yen or dollars, Bitcoin definitely has value. An example from Brazil clearly demonstrates the benefits of transacting internationally with Bitcoin.

Developing countries are often saddled by their governments with capital controls, to prevent money from leaving the country.

Cost savings


A Brazilian who buys a product from Amazon pays a 6.5% “IOF Tax” retained directly on his credit card. This tax is levied on any international purchase or remittance of securities. In addition, this user is at the mercy of the exchange rate that will be applied by the operator of the credit card. Combined, transactional costs can exceed 10% of the purchase price, and that’s not even considering the import taxes that must be paid.

Now imagine a Brazilian who has decided to study the magnificent world of Blockchain and needs to buy a $100 item from Amazon. This person can use one of several Bitcoin-based websites to get a 15% discount on his purchase. Thus a $100 purchase, instead of costing $110 as it would by using his credit card, actually only cost $85. That’s a huge savings.

Does Bitcoin have any value to the mega-rich like Dimon? Probably not. But in the developing world, where a few dollars can literally make the difference between feast and famine, Bitcoin has real value.

Daniel Duarte