Banks Warn Against Bitcoins
Many financial experts advise against cryptocurrency. On the other hand, JP Morgan Chase is making a 180 degree turn towards Bitcoin.
More and more financial gurus think that Bitcoin is unstoppable despite warnings from Banks. Financial experts can’t stop the trend therefore advise traders to trust only safe and legit Bitcoin trading apps. Bitcoins are already rumoring that it will break the $10,000 mark by the end of the year.
Banks Warn Against Bitcoins
But even if this is a very ambitious goal, certain unrest is spreading in the traditional financial business. It is striking that there are currently two “currents” – while some firmly insist that digital money is a bubble that will soon burst, others are gradually rethinking it. The success of Bitcoin, which has been going on for months, has not left them untouched either.
Banks say that Bitcoins are too volatile and not regulated enough. Bitcoin is now facing a powerful headwind from Banks. Even though Bitcoin is being closely monitored, banks strongly advise against getting involved.
The reason for this is the extreme fluctuations of the cryptocurrency. An example, the Bitcoin price fell by 500 dollars (about 420 euros) within two hours – only to shoot up again almost in the same time. Allegedly, a vulnerability at a competitor was to blame. In addition, the currency is considered insufficiently regulated. Most recently, the price was still at a record high of 8,200 dollars (approx. 6,920) euros at the beginning of the week, now (on November 23) it is again at almost 7,000 euros.
The sudden surge is said to have come about because investors are hoping that Bitcoin will soon be traded on the world’s largest futures exchange for financial derivatives, CME, in Chicago. Has that also caused JP Morgan Chase to rethink its attitude towards digital currency? After all, the major US bank has now shown a true 18-degree turn.
US bank JP Morgan Chase: Once a crypto opponent, now thick in the Bitcoin business?
Just a few months ago, their boss, Jamie Dimon, ranted at a conference that he believed Bitcoin was pure “fraud”. Other investment legends like Warren Buffett and even the one-time “Wolf of Wall Street”, Jordan Belfort, followed suit. Traditional finance is believed to see cyber money as an emerging and therefore dangerous competitor.
But now, according to the Wall Street Journal, it has become known that JP Morgan is considering allowing customers to speculate on the Bitcoin price using so-called futures contracts. With these, investors could hedge against price fluctuations of the cryptocurrency in the future.
This is entirely in the spirit of JP Morgan Chase, said CFO Marianne Lake back in October. After all, the big bank was basically open to digital currencies, it was said at the time – as long as they are properly regulated.
Experts believe, however, that JP Morgan’s blatant change of course has to do with the fact that Wall Street bankers can no longer stand sitting still – and also want their piece of the big Bitcoin pie.Tags: banks and crypto, crypto trading