FacebookTwitterGoogle+RedditEmail

JPMorgan Chase is Right to Fear Cryptocurrency

When JPMorgan Chase CEO Jamie Dimon called Bitcoin a “fraud,” what ensued looked a lot like a “poop and scoop” con: The practice of driving down a thing’s price by saying bad things about it, then buying up a bunch of it before the price bounces back. After Dimon’s comments, JPMorgan briefly became one of the cryptocurrency’s biggest buyers. The company claims it was purchasing Bitcoin on behalf of clients, not as corporate policy, but it looked bad.

Now Dimon is badmouthing cryptocurrency again. And, as before, he clearly either has no idea what he’s talking about or has sinister motives.

“It’s creating something out of nothing that to me is worth nothing,” Dimon told CNBC. “It will end badly.” He also warned that as cryptocurrencies become more popular, government crackdowns will drive them into the black market (that’s happening in China right now).

The key words in Dimon’s “to me [it’s] worth nothing” are “to me.” Value is subjective. What’s a thing worth? Whatever it’s worth to you, or to me, or to Jamie Dimon. Each of us may find that thing more valuable, or less, than do the other two.

Dimon considers cryptocurrency “worth nothing” for one reason only: Because his company — the largest bank in the United States and among the largest in the world — doesn’t control it. And that’s one of several reasons why others find it very valuable indeed.

Cryptocurrencies run on blockchains, “distributed ledgers” without central authorities. Dimon prefers fiat currencies, which are created by governments, managed by central banks, and funneled through institutions like his, legally privileged choke points taking generous rake-offs from wealth created by others but forced to pass through them.

Neither crypto nor fiat currencies are backed by physical commodities like gold or silver, but the resemblance ends there. Crypto is backed by the work of maintaining its ledgers, called by the imaginative name “mining.” Fiat currency is backed only by your trust in the governments (and the Jamie Dimons) of the world.

“Creating money out of thin air without government backing is very different from money with government backing,” he says. He’s right. Money with government backing pays Jamie Dimon. Cryptocurrency threatens his business, his paycheck and his way of life.

His prediction of government crackdowns isn’t just a prediction, it’s a fervent wish. He’s desperate to see cryptocurrency crushed, unless he can find a way to force it through the JPMorgan toll booth.

Dimon should be careful what he wishes for. If cryptocurrency is forced entirely into the “black market,” that market will, sooner or later, bury his. His only chance is to co-opt blockchain and cryptocurrency methods into the fiat system. Here’s hoping he fails.

More articles by:

Thomas L. Knapp is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

Weekend Edition
August 17, 2018
Friday - Sunday
Daniel Wolff
The Aretha Dialogue
Nick Pemberton
Donald Trump and the Rise of Patriotism 
Joseph Natoli
First Amendment Rights and the Court of Popular Opinion
Andrew Levine
Midterms 2018: What’s There to Hope For?
Robert Hunziker
Hothouse Earth
Jeffrey St. Clair
Roaming Charges: Running Out of Fools
Ajamu Baraka
Opposing Bipartisan Warmongering is Defending Human Rights of the Poor and Working Class
Paul Street
Corporate Media: the Enemy of the People
David Macaray
Trump and the Sex Tape
CJ Hopkins
Where Have All the Nazis Gone?
Daniel Falcone
The Future of NATO: an Interview With Richard Falk
Cesar Chelala
The Historic Responsibility of the Catholic Church
Ron Jacobs
The Barbarism of US Immigration Policy
Kenneth Surin
In Shanghai
William Camacaro - Frederick B. Mills
The Military Option Against Venezuela in the “Year of the Americas”
Nancy Kurshan
The Whole World Was Watching: Chicago ’68, Revisited
Robert Fantina
Yemeni and Palestinian Children
Alexandra Isfahani-Hammond
Orcas and Other-Than-Human Grief
Shoshana Fine – Thomas Lindemann
Migrants Deaths: European Democracies and the Right to Not Protect?
Paul Edwards
Totally Irrusianal
Thomas Knapp
Murphy’s Law: Big Tech Must Serve as Censorship Subcontractors
Mark Ashwill
More Demons Unleashed After Fulbright University Vietnam Official Drops Rhetorical Bombshells
Ralph Nader
Going Fundamental Eludes Congressional Progressives
Hans-Armin Ohlmann
My Longest Day: How World War II Ended for My Family
Matthew Funke
The Nordic Countries Aren’t Socialist
Daniel Warner
Tiger Woods, Donald Trump and Crime and Punishment
Dave Lindorff
Mainstream Media Hypocrisy on Display
Jeff Cohen
Democrats Gather in Chicago: Elite Party or Party of the People?
Victor Grossman
Stand Up With New Hope in Germany?
Christopher Brauchli
A Family Affair
Jill Richardson
Profiting From Poison
Patrick Bobilin
Moving the Margins
Alison Barros
Dear White American
Celia Bottger
If Ireland Can Reject Fossil Fuels, Your Town Can Too
Ian Scott Horst
Less Voting, More Revolution
Peter Certo
Trump Snubbed McCain, Then the Media Snubbed the Rest of Us
Dan Ritzman
Drilling ANWR: One of Our Last Links to the Wild World is in Danger
Brandon Do
The World and Palestine, Palestine and the World
Chris Wright
An Updated and Improved Marxism
Daryan Rezazad
Iran and the Doomsday Machine
Patrick Bond
Africa’s Pioneering Marxist Political Economist, Samir Amin (1931-2018)
Louis Proyect
Memoir From the Underground
Binoy Kampmark
Meaningless Titles and Liveable Cities: Melbourne Loses to Vienna
Andrew Stewart
Blackkklansman: Spike Lee Delivers a Masterpiece
Elizabeth Lennard
Alan Chadwick in the Budding Grove: Story Summary for a Documentary Film
FacebookTwitterGoogle+RedditEmail