Is Jamie Dimon’s Bitcoin Review Hypocritical?
JPMorgan Chase Chairman and CEO Jamie Dimon said last week, âI personally think bitcoin is worthlessâ at an Institute of International Finance event. The utter hypocrisy of this statement is indicative of global bankers in general, as bitcoin is actually more controlled and more valuable than fiat paper like the US dollar.
As countries ditched the gold standard in an effort to alleviate concerns about leaks over federal gold supplies, many international currencies are now known as fiat. Fiat money is printed by a government or Federal Reserve Bank and is not backed by anything, just the illusion of value by the public’s confidence in the exchange of paper money between them for goods or services.
Recently, Dimon also told Axios that bitcoin has “no intrinsic value” and that “regulators are going to regulate the hell out of it.”
Unlike dollars, cryptocurrencies such as bitcoin are very durable, highly divisible, highly secure that cannot be counterfeited, very rare with predictable supply, highly decentralized, and also very programmable or ‘smart’.
In 1994, economist Paul Volker said: âIt is a sobering fact that the importance of central banks during this century has coincided with a general trend towards more inflation, not less. If the overriding objective is price stability, we have done better with the 19th century gold standard and passive central banks, with currency boards or even with âfree bankingâ. The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.
In fact, the Federal Reserve printed roughly $ 29 trillion, and 40% of all US dollars in existence today have been printed in the past 2 years alone. This is an obviously alarming rate that has increased monumental since the onset of COVID-19.
With all the uncertainty in the financial system, how can a small business in the United States grow?
The term âcrowdfundingâ was first used by FundaVlog founder Michael Sullivan in 2006. However, the concept of online fundraising began in the late 1990s as a way to sponsor events. Recently, the pandemic has sparked a major crowdfunding boom by small businesses looking for alternative sources of finance.
The Jump Start Our Businesses Startup Act – JOBS Act, which was enacted in 2012, paved the way for debt and equity crowdfunding. Reward-based and giveaway crowdfunding have both been very effective tools through SEC-regulated online platforms where anyone can invest in startups or small businesses with strict government guidelines.
The benefit of crowdfunding startups without large corporate donors has never been greater. This “democratization” of fundraising through ordinary citizens allows Wall Street not to tarnish a company’s mission. Much like the presidential campaigns of Sen. Bernie Sanders, I-Vt., And former Rep. Ron Paul, R-Texas, millions can be raised from people who wish to support the spirit of small donations rather than bend over backwards. to large companies.
Companies that directly serve the best interests of the small donor, just like a political candidate with a strong anti-Wall Street platform, reap the double benefit of providing a good product that people want to rally behind to begin with.
This summer we’ve seen average investors take on banks using Reddit groups buying stocks like Gamestop and beating Wall Street short sellers. Likewise, most people want the economy to thrive without Wall Street’s monopoly on a few financial institutions that govern them.
Cryptocurrencies have never been so popular around the world. The freedom that individuals have to regain power in regulated stock markets and fiat currencies will not stop but will only increase as new coins are introduced and more countries begin to allow them. cryptocurrency payments.
This is a pivotal moment for the global economy as governments attempt to tax and regulate cryptocurrencies. Crowdfunding of crypto-related companies must be the goal of the future of a free market.
With statements like Dimon’s, it is up to average citizens to defend the future of our livelihoods by defending decentralized cryptocurrency markets, while bankers like Dimon promote trillions of dollars worth of money. printing money to pay for the inevitable impending crash of our children.
Ian Kane is co-CEO of Unbanked