So JP Morgan's boss, trashes Bitcoin and the price takes a hit, so I thought I'd give my take on this in a Vlog.

Disruptive technology

It has been often said bitcoin and cryptocurrencies are 'disruptive' technologies. Well in order to be disruptive it has to put someone's nose out of joint! For a moment everything seemed a little too kumbaya, with talk of 'institutional' money jumping on the bitcoin gravy train. It was almost as if the financial sector had learned the lesson from the mistakes of other institutional incumbents and embraced future innovation. However Mr Dimon has thrown a spanner in the works helping to send crypto into a tailspin.

Turkeys don't vote for Christmas

Of course the CEO of one of the leading Investment Banks, one of the bastions of the existing financial paradigm is going to be sceptical of anything that could rock the status quo that has served him so well. Particular if he missed the boat and doesn't fully understand how it works. It is not in his interest to see bitcoin or any cryptocurrency succeed.

Concern Troll

Instead of just saying, Bitcoin is not in my or my organisations best interest, Mr Dimon has taken the line that we would all be better off without bitcoin. We should get out before government shuts it down! Bitcoin is only good for criminals! It will end in tears for all the poor investors that put there money in!!

Yes there are risks in holding cryptocurrencies. Just like there are risks in putting your money in the bank. Or putting money in stocks and shares. Or under your mattress. Everything you do with money has an element of a gamble to it. You're potentially losing value to inflation or missing out on opportunities to grow your money. It's all one big game.

Yes cryptocurrency is volatile and more unpredictable than most investments. However most people go into cryptocurrencies with their eyes wide open. They know they can lose money. The mantra in crypto is do not invest what you cannot afford to lose, have control over your private keys. Everything is geared towards individuals being conscious of what they are doing with their money.

'Woke'

Far from being criminals, the people I encounter who are developing an interest in cryptocurrencies are professionals in their 40s/ 50s looking to protect the value/ grow their wealth for retirement. Traditional investment vehicles have let them down. The prudent savers are being punished, no longer living off the 5% -10% interest rate. They are losing wealth by keeping their money in the bank. These people aren't dumb or naive, they see the potential in cryptocurrencies and are hedging their bets or better still investing in future technology. But hey... if the CEO of JP Morgan says its bad, we have to defer to his authority right?

Family fued

Reading between the lines and the emotive language, Mr Dimon seems pissed that his daughter got the drop on him.

My daughter bought bitcoin, it went up and now she thinks she's a genius.

He is supposed to be the guru and she clocked onto bitcoin's growth potential before he did! I have 3 daughters. I know how it feels when they get it right and I get it wrong!

However thats evolution... kids are supposed to be smarter than their parents. He should be rejoicing that his daughter is de facto hedging the family fortune.

What if the old fool is right?

Lets take worse case and major governments start banning cryptocurrencies and exchanges. Aside from the impossibility of enforcing it, any ban will simply become an opportunity for other nation to fill the void. The market for protecting wealth will not simply disappear because the government says so. Countries that ban crypto will lose out on an opportunity to be on the bleeding edge of new technology. Ultimately governments yield to the will of the people on matters of innovation. Especially when they see other governments benefitting from their self-imposed exclusion.

Horse has bolted

Cryptocurrency is currently a space of growth and innovation. Technological growth tends to be exponential. Financial institutions are as stagnant as a dead horse in comparison... why else would Dimon need to warn his traders away from bitcoin? If it was such a terrible investment they would not need such an edict!

I'd fire a JPM trader in a second who traded that. Its against the rules, its stupid, its dangerous.

Usual Disclaimer

But hey this is not investment advice. My approach is to hear everyone but not to listen to anyone. I try to do my own research and follow the ethos of crypto, which is to be trustless.

With crypto you don't need to trust anyone, with your money. No 3rd party. The code and the network can be scrutinised and take your cues from there. Trust your own judgement as no-one will manage your money better than you can.

I'm only speaking from my perspective. The best wealth building decisions I've made have been by going against the grain and looking for the gap between perception and reality. But hey, maybe I'm jaded. The last time I listened to a banker I was a naive student getting shaken down and missold PPI. But hey at least they did it with a smile and a cup of tea!