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In a recent Reuters story http://www.reuters.com/article/us-usa-banks-conference-jpmorgan/jpmorgans-dimon-says-bitcoin-is-a-fraud-idUSKCN1BN2KP, JPMorgan's Jamie Dimon threw a bomb at the emerging cryptocurrency.
In the story he states, "The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."
He goes on to compare Bitcoin to the 17th-century Dutch tulip bulb situation.
Is he right, or is he just shilling for the present system of imaginary-value fiat currencies?
[Separately, according to Bloomberg, Bitcoin has been on a five-day decline: Bitcoin Crashes After Chinese Exchange Says It Will Halt Trading. --Ed.].
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JPMorgan's Jamie Dimon Says Cryptocurrency a Fraud, Bound to Fail
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belief, n:
Something you do not believe.
(Score: 2) by JoeMerchant on Friday September 15 2017, @02:55PM
It has value because people believe it has value - much like securities and most national currencies.
Even the "gold standard" - so, you can exchange your paper for gold - well, what, exactly, can an ordinary human being do with gold that might be considered valuable? Food, shelter, clothing, tools, pleasurable company, these are all of rather direct intrinsic value to the animal that is bartering for them - but gold? Not so much.
So, to me, the genius of BTC lies in the incentive system for the miners - now you have a community of dedicated believers in its value - it has value to them because they "worked" to obtain it, they won't just discard it. The scaling difficulty system and fixed supply aspects are also rather genius in that they have created this atmosphere of inflating value - a bit lucky there that there is enough interest in BTC to keep it inflating overall, would be nice if the system had some kind of tweak in it to stabilize the value a little bit, long term hyper-inflation of the value of a currency isn't really good for its long term utility. Anyway, just like Apple stock, the Nigerian Naira, and the U.S. dollar - BTC has value because people are willing to trade value for it. More or less end of story.
Mike Coin? Not so much. Maybe if you could spin up a little pyramid scheme or something to get a base of believers, then you might have something.
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