Is Jamie Dimon’s Bitcoin skepticism justified?
During an Institute of International Finance seminar last week, JPMorgan Chase Chairman and CEO Jamie Dimon stated, “I personally believe that bitcoin is useless.” Because bitcoin is more controlled and precious than fiat paper currency like US dollars, the blatant absurdity in that statement speaks volumes about global bankers in general.
Many foreign currencies have become characterized as fiat as a result of countries abandoning the gold standard in order to alleviate concerns about federal gold supplies being depleted. Fiat currency is generated by the government or the Federal Reserve Bank and is not backed by anything other than the illusion of worth created by people trading paper money for goods and services.
According to Axios, Dimon recently stated that bitcoin has “no intrinsic value” and that “regulators will regulate the hell out of it.”
Unlike dollars, cryptocurrencies such as bitcoin are extremely durable, divisible, safe (they cannot be counterfeited), scarce (they have a predetermined supply), decentralized, and programmable (they are “smart”).
“It is a depressing reality that the popularity of central banks in this century has corresponded with a general tendency towards more inflation, not less,” economist Paul Volker remarked in 1994. If price stability is the primary goal, we performed better with the gold standard and inactive central banks in the nineteenth century, currency boards, and even ‘free banking.’ After all, the genuinely unique power of a central bank is the ability to generate money, and the ability to create is ultimately the ability to destroy.” In fact, the Federal Reserve has printed about $29 trillion, with the last two years alone accounting for 40% of all U.S. dollars in circulation. This is an obviously disturbing rate that has risen dramatically since the start of COVID-19.
How can a small firm in the United States grow with all of the financial system’s uncertainty?
Michael Sullivan, the founder of FundaVlog, coined the phrase “crowdfunding” in 2006. The idea of raising money online, on the other hand, began in the late 1990s as a method to sponsor events. The pandemic has recently resulted in a surge in crowdfunding by small firms seeking alternate funding sources.
The JOBS Act, or Jumpstart Our Businesses Startup Up Act, was passed into law in 2012 and opened the path for debt and equity crowdfunding. Through SEC-regulated online platforms where anybody can participate, reward-based and gift-based crowdfunding have both proven to be very effective strategies. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.