Singapore, SINGAPORE – A report by Reuters has indicated that JP Morgan analysts are insistent that the value of cryptocurrencies is unproven and that the backbone of blockchain technology will not be a difference maker in the next few years. There remains implied distrust for digital assets by traditional financial institutions and representatives from JP Morgan has taken a combative stance towards cryptocurrencies often.
As bitcoin (BTC) plummets in value, this notion is reaffirmed once again with many financial institutions electing to no longer participate in the BTC futures trading. Even as conspiracy theorist are suggesting that there is a veiled motive behind the distrust. It seems that institutional money shall remain on the sidelines. Despite this, the use of blockchain technology by the banking sector on a larger scale is possible in a few years.
The sentiments echoed by unnamed JP Morgan spokesperson(s) stated it was collectively “sceptical of the value of cryptocurrencies” and that such “assets would only make sense in a dystopian scenario where investors have lost all faith in gold, the dollar, other major reserve assets and the global payments system”. A circulated report stated that “even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging.”
Reiterated are the same concerns of extreme volatility and fragile security fortification as a result of rampant crypto theft due to hacking. Plus the justification that JP Morgan failed to see its use as a mainstream method of payment for goods and services last year. Why? Because no major retailers accepted crypto as payment. Nevertheless, the usage of BTC and other cryptos are championed by smaller business entities and individuals.
A final blow was dealt when suggested that a fall of BTC to US$1,260 is possible. At press time, the price of BTC is at US$3,604 as indicated on Coin Market Cap.