Jamie Dimon, Chief Executive of JP Morgan, has voiced concerns about bitcoin, essentially calling it a scam. Dimon made the remarks at an investor conference held in New York yesterday. Dimon also said he would fire any trader who dealt in bitcoin.
“I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.”
In an apparent response to his comments, cryptocurrency prices have tumbled, with bitcoin losing almost 10%. Dimon had in 2015, called investing in bitcoin a waste of time.
What may have prompted Dimon’s statement
Banks have expressed concerns about the possibility of cryptocurrencies encroaching into their areas of operation, as blockchain technology cuts of the need of a middleman for transactions. Individuals and businesses have also piled billions of dollars into cryptocurrencies, and Initial Coin Offerings that are largely unregulated.
In response to this, several countries and regulators have taken a tough stand. China has essentially banned trading of cryptocurrencies and ICOs by its citizens. The UK Financial Conduct Authority (FCA) has also asked individuals to report any ICO they feel is fraudulent.
The worries may be overstated
Despite the inherent risks, several banking giants (including JP Morgan) have invested in research about blockchain technology. Russia recently gave approval for a stock exchange to deal in cryptocurrencies. China, is reportedly working on its own cryptocurrency through which its citizens will be allowed to trade.
77% of BTC investors are in a state of profit
Hodlers have made a net increase of 233,000 BTC to their positions.
Most BTC investors are presently profiting from their BTC investment, as Glassnote’s (a crypto analytic data firm) Twitter’s feed shows that about 77% BTC supply are in a state of profit still. However, many investors have chosen not to cash out, but instead, prefer to hold.
BTC supply not moved in over a year: 62%
BTC supply in a state of profit: 77%
Read: Many investors could be profitably cashing out, but instead choose to hodl.
How can you not be bullish on #Bitcoin?
— Rafael Schultze-Kraft (@n3ocortex) July 13, 2020
Quick fact: It should be noted that BTC is not really anonymous because all BTC transactions are kept permanently and publicly on the blockchain or ledger system, so it’s very easy for anyone to see the transactions and balance of any BTC address.
A couple of weeks ago, Chainalysis researchers explained in detail that as the rush for BTCs keeps increasing, the price will most definitely be affected. The report said:
“With more people looking to trade BTCs, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity. However, one would expect this will only happen if bitcoin’s price rises to a level at which long-term investors are willing to sell.”
The report claims that the Hodler net position change, which provides an aggregate of long-term wallet holder behaviour, has been positive on 154 of the first 170 days of 2020. Glassnode data shows that Hodlers have made a net increase of 233,000 BTC to their positions since the start of the year.
Meanwhile, BTC difficulty has hit a new all-time-high of 17,345,948,872,516 (+9.89%).
Bitcoin difficulty hits a new all-time-high. New difficulty: 17,345,948,872,516 (+9.89%)
— Unfolded (@cryptounfolded) July 13, 2020
Whales move 100,000,000 USDT in less than 24 hours
Tether is ranked as the 3rd most valuable cryptocurrency by market cap.
Tether, the world’s most valuable stable coin by market capitalization, has been gaining a lot of traction lately. The latest development is that Tether whales moved about 100 million USDT to unknown wallets in less than a day, as seen on Whale Alert, an advanced blockchain tracker, and analytics system.
Data from Conimarketcap shows that Tether is ranked as the 3rd most valuable cryptocurrency by market cap of $9.165 billion, with a daily volume of about $20 billion as at the time this report was drafted.
Quick fact: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.
The “Tether Treasury’s” USDT wallet has grown in recent times in becoming the top holder of the stablecoin, meaning that some crypto traders, investors may have managed to successfully withdraw their stakes from circulation. The removal of about 29% of the total volume of Tether in circulation has recently coincided with a huge depletion in the amount of Tether held in 2 USDT wallets separately owned by Huobi and Binance.
Recall about a month ago, Nairametrics, outlined a report talking about the organic growth of Tether’s market capitalization as one of the major reasons for the gain Bitcoin (BTC) is presently having in the mid-term. “Interest in digital links to the dollar represents the need to handle and store value in the world’s reserve currency without an intermediary.”
$30 billion worth of BTCs disappears forever
Data from Coinmarketcap shows that BTC is presently trading around the $9300 support levels.
When access to a BTC wallet disappears, the BTC is lost forever. Data retrieved from Coincover, a British crypto analytic firm, showed that about 4 million BTCs are (worth some $30 billion at current prices) lost as a result of BTCs owners dying, and their next of kin not having access to such BTC wallet
As BTCs and cryptos become more prominent in human daily activities, the volume of BTC being lost forever is more likely to surge
“As bitcoin becomes more popular and its value continues to increase, considering how to manage it as part of an estate planning exercise is becoming increasingly difficult,” said David Janczewski, Coincover’s co-founder and chief executive, adding that, with bitcoin, “there’s no bank manager to ask, and no one can break in for you.”
What you need to know: Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.5 million BTCs in circulation. This shows a differential of about 2.5 million BTCs that are left to be produced.
Meanwhile, data from Coinmarketcap shows that BTC is presently trading around the $9300 support levels, with a market capitalization of over $170 million dollars and the flagship cryptocurrency having a trading volume at around $13.8 billion,
BTC transformed digital money by decentralizing this accounting process. Instead of a central figure that is responsible for making sure that their users’ transactions were always adding up, BTC works by sharing the account balances and transactions of every user across the globe in a pseudonymous form.