Wednesday, December 6, 2017

J.P. Morgan backtracks on Bitcoin as the cryptocurrency's market cap now greater than their own

In a ironic twist today on Dec. 6, J.P. Morgan has now backtracked on their view of Bitcoin at the same time that the cryptocurrency's market cap grew to become greater than their own.

In fact not only has J.P. Morgan reversed their opinion on investors buying and selling Bitcoin in their portfolios, but analysts from the investment bank are even going so far as to call the cryptocurrency the 'New Gold'.

After Jamie Dimon drew a line in the sand for JPMorgan, calling it a ‘fraud,’ the company has once again stepped over that line, praising the digital coin as a ‘new gold.’ 
Analysts at JPMorgan believe that Bitcoin has changed its shape and that it could soon be joining gold as a reliable, long-term way to store wealth. Recent growth and recent changes have seen Bitcoin lean more towards being digital gold, and this is where JPMorgan see its value. 
“Potential to elevate cryptocurrencies to an emerging asset class” 
According to JPMorgan analyst Nikolaos Panigirtzoglou, the incredible spike in the value of Bitcoin is allowing it to start competing as an asset class; and seemingly at the same time drop out of the currency race. 
There are changes afoot in the Bitcoin market, especially when it comes to making the digital currency easier to invest in. Panigirtzoglou said
“The prospective launch of Bitcoin futures contracts by established exchanges, in particular, has the potential to add legitimacy and thus increase the appeal of the cryptocurrency market to both retail and institutional investors.” – Coin Telegraph
One must wonder why now for this sudden turn of opinion since it appears that J.P. Morgan is actually getting in late to the cryptocurrency party.  Because whenever an investment bank begins pushing a particular asset class, it usually means they have already bought in their own position when the prices were much lower, and are hyping it to clients as a means to profit rather than to help them in an altruistic manner.

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