What is Bitcoin? A letter to the Bitcoin community and Jamie Dimon
Since Jamie Dimons' comment on Bitcoin, people are defending Bitcoin and as a firm believer in Bitcoins, here is our statement.
What on Earth is Bitcoin?
Two days ago, JP Morgan chair, president and CEO Jamie Dimon said on CNBC that Bitcoin is a fraud. His comments made the Bitcoin community furious while also driving down the price of Bitcoin by 2%.
Instead of striving at each other's necks over the simple expression of opinion, we should use this opportunity to ask ourselves one definitive question; what is Bitcoins?
What is upsetting about this whole ordeal was not the comments of Jamie Dimon but the response of the Bitcoin community.
The Bitcoin community began to "defend" Bitcoin in the wrong way - as a cryptocurrency and then tried to explain why it was worth something.
Sorry, as a cryptocurrency, Bitcoin is worth nothing, not even the computer resources used to mine it. It is shocking that up till now, even the Bitcoin community does not know what Bitcoin is!
If you ask anyone in the Bitcoin and crypto-currency community what Bitcoin was, you are bound to hear;
Bitcoin is a crypto-currency....
Yes, that is where the problem is. Bitcoin is not a crypto-currency - don't ever say that again. There is already enough confusion about Bitcoin, do not add to it. Bitcoin started as a crypto-currency but has now evolved beyond that.
Bitcoin evolved from crypto-currency into a movement, then into an industry and has now morphed into a philosophy. Did you even know that Bitcoin has a representation in the Unicode Character code?
A scam, a virtual currency or a ponzi scheme will not make a representation in the Unicode Character code; only things symbolic to the entire human race do.
The misunderstanding that Bitcoin is a cryptocurrency is what led Jamie Dimon to trash Bitcoins, if Bitcoins are really nothing more than the random characters we are assigned then indeed Bitcoin is a fraud.
We hope that after reading this post you will have better understanding of what Bitcoin is also you would be able to give a better definition of Bitcoin when asked.
Again, what is Bitcoin?
As a digital currency, Bitcoin has failed;
- the average confirmation time is 30 minutes
- the average transaction fee is $4
- transaction be tracked by Chainanlysis
- thirdparty web wallets can be censored
- mining is centralized and monopolized in China
If Bitcoin is still king despite these shortcoming then you should know that it is because of something else and not its function as currency.
All hail the king!
Bitcoin is not a cryptocurrency but everything that matters. Bitcoin is several things:
- father of cryptocurrencies
- mother of blockchain
- face of the sharing economy
- pride of the anarchists and cyberpunks
- digital innovation of the century
- digital and electronic gold
- pioneer of programmable money
- accolade of freedom
- god of money and currency;
if you love money you might as well bow to it - coolest thing since Micheal Jackson
- what make the world spin on a tilt
- fraud, scam or whatever you think it is; opinions are like noses, everyone has one
Jamie Dimon trashes Bitcoin
Here are some of the words of Jamie Dimon on CNBC;
"It's worse than tulip bulbs. It won't end well.... It's just not a real thing, eventually it will be closed, ... Someone is going to get killed, ... Currencies have legal support. It will blow up"
He also said he would instant fire any JPMorgan trader found dealing with Bitcoins because;
"It's against our rules and they are stupid."
Jamie Dimon is not the only top executive who has trashed Bitcoins. Even the world's most successful sophisticated investor - Warren Buffett did trash Bitcoin and it was on the same CNBC;
"Stay away from it. It's a mirage, basically."
Why is it that its only on CNBC that top executives trash Bitcoins? Perhaps there is something familiar about Bitcoin and CNBC; never mind.
Understanding Jamie Dimon
One would wonder why such top execute have trashed Bitcoins. Well honestly, they deserve a break. Warren Buffett and Jamie Dimon are both conventional investors who are old in age.
Anyone who has dealt with elderly people should know that they are very skeptical about new norms, technologies and trends.
The same is true of these two top executive who have trashed Bitcoins. They are old but successful business people, that this means that they spend their entire life in a world of business and scams.
After years of making mistakes and falling to several scams, it is very normal for them to become very wary of anything that sounds suspicious.
Honestly, Bitcoin is very suspicious as no one know the founder yet he took 1 million of the total 21 million, then again it has no physical value but merely a code.
It is very normal for any grandparent to wonder why their grand child will use $4,000 to buy a piece of code which is not backed by anything, useful for anything or redeemable for anything.
We hope you now understand why these two elderly business men trashed Bitcoins. Jamie Dimon even stated that his daughter invested into Bitcoin and he did not like it.
Jamie Dimon is thinking;
"...My daughter bought bitcoin, it went up and now she thinks she's a genius"
This is just a simple over-protective and frugal father who is pissed that his daughter exchanged thousands of real dollars for some random strings of meaningless characters - called Bitcoin address and private key.
He must have called his attorney to sue someone only to find out that no one was behind Bitcoins. Damn! He really hates the Bitcoin community.
What did you expert him to say to about the community that scammed his precious but naive daughter? This is what he actually said on CNBC;
It's worse than tulip bulbs. It won't end well. Someone is going to get killed...
So basically; daughter gets scammed and daddy rises to her defense. What is the big deal? Wouldn't you have done the same thing if you were in his shoes?
Seriously; Will Bitcoin ever die?
There is no need to repeat ourselves so we will post an excerpt of one of our earlier post;
Bitcoin will not collapse or die. Bitcoin is an idea, the idea for a free, open, transparent, autonomous and secure financial system. Bitcoin is the father of crypto currencies and the mother of Blockchain technology.
Bitcoin is the face of the Sharing Economy and Bitcoin is the hope of anarchists. Bitcoin will not die. There are only 21 million Bitcoins and the more people come to know of the legendary Bitcoins, the more its adoption will cause it price to explode.
Bitcoin's developers have the best interest at heart and will not let Bitcoin down. Bitcoins' investors have invested more into Bitcoin than into their own retirement funds and will not let Bitcoin fail.
Bitcoin is still the most popular and most credible cryptocurrency in existence. Bitcoin is supported by over 1 million merchants world wide including Barclays banks, Google, Paypal, Wikipedia Foundation, Virgin, Fiverr, Stripe, AlphaBay(former biggest online black market), Microsoft, Newegg, LionsGate films, Whole Foods, Dell, The Internet Archive, Bloomberg, Intuit, US State Republican party, US Libertarian party, Shopify, Mint, Mega.co.ng, $Chan.org, Zynga, Telsa, Peace Airline, Namecheap, OkCupid, Home Depot, Reddit, Wordpress, Save the Children foundation, Steam, as well as several adult websites including Naughty America and Playboy.Bitcoin has unparalleled infrastructure behind it - mining power beyond all the world's super computer, Bitcoin has satellites beaming its transactions down from space, Bitcoin has AMTs and Bitcoin has light bulbs that mine it.
Everyone uses Bitcoin: Christian, Muslims, Hindus, Buddhists, atheists, the LGBT community, feminists and everyone else of whatever segregation uses Bitcoin. As you can see, if you thought no one used Bitcoin - sorry you are the only one who doesn't; if you did expert Bitcoin to die - sorry Bitcoin will outlive you, this generation, the next and the next.
Read the full post here;
Bitcoin down to $3,700 - your top 3 questions are answered about the fate and future of Bitcoin @BlockRush
What do you think? What is Bitcoin to you? Does it even matter what Bitcoin is?
You went too easy on Dimon. He is not the grandpa you think he is. He is a VERY sophisticated and informed businessman who knows precisely how Bitcoin works and what it is. The reason he makes such violent comments about it is because the way Bitcoin is evolving, I would expect that in 5 years no one will need banks. Indeed it is a major threat to banking. If Dimon just thought it was a silly investment, he would make some dismissive comment. But this was very emotionally charged and filled with hatred. No one speaks like that just because they think its a bad investment. They speak like that when they hate it or fear it.
agree 100%!!!! You understand why Jamie talked as he did. I posted about this as well. Buffet may be the country value bumpkin that doesn't understand it, but Dimon see it as a threat to his ivory tower, government protected, gold plated lifestyle. He isn't some crusader out to protect the people. He is a hack.
Jamie Dimon is a fucking shill.
simple, true post. got my upvote and follow.
i heard Warren buffet doesn't even own a computer, so his computer illiteracy makes him make ignorant statements about Bitcoin
lol
Great post how you disassembled things. The comparison between Buffett and Dimon is legit i think. If they not understand something they are against it or leave it behind.. a basic investor rule and it's nothing wrong with that. But critical is the spread of superficial knowledge you emphasized.
For Bitcoin (i wrote about) i see at first the big brand similar to you, almost everybody had heard about Bitcoin even if he don't know what's behind. The market penetration in real business is already established and so it's real value behind. If people accept the high fees (that will change i'm sure) than nothing is wrong. They know about, no scam, no bubble. My concerns go maybe to the high speculation because everything is so young and in their infancy but that's always if disrupting technologies hit the stage.. it turns things and thoughts upside down and change is always difficuilt thing for many people, especially older ones ;) me too
Exciting times ahead, again great post! Thank you! My full upvote!
his daughter owned btc and well millenials know what's up :D
bankers be bankers that's what my first reaction when I read his statement .
Entertaining little piece..thank you for sharing!
This post has received a 1.56 % upvote from @drotto thanks to: @banjo.
Dimon is an ass dildoe, hes a banker and btc is eating away his profit.