Cryptocurrencies and Underlying value.
A quick note for Jamie Dimon.
A lot of noise again about bitcoin and cryptocurrencies and underlying value. First things first any type of investment is risky and most people talking about a lack of value of bitcoin clearly don’t have a full understanding of it. Facebook is worth about $435 billion where does that value come from? surely their total assets reallistically are not worth that much only the shares. Where does the value of any currency e.g the Euro come from definitely not based on the productivity of the countries witihin the eurozone. Arguments against bitcoin and other cryptocurrencies which are based on a lack of underlying value are completely BASELESS. The value of bitcoin and other crypto assets come from:
- the underlying technology (blockchain)
- its rapid adoption (over 250,000 transactions daily) certain fiat currencies don’t even have close to that amount see zimbabwean dollar and venezuelan bolivar
- its potential for reaching the unbanked worldwide (More than a third of the world’s adult population make little or no use of formal financial services.)
- its proven superiority over traditional fiat currencies and assets when it comes to transaction security and speed (literally unhackable and faster than any bank transfer for transactions)
- we all know exactly how many bitcoins are, can and will be in circulation and this can be proven with calculations. Please tell me how many dollars or euros are currently in circulation or will be in the next few years. This is the exact problem people have with quantitative easing both in the EU and America.
These are just a few of the facts that give bitcoin and other cryptoassets their value and clearly to say that bitcoin has no underlying would only show how little people understand about cryptocurrencies. It is not something complicated just google it. Is one btc worth more than $4000 I can’t say but to say that it has no underlying value and that its just a thing because of how quickly its grown in value is just uninformed.