It’s always good to see bitcoin gain a new fan, and that’s what seems to be happening with JPMorgan, which at one time, was run by a man who didn’t care for the cryptocurrency. In a recent press release, the company explained why bitcoin was a better alternative currency than gold and why it was more prepared to compete in the financial world.
JPMorgan Thinks Highly of BTC
JPMorgan is under the control of a man named Jamie Dimon, who in the past, has said some rather derogatory things about bitcoin and its properties. Dimon has referred to bitcoin as a fraud before, though it wasn’t long after when he was commissioning the development of a new cryptocurrency specifically run and operated through his company. It would be known as JPM Coin, and it was one of the first examples of a major financial institution issuing its own digital asset.
Now, in a recent letter, the company explained that bitcoin has a lot going for it, and that in many ways, it outclasses gold. The letter explains:
Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price… Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.
The words imply that as time goes on, more companies and individuals alike will view bitcoin as a means of hedging one’s wealth against economic problems and to purchase both goods and services. Granted this continues to happen, the prices of bitcoin and its altcoin cousins will continue to shine.
We’re already seeing proof of this in that PayPal recently announced that users could purchase items with bitcoin through its platform, and as a result, the currency has struck the $13,000 mark for the first time in over a year.
Millennials Will Play an Important Role
In addition, JPMorgan says that bitcoin has a major advantage over gold in that it is more attractive to millennials, which the company says will really drive adoption in the future. The letter reads:
The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that millennials would become, over time, a more important component of investors’ universe.
This is an argument we have heard in the past, and it’s intriguing to see JPMorgan confirm it. The fact is that millennials have grown up during the time of the Great Recession, and thus do not see banks in the same light as their older counterparts. They do not trust mainstream financial institutions the way others might, and thus view bitcoin as a stronger way of maintaining financial independence.