- A JPMorgan investor note has proclaimed Bitcoin’s “considerable” long term upside
- The note added that Bitcoin could “compete more intensely” with gold
- The bank’s view is at odds with those of its CEO Jamie Dimon who says Bitcoin is a scam
A JPMorgan investor note did the rounds on Twitter last week, causing a stir in the cryptocurrency world and not a small number of wry smiles. This isn’t because yet another traditional banking establishment has finally come round to Bitcoin’s potential, but because the bank in question is JPMorgan, whose CEO Jamie Dimon has famously labelled Bitcoin a scam.
Most bullish commentary for #bitcoin that I have read from JP Morgan
Widespread research piece reaches all clients of the bank.
Paypal announcement “cover” for other traditional players to get involved. pic.twitter.com/lUd8oYQ77h
— Dan Tapiero (@DTAPCAP) October 23, 2020
Dimon’s Views at Odds With His Bank
The JPMorgan investor note was surprising, not just in the fact it was so bullish on Bitcoin, but because its sentiment is at firm odds with the view of CEO Dimon. Dimon himself has been famously dismissive of Bitcoin since 2017, since when his bank has taken strides towards acceptance of the cryptocurrency as a viable asset in 2020.
Dimon labelled Bitcoin a scam three years ago and has never publicly changed his stance, but others at the bank seem to have had a change of heart this year. Firstly in May they announced that they had JPMorgan had offered corporate banking services to Coinbase and Gemini, a move that the Wall Street Journal said at the time was “the latest in a string of positive developments for bitcoin and another sign that Wall Street is becoming more comfortable with the business of cryptocurrencies.”
JPMorgan Turns Bullishness Up To 11
If this initial move was considered bullish, then the investor note JPMorgan sent to its clients last week turns the bullishness up all the way to 11:
Bitcoin could compete more intensely with gold as an “alternative” currency over the coming years given that millennials will become over time a more important component of investors’ universe.
The note also cited Bitcoin’s “considerable” long term upside in terms of price, adding that “the market value of cryptocurrencies could eventually rise beyond what could be justified by only valuing them as a store of value.”
A bank calling Bitcoin an alternative currency that could challenge gold while its CEO calls it a scam is an interesting dichotomy. It is suggestive of one of three things – either Dimon has been playing the long game and intentionally talking Bitcoin down in order to lower the price; he has had private a change of heart on the cryptocurrency; or his views no longer match those of JPMorgan.
Whichever of these is the reason for the about turn, it is worthy of discussion and is certainly bullish on Bitcoin in the long run.