The financial establishment has a different approach when it comes to blockchain and cryptocurrencies. In a note released recently from JP Morgan (one of the largest banks in the world, top 10) that blockchain technology is very likely to be adopted massively in the finance, of course trying to be conservative about the speed of this adoption form the financial markets.
JP Morgan has never been friendly to cryptocurrencies. In a recent note that Crypto value is unproven and Blockchain is years away from adoption. The hard speech against bitcoin and cryptos, in general, is an ongoing narrative from JP Morgan Ceo Jamie Dimon. On the 10th anniversary of Bitcoin whitepaper release, he said “I don’t give a sh*t about Bitcoin,”
As indicated several times from the bank, cryptos aren’t probably going to do well, ever, even if a massive financial crisis happens. In a note released from the bank they stated:
“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging.”
Regardless of having a disproportionate perspective of cryptos, they are consistently testing with blockchain ventures and filing for blockchain patents right now. According to JP Morgan movements in the blockchain space, it seems obvious that blockchain technology is likely to take over the financial markets.
Maybe this is why JP Morgan sees Cryptocurrencies and blockchain as a threat to their business model.
Banks like JP Morgan have a dominance in the financial markets, but this dominance might be lost of blockchain systems enters the financial markets.
Blockchain has the potential to do do that because big banks basically do not produce anything except that “gambling advice for the rich” and for this, they overvalued and generously compensated as sources of information.
Blockchain Could Replace The traditional Financial System Like Email Did To The Traditional Mail service.
The blockchain capacity to replace the actual financial system seems to be underestimated. But if we get back in time we may see interesting things. The internet technology gave a big boost to financial markets.
The web permitted organizations like JP Morgan to optimize their effectiveness replacing traditional mail and fax with digital communications, yet the client’s benefit was insignificant.
Individuals still had to deal with bureaucratic centralized banks and use fiat money, being stuck to use a system that does not offer real competitiveness. A recent example that hit the news recently about Mastercard being fined for forcing their costumes to pay higher fees. Blockchain can possibly change all that.
With blockchain, individuals can avoid off utilizing a bank at all. The peer to peer concept does not necessarily depend on the proof of work even though bitcoin with the lighting network layer as is in a good path to scale. The blockchain technology may lower the fees much more than banks might be able to do.
Banks might be forced to adopt the blockchain technology or die. With time fiat currencies will be seen more and more what they really are, a monopoly infrastructure that is blocking efficiency. When this happens on a large scale, big banks like JP Morgan will be forced to adopt the blockchain technology.