Taurus Wealth Advisors CEO Believes the US Banks are Afraid of Bitcoin. Not that long ago, we witness J.P. Morgan Chase CEO, Jamie Dimon, characterizing Bitcoin and other digital currencies as a big fraud. He also said that the entire market of digital currencies is one huge bubble and that it would collapse at some point in the future. He also added that it is almost impossible to predict when that might happen and he emphasized that Bitcoin might even reach $100,000 value before the collapse but the collapse is coming and it will be bad.
The response from the community has been harsh and all of the responses criticized Dimon for not being familiar enough with the issue of digital currencies and how they work. However, there were also those people who claimed that the attack on Bitcoin and other digital currencies came because big banks in the United States and other financial institutions from other parts of the world are afraid of Bitcoin and what these digital currencies could potentially do in the future.
One of the loudest critics of Jamie Dimon and his attitude towards digital currency is Rainer Michael Preiss who is currently the CEO of Taurus Wealth Advisors. He was one of the first investors who spoke against Dimon’s attitude towards digital currencies. He stated that if you are running a big financial institution like Dimon does at this moment, it is completely normal to be afraid of Bitcoin and other digital currencies and what they could do to the already established financial sector. Not only that they are afraid of the digital currencies but they are also perhaps even more afraid of the blockchain technology which has brought a revolution to the financial sector.
Preiss also stated that more and more investors are using digital currencies such as Bitcoin because of the banks like the one Dimon currently runs. The lack of transparency and the role of those financial institutions in global economic crises throughout the history have caused doubts among the investors in the true purpose and intentions of the established banks. While Federal Reserve in the United States that currently has $4.5 trillion in reserve and that keeps refusing the audit, with the use of blockchain technology, audit happens every day in the market of digital currencies.
That blockchain technology records every transaction that has been conducted with Bitcoin or any other digital currency and all users have the possibility of accessing the records and seeing the records of transactions for themselves at any time. Because of that, many investors are starting to use Bitcoin as their preferred currency as established banks have already proven to be corrupt and playing double games in the financial market.
With the almost constant rise in the value of digital currencies, established banks are worried what those digital currencies could do the established financial market. Currently, each currency in the world and the entire financial market is under the control of governments or rather central banks of those countries. However, Bitcoin is not the subject to any authority of that sort and that is one of the biggest reasons why banks are afraid of the digital currencies.
Written by Vedran Ostojic
Nice post, thanks.