Five months can be an awfully long time in the world of investing and Jaime Dimon has proven just why.
The JPMorgan Chase CEO initially labelled the cryptocurrency Bitcoin as a “fraud” back in September before going onto state that “blockchain is real.”
Dimon has however gone a step forward his week by releasing what some are calling the “Bitcoin Bible” for investors.
The 71-page document released on Monday provides a detailed explanation of cryptocurrency technology, spelling out their applications and challenges.
The report state that the growth of the cryptocurrency market have forced JPMorgan Chase and all market participants to take notice.
Here is a snippet of the pamphlet below:
“[Cryptocurrencies] are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity, even as the latter is under threat,” the report said, adding that the underlying technology could have the greatest application in area where current payment systems are slow.
Today, there are over 1,500 cryptocurrencies with a market cap of $400 billion, with bitcoin being the largest representing a third of the market (around $140 billion), according to CoinMarketCap.
JPMorgan Chase said the biggest challenges ahead for digital currencies is that it will be extremely hard for them to displace and compete with government-issued currencies, “as dollars to euros and yuan are virtual natural monopolies in their regions and will not easily give up their seigniorage profits.”