JP Morgan's "Bitcoin bible" says cryptocurrencies are unlikely to disappear completely

Author: Justin Low | Category: Cryptocurrency

JP Morgan released a 70-page report on cryptocurrencies on 8 February, here are some of my takeaways

  • "Cryptocurrencies are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralisation and anonymity"
  • The focus on the report seems to point out that they value the blockchain technology above everything else
  • They mention that the technology has vast potential and even highlights some of the potential uses (as in the above picture)
  • The report adds that the blockchain technology has greater potential compared to cryptocurrencies themselves, which are "limited to a trading vehicle"
  • It will be difficult for cryptocurrencies to displace or compete with government-issued currencies
  • Bitcoin transactions are still expensive, as they highlight that the bid-offer spread in the US is at 2%; compared to ETFs which are transacted at a spread of less than 0.1%
  • Cryptocurrencies can be "10 times more volatile than core assets or portfolio hedges based on historical performance"
A little late to the party, but going through it here are some key points that I found. The report also goes into detail on central bank-issued cryptocurrencies and how it would undermine the current way money is operated under a fractional reserve banking system.

If you're looking for further details on the report, there is some good coverage here by ZeroHedge. But the above is basically the key takeaways that I can find. The report doesn't offer much apart from detailing the background and providing more insight on the cryptocurrency market in my opinion.

They do dive into regulations a bit as well, but honestly, I see nothing here that could actually have potential ramifications to the cryptocurrency market. It's more of a dictionary than anything else.