Bitcoin and other cryptocurrencies have nothing to be afraid of. Bloomberg’s recent report has been officially refuted, as JPM Coin is not even a crypto.
Following the news of February 14 about JP Morgan‘s launching its new cryptocurrency dubbed JPM Coin, a lot of controversial responses from crypto community continue to appear on the Web. Some crypto enthusiasts have met the news with promising expectations, while others have taken it with mistrust. However, the most unexpectedly outrageous response came from Bloomberg, the well-known financial media outlet, which reported that the launch of JPM Coin is boosting Bitcoin price.
At the time of JP Morgan’s announcement, the crypto market cap was actually down by 0.6%. A few days after, the crypto market started to go up again, especially Bitcoin (BTC) which price surged slightly above $4,000 USD. According to Bloomberg, it was a “delayed boost” caused by JPM token. Ironically, the outlet did not mention in the report other factors which affected the surge, such as the Lightning Network products, which are getting stronger every day.
The statement is more than hillarious and first of all demonstrates total misunderstanding of what JPM Coin is. In fact, JPM Coin is not even a cryptocurrency. It represents itself a centralized digital token designed to be used internally. Although it does use the blockchain technology, it does not mean that it has something in common with Bitcoin or any other cryptocurrency.
Moreover, while in common understanding a cryptocurrency should be decentralized, JPM Coin is centralized and relies on a trusted third party, not to mention that JP Morgan’s CEO, Jamie Dimon, is a well-known Bitcoin’s hater, who considers it as a crap. Essentially, JPM Coin is a stablecoin, which is developed more to settle payments between clients than having its own free market as Bitcoin does. In other words, JPM Coin embodies everything that Bitcoin is struggling against.
However, the Bloomberg’s ironic report is only the latest one to hit the headlines. It is not the only one outlet to spread the wrong statements around the Internet. Baron’s laughable “JPMorgan Just Killed the Bitcoin Dream” or The Washington Examiner’s “JPMorgan’s Alternative to Bitcoin” are among other examples of complete misunderstanding of the new cryptocurrency’s true nature:
As we can see, while being presented as the first native cryptocurrency issued by a major bank, JPM Coin is a cryptocurrency in name only. The bank will use it to instantly settle payments between clients. Further, it could be used to digitize securities like stocks and bonds. So there is definitely nothing to be afraid of for Bitcoin or any other crypto.
Eugenia can call herself a multy-interested person, as she is always in search of new proffessional fields to encompass. After graduating from Belarussian State University with Bachelor degree in both International Communication and Public Relations, she joined a travel startup Fresh Adventures, where she worked for 3 years creating unique itineraries through exotic countries, travelling around the world and developing the company as a partner. Currently, she works as a business analyst in the field of information technologies. She believes that IT is the future, that is why it is so important to keep up with the latest trends in this rapidly growing industry.
