The bloodbath in bitcoin has only just begun – The Property Chronicle
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The bloodbath in bitcoin has only just begun Why cryptocurrencies are doomed to fail

The Macro View

Numbers on a digital screen

Jamie Dimon, the unanointed king of Wall Street and chief executive of New York banking colossus JP Morgan did not mince his words. He called bitcoin “a fraud”, a speculative bubble comparable to the Dutch tulip mania of the 17th century and declared he would fire any trader at his bank trading in the cryptocurrency “in a second” for “stupidity”. This has only reinforced the bloodbath in bitcoin, which has plunged 30% from its recent peak of $5014 on 2 September saddling credulous “investors” with $20 billion losses. The Economics 101 definition of money includes that it be a medium of exchange, a store of value – and a currency whose US dollar value plunges 25% in six consecutive sessions is obviously a poor store of value or medium of exchange. The world’s central bankers and securities regulators have also begun to crack down on bitcoin. The Chinese government banned its use as a unit of account in initial public offerings on the domestic stock exchange. Even the DFSA, the regulator of Dubai’s international financial centre, has issued a warning to the public against bitcoin fraud.

The Macro View

About Matein Khalid

Matein Khalid

Matein Khalid is Chief Investment Officer and Partner at Asas Capital. He is responsible for global investment strategies, merchant banking, and the development of the multi-family office investment platform, advising ultra-high net worth royal and family offices in the UAE on global equities markets and foreign exchange.

Articles by Matein Khalid

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