Bradley Tusk, founder and CEO of Tusk Ventures, has responded to Jamie Dimon, head of JP Morgan, who said bitcoin and cryptocurrencies generally were in a big bubble. Eventually they would collapse.
Tusk makes a point that we have already made numerous times, that bitcoin is an alternative to current central bank money. He doesn’t say it in so many words, but the implication is the same.
… People are desperately seeking both a safe haven from the volatility of their own currency and homeland, and for a way to connect with others who think like they do – whether they share a common passport or not.
That’s the point. It is the reason why Dimon is wrong. Cybercurrencies may have rises and falls. Many may go out of business, but not all. Many may go down, but not necessarily to zero.
Determining the value and volume of money via a price fix, which is what central banks do, doesn’t satisfy the growing number of people who understand the sad simplicity of the process. It has gone on too long and been explained in ways that are too specific. The specificity gives rise to further repugnance,
He says, “Faith and trust, like anything else, needs somewhere to go during a vacuum.” And that is the point. There is something to take the place of state currencies now, beyond gold and silver which are highly controlled by banks.
China may try to crush cryptocurrencies, or take them over, but one way or another for the foreseeable future some cryptocurrencies will continue and even prosper.
And the currencies that central banks do take over will probably collapse because they will lose the qualities that make them an alternative money. Price fixing doesn’t work, whether applied to state money, or alternative currencies.
At least some cryptocurrencies will continue, even after a major crash. They are not entirely going away. Even if outlawed they will continue via gray- and black-markets. People have the ability to make private money again, and they will continue to use it.