JPMorgan CEO Jamie Damon reiterated Bitcoin’s past skepticism in a recent interview with Axios. When asked if Bitcoin is the foolish gold of the future, Daemon replied that it has no inherent value.
Dimon fails to see the true value of Bitcoin because of its financial advantage, which blinds him to the reality of billions living outside its utopia bubble.
He doesn’t have to worry about his savings being halved overnight and enduring a constant period of declining purchasing hyperinflation. He also does not know what it is like not to have access to the banking system and he is accustomed to a high level of independence, which many lack.
“It has no intrinsic value.
The fallacy of intrinsic value is a fundamental approach to economics employed by Karl Marx, and conservative economists still apply this concept to gold today rather than to paper money. However, there is nothing inherent about the value of anything.
Historical values are often confused with underlying values, argues economist Dr. Gary North, in his “Underlying Value Mistakes” for FEE. Since the gold histor has historically been accepted by most people and used to store wealth, some people believe this value in preserving and exchanging the internal wealth of gold, but it is not.
Instead, values are externally determined by people and their personal needs and desires, and its continuity brings with it historical historical value. For example, long-term adequate use of the dollar may carry historical significance, but it will not yet provide an internal value for the US dollar.
Indeed, the historical value of Bitcoin may not yet be. The peer-to-peer coin that was created more than a decade ago has not yet passed the test of time compared to the thousand years of gold tolerance. But that doesn’t mean Bitcoin has no value.
Bitcoin is the only financial network in the world that allows any user to transact value with anyone regardless of their location, race, religion or status. Bitcoin allows people to save money that the government cannot control or influence, ensures fundamental rights and empowers individuals. Therefore, Bitcoin is not a foolish gold, but a more advanced version of shiny metal.
It’s no surprise that Damon, who recently increased his JPMorgan share option to $ 49 million in his $ 31 million compensation package, doesn’t see the value of Bitcoin now. Financial privileges JPMorgan’s CEO experience level actually blinds the ability to convert Bitcoin to billions of people worldwide.
In addition to the economics of Bitcoin, Daemon also does not understand the technical aspects. Bitcoin cannot be banned or controlled. It is a peer-to-peer currency where all users are treated equally and all transactions are verified by the same government-agnostic rules.
Hopefully, however, time will lead Demon to understand these issues and see how valuable Bitcoin is to humanity. But if not, no problem, Bitcoin doesn’t care either.