JP Morgan states that cryptocurrencies are here to stay. Even though many of the financial institutions believe that cryptocurrencies are not the longer term phenomena but the truth is that, institutions reporting to like JP Morgan are clearly stating that cryptocurrencies are here to stay. This is according to an internal report from the company.
This was a report which was exactly pertaining to the summary of cryptocurrencies by the company.
According to the report, cryptocurrencies would continue to face such volatility. Moreover, the ecosystem would move around the blockchain technology over a long period of time and the loopholes of the blockchain technology would be filled up.
This is in stark contrast with the public opinions of the company related to cryptocurrency. Various executives including the CEO of the company have clearly stated that they believe that cryptocurrency is actually a fraud. However, the internal report holds an entirely different opinion.
Cryptocurrencies would not disappear anywhere
According to the report, cryptocurrencies would not disappear anywhere. They would continue to thrive and investors would invest in it for decentralization. Moreover, it would continue to evolve with the help of peer to peer networks and the anonymous nature of the cryptocurrencies.
JP Morgan is acting hard against most of the cryptocurrencies. Last week, it banned the use of its credit cards to buy cryptocurrencies. This is the reason why the interim report of the company is directly different as compared to the public opinion of the company.
It remains to be seen whether the public opinion of the company also changes in due course of time in order to support cryptocurrencies.
Many of the investors are also losing confidence in cryptocurrencies owing to the increased volatility. It remains to be seen when the next uptrend starts, the faith of the investors comes back or whether the investors stay away from cryptocurrencies. With billion-dollar market caps, most of the cryptocurrencies are too large to fail. This is the reason why even though they may remain stagnant for a long period of time but they are here to stay.
Many of the investors are holding cryptocurrencies over a longer of time. This is the reason why they are not liquidating even after the recent fall in cryptocurrencies. These are the investors who are also investing more whenever the cryptocurrencies falling. That is why it is able to gain the supports at the lower levels. It remains to be seen how strong the next uptrend is, whenever it starts.