If you’ve been following the digital gold, bitcoin, you’ll know there are two camps — those that love it and those that hate it.
Falling into the latter camp is chief of JPMorgan Chase & Co. [NYSE:JPM], Jamie Dimon. While he recognises that the blockchain is a revolutionary technology with multiple functions, he’s not so hot on bitcoin.
Last month the investment banking chief said the digital token was a fraud. He added that he would fire any employee trading it for being ‘stupid’. But if JPM isn’t going to use this opportunity, rival investment bank, Goldman Sachs Group Inc. [NYSE:GS], will.
As reported by Bloomberg:
‘Goldman Sachs Group Inc. is exploring how it could help clients trade bitcoin and other digital currencies, according to a person briefed on the plan.
‘The New York-based bank is in talks with cryptocurrency experts but hasn’t yet formulated a business plan, a timetable for implementation or made any bitcoin-related investments, according to the person who asked not to be identified talking about internal deliberations. Among the questions the bank is seeking to answer: how to address know-your-customer requirements and how to understand the risks of the volatile currency, the person said.’
Goldman is now further along with the development of blockchain technology than most bankers. And if they can get it to work — that is, to be able to serve their clients’ interests in bitcoin while collecting fees — it could be a great move to one-up their long-time rival, JPM.
The price of bitcoin has continued to rebound since hitting a low of US$2,985.24 on 15 September. Year-to-date, bitcoin is up 340.8%.
Source: Coin Desk
If bitcoin continues to gain more support from ‘big money’ — hedge funds and investment banks — the price may continue to rise through to next year.
So if you’d like to know a bit more about the secret world of bitcoin, click here.
Junior Analyst, Money Morning