The truth is it’s ‘bank hunting season’, and has been for about a decade now. And it’s not going to stop any time soon. The very existence of bitcoin and cryptocurrencies threaten the entire system. It challenges them with the fact that elitist greed and excess has an expiry date.
The value of our money is based on faith. Faith in the credit of our government’s monetary policy. This is why the concept of the blockchain and cryptocurrencies is so powerful. People may start to realise it’s the only safe haven left in the next crisis.
The irony to Jamie Dimon’s comments is he’s part of why bitcoin even exists. JPMorgan is part of the reason bitcoin is so successful. The whole rigged, broken financial system is exactly why the future of money is bitcoin and crypto.
To move banks, you would have to re-invest time and energy into new research. And there’s a tonne of information to get your head around. But financial technology is looking to make the process of comparing and switching banks vastly easier.
US politics is not looking like it’s going to be a beacon of calm over the rest of the Trump presidency. And the massive US debt ceiling problem is not going away. Such volatility usually triggers more investment into safe haven assets. To my mind Gold could be the big winner in the short term.
The power that crypto provides to everyday people is like nothing else before. I believe that’s the reason the likes of China’s government are cracking down on it. It’s why the US are watching it with their finger over the trigger. They’re petrified of the implications to their power base.
Cryptocurrencies represent what I call an ‘asymmetric bet’. In other words, the pay off if I’m right is 1,000%, 10,000% or even 100,000% my original investment over the next 10 years. If I’m wrong on the other hand, the maximum loss I can make is 100%.
Golem (GNT) is up 35% over the last 24 hours, as other major cryptocurrency prices have rebounded from steep falls earlier in the week.
The prudent course of action for mortgage holders right now is to pay down debt as fast as they can. If nothing major happens then an economic recovery will come along at some stage and interest rates will — eventually — revert to more normal levels.
The main thing holding the RBA back from moving right now is weak household spending. That’s largely because of the huge debt burden households are carrying.