Nearly everyone on the financial market is actually speculating about the future of the Bitcoin. If one side says it’s an economic bubble that will pop soon, the other side says its value will keep on growing until reaching a steady and sustainable level. These two ways of thinking are now personified by Jamie Dimon, who speaks in favor of a future fall of the Bitcoin, and the Winklevoss twins, who are expecting its rise to keep on going for a long time.
The Winklevoss Twins, the first Bitcoin Billionaires of history
The rise of the Bitcoin value took everyone by surprise this year, more precisely at the end of this year, and it even peaked at $20 000 somewhere in December. Mostly known for their portrayal in the movie “The Social Network”, Cameron and Tyler Winklevoss earned a $65 million settlement after they sued Facebook’s Mark Zuckerberg. They used most of this money to buy Bitcoin, and a few years later, they were the first Bitcoin owners who became billionaires.
Unlike every Bitcoin owners, they took the risk not to sell their Bitcoin once it rose a little bit, even though their stack’s value was around a few millions in 2013. Patience finally paid off in 2017, during which the Bitcoin value took 1700% from January to December. Afterwards, the Winklevoss brothers proclaimed themselves as the ambassadors of the Bitcoin. We must mention that they also invested over $300 million in other cryptocurrencies.
Jamie Dimon, the crypto-skeptic
Jamie Dimon, the actual CEO of JP Morgan, states that the Bitcoin is nothing more than an economic bubble. His main argument is that the Bitcoin has no consistent value, and its price is mainly due to hype, so it is doomed to drop down as fast as it rose. He even jokes about it, and claims to fire any of his employees who even dare to trade Bitcoin, with stupidity as ground for dismissal. He’s even known for seeking ways of taking down the Bitcoin soon.
He publicly mentioned in a conference in NYC that this currency has no future, and the Winklevoss brothers didn’t wait long before giving a public response. On FOX Business, they compared cryptocurrencies to a network, of whom value only increases as long as people believe in the aforementioned value, and actually buy and uses it.
Winklevoss Vs Dimon: the bet
After his claims against the Bitcoin, the Winklevoss brothers challenged Jamie Dimon to actually short the Bitcoin. They also invited anyone else who’s willing to bet against the Bitcoin to join in. Actually, it’s not the first time that the Bitcoin is directly challenged, and its futures made available in early December were said to seal the cryptocurrency’s fate. It turned out just fine for the Bitcoin, which futures leaded to an even faster rise of the currency’s price. Only time will tell if indeed the Bitcoin has a real value, and if Winklevoss brothers decision to keep most of their bitcoins as such was the best decision they could have taken.