Bitcoin started in 2009, and they have long held their reign as the top cryptocurrency by market cap. Without Bitcoin, the cryptocurrency movement would still be an idea, and blockchain technology would not be what it is today.
Though many altcoins have tried to compete, all have failed, and Bitcoin has been the biggest indicator of the market. The way it has defined cryptocurrency is nothing short than the way Bandaid has become the household name of adhesive bandages.
CEO Jamie Dimon of JP Morgan Chase has frequently criticized and torn down Bitcoin, calling it a fraud and has even insulted much of the crypto market all together. Blockchain technology, however, has constantly been a source of interest for him, and he recently announced that he would be bringing his own blockchain product to the table.
The launch is a shock to anyone who knows Dimon’s name in the crypto community, but the JPM coin will not be referred to as “cryptocurrency” during this article. The actual definition of cryptocurrency is broad and constantly expanding. On the Everipedia website, cryptocurrency is defined as:
“a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets.”
Mining is not actually included in this definitely. Basically, that definition would allow any token to be considered a cryptocurrency.
However, cryptocurrency’s definition here does not really cover it accurately. In comparison with the dollar, Bitcoin is basically digital cash, which was its intention in the original whitepaper from Satoshi. While traditional bank accounts allow transactions to be pulled (which is the root of most fraud), the same is not true of crypto.
With cash, whoever holds it is the owner, just like with fiat. Bitcoin allows users to be their own bank with private keys, while a bank can just lose funds without explanation and it still impacts the customers. A hardware wallet makes crypto holdings almost untouchable.
Bitcoin is also decentralized, leaving no one to control it. While there are some issues in the altcoins that are presently in circulation, especially for altcoins that have companies with a majority stake, the core intention is to have a digital asset controlled by the people who “own” it. There is no account representative or middleman; as long as a Bitcoin transaction meets the consensus rules, it is attached to the blockchain and remains immutable.
Censorship resistance is a core value of Bitcoin and the blockchain, drastically setting it apart from modern banking. A crypto transaction is always posted on the blockchain, and the transactions cannot be deleted, making blockchain honest where a bank’s list of transactions could be altered. Basically, the author of a recent CCN article, which discusses this very issue, put it best:
“If your token doesn’t have the above properties – immutable, cash-like, and resistant to the petty despots of the world – then it is not a cryptocurrency.”
That being said, JPM Coin cannot be considered a cryptocurrency. It is, as best, a bank coin, and a bank coin is neither competition against or equal to Bitcoin in the slightest.
Now, more importantly, considering everything about the JPM Coin, it does not make sense to not use Ripple. Ripple’s existing products and crypto asset are basically what JPM Coin is doing. While JPM Coin is nothing like Bitcoin, it is very close to Ripple, which is a little unnerving. Ripple is all software, and software can easily be replicated.
If Ripple was smart in this circumstance, they would have approached or even tried to partner with JP Morgan for this protocol, because the use of a trusted bank has a much bigger threat to Ripple than it does to Bitcoin.
Another possibility is that Ripple could be a segue for JPM Coin to move beyond JP Morgan, but there are many platforms that could do the same. In fact, R3 has been working towards blockchain solutions for large institutions for quite some time.
Ben Walsh, a writer for Barron, introduced the idea that JP Morgan’s new coin will “kill the Bitcoin dream.” He said,
“JP Morgan’s coin rollout also says something about the broader state of technology in the current economy. Tech’s promise is no longer about replacing middlemen. It’s about middlemen using technology to entrench their profitable position.”
The opinion held by CCN is shared by other publications as well, like TheNextWeb. The writer immediately opens their own article by saying that JPM is neither cryptocurrency or stablecoin, even if it is found on a blockchain ledger.
There are plenty of bank tokens in traditional finance, so the writer categorized it as such. The article explains,
“The network powering JPM Coin will be entirely permissioned (private, or if you prefer: centralized), controlled by the bank itself. It will reportedly be available only to its institutional customers that pass JP Morgan‘s Know-Your-Customer measures. That’s really about it.”
They add a small note about Dimon, saying that he is not trying to trick anyone. Instead, they redirect users to true cryptocurrency, rather than the imposter that thinks it can go head-to-head with Bitcoin. TheNextWeb adds,
“It’s quite honest this product is probably not for you, and if you are looking for cryptocurrency, you might want to check out something like Bitcoin or Ethereum.”
Now, regardless of the opinions of crypto media, the JPM Coin is here. There have been many failures and successes as cryptocurrency has evolved through the years. Even if the coin challenges the economy and the traditional market, it will not be included as a cryptocurrency. It simply does not have the golden Bitcoin power.
Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 14th)
