According to a survey conducted by JPMorgan Chase & Co., cryptocurrencies are viewed in positive terms by 51% of investors. Thus, the survey covered a universe of about 3,000 investors belonging to approximately 1,500 institutions. The other side of these (49%) referred to digital currencies as “rat poison squared.”
The term was patented by Warren Buffett to refer to virtual currencies as a “temporary fad.” Almost half of the 3,000 individuals surveyed consider it inappropriate to risk capital investing in cryptocurrencies.
In this sense, JPMorgan analysts Marko Kolanovic and Dubravko Lakos-Bujas highlighted the polarization that exists in this regard. “Investors’ views on the future of cryptocurrencies are highly divided,” they stressed.
Why are cryptocurrencies considered good by some and bad by others?
The reasons that push cryptocurrencies to be considered in one way or another are extremely subjective. Thus, it is very likely that a large part of the investors who describe virtual currencies as a “fad” do not have a greater knowledge of them. For their part, those who qualify them as assets to take into account, even though they do not fully know what it is about, are not fanatized with financial orthodoxy.
There is a third group of investors, the most enthusiastic and those who consider that cryptocurrencies will be counted among the most important assets in the future. That last group, it can be said that it is that of investors who have dedicated time to study these digital assets in depth. Many of them have probably reaped the rewards of their own crypto investments.
It should be noted that, although 49% of investors view digital currencies with negative eyes, there is a majority who think otherwise. Consequently, the survey shows a percentage of 42% of those consulted who say that digital currencies are here to stay. 9% rate them as the best potential assets in the entire market.
It is a broadly viewable view that is highly changeable. All this depends on the momentum that heavy currencies such as Bitcoin or Ethereum reach at a certain moment. For example, in the middle of a bull run in the crypto market, the percentage of negative looks decreases.
Other points of view touched in the JPMorgan poll
When talking about regulatory terms, cryptocurrencies are considered more sensitively by investors. Likewise, this applies in terms of consulting on the risks of using digital currencies for criminal activities such as money laundering.
In the first case, 81% of those consulted expect stronger regulations for virtual currencies. At the same time, 95% consider that fraud is one of the “natural” consequences associated with cryptocurrencies. On the other hand, the survey found that only 10% of those questioned had carried out trading operations with these digital assets.
Another important figure to highlight is that 20% of those investors plan to invest in Bitcoin or another currency. However, in the personal sphere, 40% of those consulted have reserves in cryptocurrencies. The latter is of great importance, as it shows that acceptance grows significantly despite fears.
Despite compelling evidence such as the FinCEN Files leak that the USD is the preferred instrument for money laundering and other crimes, cryptocurrencies are viewed as dangerous for those same reasons, without compelling evidence. Source: BBC
Assets contrary to the interests of civilization?
It is a notorious fact that cryptocurrencies are considered an instrument of crime by many people. This is probably one of the narratives with the greatest propaganda weight, but with little weight of evidence.
In the latter case, the notorious “contempt” that investors such as Peter Schiff and Charlie Munger have against Bitcoin should be highlighted. In the latter, the most extreme levels of fanaticism are reached. Less than two months ago he commented: “I hate the success of Bitcoin.”
Back then, he argued that the pioneering cryptocurrency was “contrary to the interests of civilization.” He asserted that he could not consider as positive a “currency used by scammers, kidnappers and other criminals.” It is normal to run into these types of value judgments by ordinary people and large investors alike. However, there are very different data to these beliefs.
Cryptocurrencies are likely to be viewed as weapons by many criminal groups. But an investigation into criminal activities will be enough to conclude that the USD is the most widely used asset for committing crimes.
It is worth highlighting a specific case. Last year 2020, the International Consortium of Investigative Journalists (ICIJ) published the results of an investigative work. The same, titled FinCEN Files, concluded that “banking institutions of the world financial system have had knowledge. Likewise, they have allowed various people to make transactions with illicit resources. The amount is equivalent to $ 2 trillion dollars “, highlighted at the time the TeleSur news network.
Data to take into consideration
A JPMorgan survey reveals that investors’ views on cryptocurrencies are highly polarized. Of 3,000 respondents, belonging to 1,500 institutions, 49% consider digital currencies to be “rat poison.” 51%, for their part, sees them as positive elements for the evolution of the market. On a personal level, 40% of the investors consulted have investments in Bitcoin and other virtual currencies. There is an important group that continues to consider cryptocurrencies as a “weapon of criminal groups” to Actions such as money laundering. In this last aspect, it should be noted that money laundering is carried out mainly with the USD. Studies by independent news agencies uncovered the FinCEN Files case in 2020, a trillion-dollar money laundering scandal . In it, it should be noted, is involved the bank that conducted the JPMorgan survey with the laundering of more than $ 514 billion dollars.