A highlight from JPMorgan's Bitcoin Journey: From 'Worse Than Tulips' to 'Not My Cup of Tea' to New Product
Cycle a couple of years ago. Nfl offensive tackle russell. Kun made a now famous declaration. Pay me in bitcoin. He currently takes half of his thirteen million dollar salary and btc and half in fiat. Kansas city chiefs. Tight end sean. Culkin is taking it to the next level. And we'll be converting the entirety of his twenty twenty one base salary. Nine hundred and twenty thousand dollars into btc. Culkin is going to convert his fiat to bitcoin. Salary conversion service. This is the same service that russell uses and it means that the paychecks are automatically converted which detaches them from market movements and allows coke in his own words to stay focused on the game for their part. The kansas city chiefs are aware but their contract is still denominated in. Us dollars about the deal. Culkin said quote for me it makes sense to get paid in the hardest form of currency. And it's something that's resistant. Inflationary pressures that. I think is very relevant in this current economic environment. That wasn't the only. Nfl crypto news today as the presumptive number one draft pick from later this week trevor lawrence a sponsorship deal with block folio the bonus of which will be paid entirely in crypto. Clearly there is a mainstreaming momentum. Going on all right next up on the brief w is going on in turkey. I've been keeping you posted on everything happening in turkey but it's just gotten crazier on april sixteenth. The central bank announced that crypto would be banned as a means of payment. Effective april thirtieth. Two days later turkish exchange codex went off line on april eighteenth. The ceo of that company has gone missing and there are claims of massive fraud. Sixty two people with ties to the platform have been detained now for people have been detained as part of an investigation into verbal coin. Which is another turkish exchange. But none of this has stopped. Turkish crypto usage. In fact it's gone up sharply. Perhaps this is why a central bank governor went on state run tv in turkey to clarify saying quote you cannot fix anything. By banning crypto and. We do not intend to do this. Basically he was saying that there are coming. Regulations designed to address the quote alarming amount of funds leaving the country via crypto currency third and finally on the brief today a new wyoming dow lob dow stands for decentralized autonomous organizations and to listen to their boosters. Dow's represents a fundamentally new way of organizing and coordinating human resources and efforts detractors. Say among other things that they won't have any real legal standing fill effectively be a glorified facebook group well. Interestingly wyoming has passed legislation that creates a legal link between dow's and the state government allowing dow's to be registered as llc. Starting july wyoming. Senator chris rothfusz said about it. Digital asset stakeholders made it clear to us. They were concerned about facing general partnership liability in the absence of a well defined corporate structure are dow. Llc legislation should dispel that concern. Now i think this is going to be a bigger subject of conversation going forward for the simple reason that douse some version of them at least are such a next logical human organization step after anonymous accounts. There's no way as more activities shifts online into communities with pseudo anonymous actors that these don't just become more of a thing however the legal concerns are real in this sort of articulated legal space could open up some new possibilities looking for the best way to unlock your cryptos. Liquidity nextdoor dot. Io is exactly what you need borrow. Against your digital assets. At just five point nine percents apr earn passive income with yields of up to twelve percent and swap between more than seventy five market pairs with the instant so exchange. Try the next wallet app to get the whole three hundred. Sixty degrees of crypto banking get started at nasa dot. Io did you know. Nearly three hundred and thirty million dollars worth of nfc's were sent last year and in two thousand twenty one. That number's growing faster than ever looking to make your first nf t checkout nears fast. Scalable low cost open source platform. Learn why near the infrastructure for innovation at near dot org that's an e a r dot. Org to learn more today with that. Let's move to our main discussion. The vindication is running hot on bitcoin. Twitter today and rightly so first of all bitcoin last week was looking clearly oversold. The price of bitcoin is currently just above fifty. Four thousand remember. It dipped all the way back down to forty seven thousand last week on this show and in many other content domains people pointed out the non linear nature of bull markets. And here we are once more for the people in the back. The twenty seventeen bull market retrace between twenty percent and forty percents six or seven times on its march up. This was a nine point. Seven percent jump. The biggest percentage rise since march first. But no no no. That's not the real reason. Eventually they'll all come around mood on twitter g. p. morgan chase is rolling out a bitcoin fund. We'll get into the details in just a moment. But first let's give some of the past highlights in january of two thousand fourteen then treasury secretary. Jack lew said that he had spoken to j. P. morgan chase. Ceo jamie diamond about bitcoin and the two shared a certain incredulity about it in that month. Diamond call did a terrible store value because it could be replicated over and over in november of two thousand fifteen diamond got way out ahead of the government. Banning fudd saying quote no government will ever support a virtual currency that goes around borders and doesn't have the same controls as fiat currency. His most famous negative comments however came at the delivering alpha conference on september twelfth. Twenty seventeen where he called bitcoin. A fraud said it will eventually be closed and said it's worse than tulip bulbs won't end. Well someone is going to get killed now holding aside it being very clear what he means by that. He also said that he'd fire any. Jp morgan trader caught trading. Bitcoin in a second. I'd fire them in a second. He told the conference for two reasons against our rules. And they're stupid and both are dangerous pretty significant words from a major bank. Ceo but then fast forward to november of last year and his tone has started to soften the blockchain itself will be critical to letting people move money around the world. We will always support blockchain technology. Remember at this point. They had already released p. pm coins settlement stable coin so clearly there was a reason for him to have that softened stance and while he was lauding blockchain he also softened his tone on bitcoin itself saying simply quote wasn't his cup of tea while also acknowledging that quote very smart people were buying into it under the belief that it would outperform other hedges like gold. Now let's fast forward again to this morning. J. p. morgan chase is preparing to offer an actively managed bitcoin fund. This is all reported from insider sources and is not yet confirmed by morgan. But here's what we know. So far the fund will be actively managed. Which is different than many of the other. Private wealth focused funds out there. The fund will roll out as soon as this summer ni- dig is serving as the custodian for the fund. Put that as another one in their cap as they're also offering a bitcoin fun to jp arch-rival morgan stanley as you'd expect this is aimed strictly at private wealth client so sorry guys know bitcoin for you clubs out there now. This isn't totally surprising. In february a number of leaders from corporate and investment banking division more or less acknowledged customer demand might one day force their hand co president daniel. Pinto said quote if over time and asset class develops that is going to be used by different asset managers and investors. We will have to be involved demand. Isn't there yet. But i'm sure it will be at some point. Apparently demand is now there and for those keeping track at home it clearly was then to pinto is setting up narrative space for himself in the company rather than having a hard pivot all at once g.