Bitcoin challenges the authority. It challenges the financial institutions that have pertained to for so long. Acting as a digital ledger that stores value, records and carries out all levels of transactions in a matter of minutes with minimal fuss, bitcoin reduces the financial friction banks rely on for their profits. Founder & Partner at Morgan Creek Digital and one of the top crypto influencer, Anthony Pompliano (Pomp) believes that the authorities (government & financial institutions) are going through the DABDA (denial, anger, bargain, depression & acceptance) phase for bitcoin. Talking to BlockPublisher late last year, he had stated;
First they don’t believe in digital currencies. Then they fight them. Then they say there could be a role for them to play if state backed. Eventually they realize Bitcoin is the answer.
Financial institutions, at first ‘denied’ bitcoin by ignoring it. Then they showed ‘anger’ by fighting and trying to get it banned. Then they started a ‘bargain’ by trying to introduce state-backed stable coins. Now they will get into the ‘depression’ of not being able to control it and finally, after trying everything, they will ‘accept’ it.
Authorities tried to ban bitcoin but couldn’t and now they are moving into a bargain with the crypto world with JPM Coin, an attempt by the leading U.S. bank JP Morgan, to introduce a concept of institution-backed cryptocurrencies to fight real cryptos.
JP Morgan, valued at $6 trillion is making use of blockchain by moving its extensive database over it. The bank has announced that only a tiny fraction of its operations will be carried out in JPM Coin which includes only a set class of institutions to use it, instead of individual and commercial users. This means that the public can’t use it as they would do with bitcoin and the coin itself is an asset walled by the bank which essentially disables the decentralized and transparent structures of bitcoin ideology.
As flawed as the current financial system may be, it has established trust as a sole entity for monetary transactions for all levels of consumers. With global financial institutions all too happy to produce more and more government-backed fiat currency whenever required, the system keeps putting every individual, commodity and business in a state of debt. Bitcoin solves a multitude of problems pertinent in the financial structure, including the fact that money can’t just be printed at the State’s will. It is built to revitalize the finance system where bankruptcy is inevitable.
Any attempt to curb monopolized structure banks are built upon will be skeptically challenged by all forms of financial institutions and such behavior has been seen towards the acceptance of bitcoin and other cryptocurrencies. Bitcoin is based on a decentralized nature of operation which ensures that there is no central form of authority in control of trade, consumerism and investment. This challenges the role of banks as a monitor to all sectors that involve money and as a manipulator to running world finance on their own. Bitcoin offers transparency that these institutions do not adhere to which is why they end up despising it and before accepting it fully, JPM Coin is the ‘bargain before death’ of these financial institutions.
Acceptance of bitcoin is the death of legacy financial institutions.