The silent conflict between established banks and the emerging cryptocurrency companies has reached a new level, after one of the largest financial companies in the world, JP Morgan, launched a veiled attack on cryptocurrencies, stating that bitcoin won’t manage to survive a lack of liquidity in case of an economic crisis. As an example, when such a crisis took place in the United States, the banks pumped money in the economy to stabilize it.
“One benefit of fiat money is that it can be used to provide emergency liquidity from the outside. (…) This is the role central banks play as the lender-of-last resort,” said JP Morgan in a release.
According to JP Morgan, cryptocurency lacks this stabilizing effect because it also lacks a central authority, and the number of coins is also fixed.
JP Morgan’s position on the topic was met with hilarity by cryptocurrency specialists. Some, like Aaron Lasher, the chief marketing officer at cryptocurrency tech company Breadwallet, said that the banks are simply trying to offer solutions for problems of their own making, while others underlined the fact that, if the bankers’ vision would be real, some of the poorest countries in the world would actually become the richest simply by printing enough money.
“If money printing solved the ills of economic collapse, Weimar Germany, Zimbabwe, and most recently Venezuela would be the most productive and economically sound societies on earth. Money printing delays the inevitable,” said Arthur Hayes, chief executive of the peer-to-peer crypto trading platform BitMEX.
Although banks seem to be eager to point out the so-called flaws of cryptocurrency, their views are seemingly not shared by companies worldwide. After giant Kodak announced their involvement in cryptocurrency, here’s gaming industry behemoth Atari doing the same thing with the announcement of their own “Atari Token”.
According to Fred Chesnais, the CEO of the company, blockchain technology will take a very important place in our environment in the future, and will transform, if not revolutionize, the world economy.
“Given our technological strengths with the development studios, and the global reputation of the Atari brand, we have the opportunity to position ourselves attractively in this sector,” said Mr. Chesnais in a press release.
The company’s objective, as stated by Mr. Chesnais, is to take strategic positions with a limited cash risk, in order to optimize the assets and the Atari brand. The strategic change in policy surely had the desired effect: the company’s shares went up 60% in the hours following the announcement.
While more and more world leading companies announce their involvement in blockchain technology, the market is also in full development with new cryptocurrency providers. It is the case of Linda, a DOGE-like cryptocoin which offers more than 70% of pure PoS block reward phase and 99% APR, a great idea for investment. Linda offers investment opportunities in two ways: either by staking or running a masternode.
According to the developers, 2 million Linda coins will enough for a Masternode Collateral inQ2 2018. The rewarding mechanism is also exquisite: Linda offers 50% block reward for Masternodes, thereby appearing much more attractive and profitable than any other alternate cryptocurrency.
You can read more about Lindacoin here.