Cryptocurrency a scam?

There have been quite a few gyrations in the Bitcoin market especially since China put the mockers on ICOs. This was then followed by Jamie Dimon – he of JPMorgan fame – saying Bitcoin was a scam. Yet today, one of the doyens of the London Gold market  – Sharps Pixley – has said they will accept Bitcoin for purchases.

Legislation surrounding Bitcoin & Digital Currency

Let’s just look at both of these. The Chinese are quite rightly saying we don’t want people to lose money through fraudulent or overhyped ICO offerings. They are also saying, if you are going to put money into stocks and shares, you have to be identifiable, so if you want to do this with crypto currencies, you will have to be identifiable as well. Personally, I don’t see why people would run away from Bitcoin because of these two eminently sensible announcements. In fact, they should enhance crypto currencies in general and Bitcoin in particular. Rather than an anonymous investment in something you don’t understand, where the principals may disappear with your cash, you can invest with confidence knowing who the other people are beside you. This is precisely why Scotcoin will be entirely AML and KYC compliant. The other thing to bear in mind is that – officially officially – nothing has been set in stone in China. There are “elections” coming up in October, and it is entirely possible that OFFICIALLY officially after these things might change.

Jamie Dimon is in my view being a bit naughty. He says “ It’s a scam”. But he also says, hey it will collapse, but maybe not until it reaches $100,000. So… is that a buy recommendation? Goldman Sachs don’t appear to have doubts – they say serious investors MUST hold some crypto currencies, if only because the growth in value has outpaced everything else by a mile. And he is after all in the business of getting his investors the best deal. Traders and market makers earn money by selling high and buying cheap, and he just may have created the last, best buying opportunity for Bitcoin. The present bounce up back above $4000 is in my view a trigger.

The Sharps Pixley announcement is way up there as far as a tipping point goes. Gold might trade $22 trillion a year but Bitcoin is already around $1 trillion. And that’s from a market not yet fully nine years old.

I have a view which is entirely personal. Bitcoin isn’t going to become the currency of choice for buying coffees and pizza. Apart from anything else the cost even after the recent fall is around £1.50 per transaction. That will only increase as its value rises. What Bitcoin MAY become is something like gold, a store of value and wealth. That leaves the field for “ currency” wide open, and Scotcoin is targeting that use. We may be “Scot” but that is not pejorative or limiting. We have holders in more than 40 countries. In fact, taking into account the diaspora of successful Scots worldwide, we all might just be on to a good thing.

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