JP Morgan released a cryptocurrency report that deals with the term and definition of cryptocurrencies and blockchain technology.
Besides from presenting an in-depth analysis on what cryptocurrencies, ICOs, and blockchain technology represent and stand for, the financial institution had compiled a report in order to analyze the potential and possibilities that come with blockchain and cryptocurrencies.
Explaining what cryptos stand for and defining blockchain technology and application, JP Morgan describes cryptos as “innovative maelstrom,” stating that the cryptos are not likely to disappear from the scene.
While many financial institutions claim that Bitcoin and other currencies dubbed as digital assets are a short-term trend, JP Morgan shares a whole different perspective on the same manner in JP Morgan internal cryptocurrency report.
JP Morgan Internal Cryptocurrency Report: Cryptos Unlikely to Disappear
While many financial companies are sticking to the side where cryptocurrencies are considered to be not more than a short-term trend that is about the expire, predicting the demise of the entire cryptocurrency market, including Bitcoin.
The current state in the market is certainly not speaking in favor of cryptocurrencies, however, JP Morgan disagrees with the mentioned presumptions regarding the lifetime of cryptos.
Although there is a strong possibility that some cryptocurrencies will disappear with regulations upcoming, the crypto market will survive based on the JP Morgan report.
The report describes regulations as a problem that cryptos are not yet ready to meet; however, the same report states that cryptocurrencies are less likely to disappear.
As the main argument to prove their statement, JP Morgan report states that there will always be someone who will want to gain access to peer-to-peer functions and decentralization that comes with blockchain.
That is how cryptocurrencies will always exist in some form. Another valid argument for the statement added in the report is applicability of technology that cryptos are using, enabling faster payments, driving the underground economy, blockchain innovations, and more.
Three Top Cryptos Spinning 550 Billion Dollars a Month within Individual Transactions
Perhaps the core argument on the matter whether cryptocurrencies are a short-term fed or not is found in JP Morgan cryptocurrency report within applications of cryptocurrencies.
The report describes that there are over 1,500 different cryptocurrencies in a market cap of 400 billion (at the time the report was written), adding that the first three cryptos are spinning around 550 billion dollars each month in transactions that are made mostly by individuals.
These massive cash flows are indicating that cryptocurrencies are truly experiencing adoption, slowly but steadily, making the market rather a long-term thing than a short-term fed.
Even though the market is seen in a major dip in November 2018, one mustn’t forget that cryptocurrencies are going through the expansion of use cases, being applied to different industries thanks to blockchain technology.
At the same time, the market is less than 10 years old, considering the time Bitcoin has been around, and with the majority of cryptos being issued in the last 1 to 3 years, so stable trends are yet to be formed.