Protection At All Costs
I am sure you may recall that some years back, Jamie Dimon declared Bitcoin a fraud and an extremely foolish investment option. Most of us in the Crypto space are aware that at the very same time, JP Morgan was actually purchasing BTC. Though this is typical behavior and to be expected, there is another motivation behind the narrative that Dimon chose to adopt. Remove for a moment, the deceptive angle of this public statement and look to what I am about to expand on.
Large companies and firms have a responsibility to protect their reputation and many times, at all costs. The clients they have secured over the years remain with them due to reputation. Though certain investment firms may not necessarily be very profitable, reputation sometimes becomes a more significant draw card. Clients choose to remain with them as reputation takes on a form of currency. A currency that continues to attract new clients and empower their revenue.
In a hypothetical instance, say a company like JP Morgan supported and encouraged BTC as an investment vehicle back In 2015. What do you think would happen to their reputation and standing in the investment world if BTC went on to crash and disappear into obscurity. Regardless of whether JP Morgan was buying BTC or not, they had to wait for significant confirmations in the market before going public. I am not providing support for their actions or endorsing their behavior or approach but this is how their game is played. Regardless of their approach or intentions towards Crypto, this is the road they had to follow.
The Flipside
What happens next is most likely the nightmare of every company or firm that is apposed to Crypto. The same principle that restricted investment in the early days, now moves in counter action against firms that don't adopt Crypto. Why do you think VISA and MasterCard are scrambling In a race to secure a network that is actually being utilized by their customers?
Once it has been signed off and accepted by significant players in the finance world, there is no going back. At which point,the race is on! As figures are reported regarding the returns of BTC and other top tier Crypto investments, the narrative is soon born. This is the narrative that Crypto is the top performing asset class over any time frame, vs any asset or currency. At which point, those who are not on board are soon seen in a very negative light. Clients will have so many questions and accusations.
Why were they told to avoid the best performing asset class of all time. These companies will soon appear to be out of touch with the world that they are suppose to be leaders in and that my friends is how companies become obsolete.
As a result, any investment or finance company that wishes to still be relevant in the next 5 to 10 years will be making significant moves to adjust and adopt. The larger the firm, the swifter the action needs to be. In traditional finance, nobody wants to be first and nobody wants to be last. The first aspect has already played out and now we are living in the race not to be last.
This is a frenzy that will play out over many years, as infrastructures throughout the world are going to be rebuilt.
