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JP Morgan’s Jamie Dimon And His Crypto Viewpoints

By
Paul Ugbede Godwin
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0
JP Morgan Chase puts contents through its CEO account, it goes viral. But the same content via JPMC account, no one cares (WSJ)

If you are looking for a compelling antagonist in the crypto space, you might be disappointed by Jamie Dimon. The CEO of JPMorgan Chase has been one of the most vocal and consistent critics of cryptocurrencies, dismissing them as a fraud, a scam, and a bubble. He has also warned his employees not to trade them, and his bank has been accused of manipulating the market by spreading negative news.

Jamie Dimon trying to psychic on crypto?

Jamie Dimon, the CEO of JPMorgan Chase, has been known for his outspoken views on cryptocurrencies. He famously called Bitcoin a “fraud” in 2017, and later said he regretted that remark. He has also expressed skepticism about the long-term viability of crypto assets, saying they are not backed by anything and have no intrinsic value.

However, in a recent interview with CNBC, Dimon seemed to have a change of heart. He said he was “not going to talk about Bitcoin anymore” and that he was “open-minded” about the potential of blockchain technology. He also revealed that some of his clients were interested in investing in crypto, and that JPMorgan was ready to offer them the services they need.

Does this mean that Dimon has become a crypto believer? Not quite. He still maintained that crypto was not his “cup of tea” and that he personally would not invest in it. He also warned that crypto could face more regulation and scrutiny from governments and central banks in the future.

So, what is behind Dimon’s apparent shift in tone? Is he trying to psychic on crypto, as some observers have suggested? Psychic on crypto is a term coined by Michael Saylor, the CEO of MicroStrategy, who has been one of the most vocal and influential advocates of Bitcoin. It refers to the ability to foresee the future of crypto and act accordingly, even if it goes against one’s own beliefs or preferences.

Saylor himself claimed to have psychic on crypto when he decided to invest billions of dollars of his company’s treasury in Bitcoin, despite being a skeptic for years. He said he realized that Bitcoin was a superior store of value than cash or gold, and that it was inevitable that more institutions and individuals would adopt it.

Perhaps Dimon is following Saylor’s example and trying to psychic on crypto as well. He may not like or understand crypto, but he recognizes that it is a force that cannot be ignored or dismissed. He may also see an opportunity to profit from it by serving his clients who want exposure to it. He may also want to avoid being left behind by his competitors who are more open to crypto, such as Goldman Sachs or Morgan Stanley.

Whatever his motives are, Dimon’s latest comments show that he is no longer hostile or dismissive of crypto. He may not be a fan, but he is not a foe either. He is trying to psychic on crypto, and that is a sign of respect and recognition for the crypto industry.

But despite his apparent hostility, Dimon is not a very interesting or effective villain. He is not a visionary who sees the flaws in the crypto system and tries to expose them. He is not a mastermind who plots to destroy the crypto industry and its supporters. He is not even a hypocrite who secretly invests in crypto while publicly bashing it.

He is just a boring banker who does not understand or care about the potential of crypto. He is stuck in his old-fashioned worldview, where centralized institutions are the only legitimate and trustworthy actors in the financial system. He is blind to the innovation and disruption that crypto brings to the world. He is deaf to the voices of millions of people who use crypto as a way to escape oppression, censorship, and corruption, He is not a villain. He is a relic.

BlackRock now largest institutional holder of Bitcoin with 25,067 BTC

Meanwhile, BlackRock, the world’s largest asset manager, has revealed that it holds more than 25,000 bitcoins in its spot Bitcoin ETF, which was launched in October 2023. The ETF, which trades under the ticker BTCX on the Toronto Stock Exchange, allows investors to gain exposure to the price of bitcoin without having to buy or store the cryptocurrency themselves.

According to the latest disclosure, BlackRock’s ETF had 25,067 bitcoins as of January 18, 2024, worth over $1.06 billion at the current market price of $42,400 per bitcoin. This makes BlackRock one of the largest institutional holders of bitcoin in the world, surpassing the likes of MicroStrategy, Tesla and Square.

The spot Bitcoin ETF is different from the futures-based Bitcoin ETFs that have been approved by the US Securities and Exchange Commission (SEC) in late 2021. While the futures-based ETFs track the price of bitcoin through contracts traded on regulated exchanges, the spot ETF directly holds the underlying asset in a custodial arrangement.

This means that the spot ETF does not incur the costs and risks associated with rolling over futures contracts, which can erode the returns for investors. Moreover, the spot ETF may more closely reflect the actual supply and demand dynamics of the bitcoin market, as it increases the demand for physical bitcoins rather than synthetic ones.

BlackRock’s spot Bitcoin ETF is not the first of its kind in Canada, as several other asset managers have launched similar products since February 2021, when the Canadian regulators became the first in North America to approve such an innovation. However, BlackRock’s ETF has quickly become the most popular and successful among its peers, as it has attracted more assets and trading volume than any other Canadian spot Bitcoin ETF.

As of January 18, 2024, BlackRock’s ETF had a market capitalization of $1.12 billion and an average daily trading volume of $18.7 million, according to data from Bloomberg. In comparison, the second-largest spot Bitcoin ETF in Canada, managed by Purpose Investments, had a market capitalization of $546 million and an average daily trading volume of $7.9 million.

The success of BlackRock’s spot Bitcoin ETF may be attributed to several factors, such as its brand recognition, its low management fee of 0.75%, and its partnership with Coinbase Custody, one of the most trusted and regulated custodians in the crypto space.

Additionally, BlackRock may have benefited from its timing, as it launched its ETF amid a renewed interest and optimism in the bitcoin market, following the approval of the first US Bitcoin futures ETFs and the adoption of bitcoin as legal tender by El Salvador.

Since its inception on October 15, 2021, BlackRock’s spot Bitcoin ETF has delivered a return of 26%, outperforming both the futures-based Bitcoin ETFs in the US and the spot Bitcoin ETFs in Canada.

BlackRock’s spot Bitcoin ETF is a significant milestone for the mainstream adoption and acceptance of bitcoin as an asset class. It demonstrates that a reputable and regulated institution like BlackRock is confident and comfortable in holding and offering exposure to bitcoin to its clients.

It also shows that there is a strong and growing demand for bitcoin among investors who seek to diversify their portfolios with an alternative and uncorrelated asset that has proven to be resilient and appreciating over time. As more investors and institutions embrace bitcoin, we may see more innovation and competition in the crypto ETF space, both in Canada and in other jurisdictions.

The Waning Power of OPEC+ As US Hits 13.3m bpd Oil Production Capacity

By
Ndubuisi Ekekwe
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1

Nigeria produces about 1.2 million barrels of oil per day. The United States does about 13.3 million barrels per day. But while Nigeria is an “oil producing country”, not many people in the real sense think of the United States as first an oil producing country. Why? The diversified US economy with New York anchoring banking, Silicon Valley technology, and so much, obscures the fact that non-OPEC+ countries (which the US belongs to) produce more oil in the world today than OPEC+ countries (which Nigeria is a member).

I have written here many times that the long term trajectory for oil price will be “low price” because it will be an era of quantity (adjusted by disintermediation from renewable energy), and whenever that happens, price struggles. Yes, as the US produces more oil, some OPEC+ members may decide to pull out (hello Angola which exited OPEC+) to enable them to produce unconstrained, and as that happens, prices will fall. That would be a vicious circle where more production will lead to lower global prices.

The Republic of Angola’s abrupt departure from the Organization of the Petroleum Exporting Countries (OPEC) marks a decisive turn in the group’s unity, raising concerns and signaling a growing rift within the coalition of oil-producing nations.

The move announced following a cabinet meeting on Thursday, lays bare a deepening conflict between Angola and OPEC, exposing underlying tensions over output limits that failed to accommodate Angola’s diminishing oil production capacities.

Good People, Nigeria has a few more years to fundamentally redesign the architecture of its economy because we can suddenly wake up to see that this oil will be there with few interested in buying it from us. Indeed, the real “producers” of oil are not making noise!

The U.S. now pumps more oil than any country in history, aided by new policies and technology. Federal and state tax breaks, along with relaxed regulation, paved the way for output of 13.3 million barrels per day in December, according to the Energy Information Administration. At the same time, new efficiencies including horizontal drilling techniques require fewer rigs. The output gains undercut the power of Saudi-led OPEC+, which now accounts for only 48% of global market share. 

Meta Platforms Nears $1 Trillion Market Cap as Shares Surged 200% in 2023

By
Samuel Nwite
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0

In a stunning turnaround, Meta, the parent company of Facebook and Instagram, is on the cusp of achieving a market capitalization of $1 trillion.

The company’s shares have experienced a phenomenal 200% surge in 2023, propelling its market cap to an impressive $966.60 billion, tantalizingly close to the coveted trillion-dollar milestone.

Meta, if successful in reaching the $1 trillion mark, will join the elite league of technology giants, including Microsoft, Apple, Alphabet, Amazon, and Nvidia, all currently valued at $1 trillion or more. Microsoft, leading the pack with a market cap of $2.93 trillion, signifies the significant achievement that awaits Meta should it cross this threshold.

This is not the first time Meta has flirted with the trillion-dollar valuation. In June 2021, the tech behemoth breached the milestone, reaching an all-time high closing valuation of $1.08 trillion on September 7 of the same year, according to Dow Jones Market Data.

However, Meta faced a tumultuous period as demand for tech products and services waned following the easing of Covid-related restrictions. The company suffered a severe setback in February 2022 when it reported a historic one-day wipeout in US corporate history after revealing a contraction in Facebook’s daily active user base, marking the first decline ever.

Responding to the challenges, Meta undertook significant cost-cutting measures, including laying off 11,000 employees in November 2022, marking the company’s first major round of layoffs. The strategic move aimed to navigate a landscape of reduced demand and uncertainty, with promises from Meta’s leadership that 2023 would be a “year of efficiency.”

The efforts seem to have paid off, as Meta reported robust earnings in the third quarter of 2023, surpassing analysts’ expectations. The stellar performance translated into a remarkable 200% increase in Meta’s stock value, making it the second-best performing company on the S&P 500, only trailing behind chipmaker Nvidia.

As of Thursday, Meta’s shares closed 2.1% higher at $376.13 apiece, inching closer to the $389.13 threshold that would catapult the company’s market cap into trillion-dollar territory, as per MarketWatch calculations.

This resurgence in Meta’s stock has not only benefited the company but also significantly boosted the wealth of its co-founder and CEO, Mark Zuckerberg. Holding a 13% stake in Meta, Zuckerberg’s net worth has skyrocketed from $48 billion at the beginning of 2023 to an impressive $136 billion, making him the world’s 6th-richest person, according to the Bloomberg Billionaires Index.

In 2023, the year of efficiency

Reflecting on the pivotal “year of efficiency,” Zuckerberg highlighted Meta’s strategic shift toward key areas driving growth for the social media giant. The emphasis on relevant content recommended by AI systems, particularly in the rapidly growing short-form video formats like Reels, has been a focal point.

“Facebook and Instagram are shifting from being organized solely around people and accounts you follow to increasingly showing more relevant content recommended by our AI systems,” he said.

Zuckerberg’s plans extend to improving monetization efficiency in Reels, with a broader investment in AI across the company’s advertising business. The last quarter saw advertisers experiencing over 20% more conversions compared to the previous year, coupled with a declining cost per acquisition, resulting in higher returns on ad spend.

Excitement also surrounds the monetization prospects of business messaging, with plans to bring messaging online as the next pillar of Meta’s business. Initiatives like click-to-message ads, operating at a $10 billion run rate, and the onboarding of businesses to the WhatsApp Business Platform for direct communication with customers, are indicative of Meta’s diversified approach to revenue streams.

These strategic shifts have led to unprecedented revenue growth, surpassing analysts’ predictions and solidifying Meta’s resurgence as a powerhouse in the tech industry.

Cryptocurrencies are Notorious for their Extreme Volatility, Speculative Nature and Lack of Intrinsic Value

By
Paul Ugbede Godwin
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0

One of the most challenging aspects of investing in cryptocurrencies is dealing with their high levels of volatility, unpredictability and risk. Unlike traditional assets, such as stocks, bonds or commodities, cryptocurrencies do not have any intrinsic value, meaning that their prices are determined solely by supply and demand in the market. This makes them extremely susceptible to speculation, manipulation and hype, which can lead to huge price swings in a matter of hours or even minutes.

Cryptocurrencies are also influenced by a variety of factors that are often difficult to quantify or anticipate, such as regulatory developments, technological innovations, security breaches, network effects, social media trends and more. These factors can create positive or negative feedback loops that amplify the volatility of the market.

For example, a positive news event, such as a major adoption or endorsement of a cryptocurrency, can trigger a surge in demand and price, which in turn attracts more investors and media attention, creating a self-reinforcing cycle. Conversely, a negative news event, such as a hack, a ban or a scam, can trigger a panic sell-off and a crash in price, which in turn discourages further investment and erodes confidence, creating a downward spiral.

However, cryptocurrencies also come with many drawbacks and risks. One of the main challenges is their high volatility, which means that their prices can fluctuate dramatically in a short period of time. For example, in 2017, the price of Bitcoin, the most popular cryptocurrency, rose from about $1,000 to almost $20,000, and then fell to below $4,000 in 2018. Such swings can be influenced by various factors, such as supply and demand, technical issues, regulatory changes, hacking attacks, media coverage, public sentiment and speculation.

Another challenge is their security and reliability. Cryptocurrencies rely on cryptography and blockchain technology to ensure the validity and integrity of transactions. However, these technologies are not foolproof and can be vulnerable to errors, bugs, hacks or malicious attacks. For instance, in 2014, Mt. Gox, the largest Bitcoin exchange at the time, lost about 850,000 Bitcoins (worth about $450 million) due to a hacking attack.

In 2016, a hacker exploited a flaw in the code of a smart contract platform called Ethereum and stole about $50 million worth of Ether, another cryptocurrency. Therefore, investing in cryptocurrencies requires a high level of research, analysis and risk management. It is not advisable to invest more than you can afford to lose or to rely on emotions or gut feelings.

It is also important to diversify your portfolio across different cryptocurrencies and other asset classes, to use reputable platforms and wallets to store your funds securely, and to keep yourself updated on the latest developments and trends in the industry.

Cryptocurrencies are not for the faint-hearted or the uninformed. They are an exciting but risky frontier of innovation and experimentation that can offer great rewards but also great losses. They require a lot of research, education and caution to understand and use them properly.

They also require a high tolerance for risk and uncertainty, as well as a long-term perspective and patience. Cryptocurrencies are not a get-rich-quick scheme or a magic bullet for financial problems. They are an innovative and experimental phenomenon that may have a significant impact on the future of money and society.

SEC delays decision for Fidelity’s spot Ethereum ETF

Meanwhile, the Securities and Exchange Commission (SEC) has postponed its decision on whether to approve Fidelity’s spot Ethereum exchange-traded fund (ETF) until March 28, 2024. The regulator said it needed more time to evaluate the proposal, which was filed by Fidelity in October 2023.

Fidelity’s ETF, called Wise Origin Ethereum Trust, would track the price of Ethereum based on the spot market prices from major cryptocurrency exchanges. Unlike futures-based ETFs, which trade contracts that expire at a certain date, spot ETFs would hold the underlying asset directly. This would allow investors to gain exposure to Ethereum without having to deal with the technical challenges of buying and storing it themselves.

Fidelity is one of the largest and most reputable asset managers in the world, with over $10 trillion in assets under management. It has been a pioneer in the cryptocurrency space, launching its own digital asset platform, Fidelity Digital Assets, in 2018. Fidelity also owns a 7.4% stake in Coinbase, the largest US-based cryptocurrency exchange.

Fidelity’s spot Ethereum ETF would be the first of its kind in the US, if approved by the SEC. So far, the regulator has only approved Bitcoin futures-based ETFs, which launched in October 2021 and have attracted billions of dollars in inflows. However, many investors and experts prefer spot ETFs, as they are more aligned with the actual price and supply of the underlying cryptocurrency.

The SEC has been cautious about approving spot cryptocurrency ETFs, citing concerns about market manipulation, fraud, custody, liquidity and investor protection. The regulator has rejected or delayed several proposals for spot Bitcoin ETFs over the years and has not yet approved any for Ethereum or other cryptocurrencies.

Fidelity is not the only firm seeking to launch a spot Ethereum ETF in the US. In November 2023, VanEck and Valkyrie also filed their own proposals for similar products. The SEC has not yet announced its decision on these applications, but it is expected to do so by April and May 2024, respectively.

The approval of a spot Ethereum ETF in the US would be a major milestone for the cryptocurrency industry, as it would signal the regulator’s recognition and acceptance of the second-largest cryptocurrency by market capitalization. It would also likely boost the demand and price of Ethereum, which has been on a strong uptrend since the launch of its network upgrade, Ethereum 2.0, in December 2020.

Ethereum is currently trading at around $6,000, up more than 600% from a year ago. It has a market capitalization of over $700 billion, making it the fourth-largest asset in the world after Bitcoin, gold and Apple.

Samsung Ushers in The Era of AI on Smartphones with The launch of Groundbreaking Galaxy S24 Ultra

By
Ojukwu Emmanuel
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0

In a symphony of technological advancements, South Korean multinational manufacturing conglomerate, Samsung, has ushered in the era of Artificial Intelligence (AI) on smartphones, with the latest launch of the extraordinary Galaxy S24 Ultra.

Unveiled at the Galaxy Unpacked 2024, the S24 Ultra comes with several AI features aimed at enhancing use, especially the phone’s most fundamental role, communication. When users need to defy language barriers, the S24 ultra makes it easier than ever.

Speaking on the rollout of the groundbreaking S24 Ultra, the President and Head of Mobile experience (MX) Business at Samsung Electronics, TM Roh said,

“The Galaxy S24 series transforms our connection with the world and ignites the next decade of mobile innovation. Galaxy AI is built on our innovation heritage and deep understanding of how people use their phones. We are excited to see how our users around the world empower their everyday lives with Galaxy AI to open up new possibilities.”

The S24 Ultra comes with a major design update, marking a move to a titanium frame (available in four colors: titanium yellow, grey, violet, and black), unlike its previous flagship that featured an aluminum chassis. Samsung says the new frame allows for better durability.

Here is an overview of some amazing features of the newly launched Samsung S24 Ultra

Interpreter Feature

The Samsung S24 Ultra comes with an Interpreter feature, that enables live conversations to be instantly translated on a split-screen view, so people standing opposite each other can read a text transcription of what the other person has said. It works without cellular data or Wi-Fi.

Chat Assist

For messages and other apps, Chat Assist can help perfect conversational tones to ensure communication sounds as it was intended. The Al built into the Samsung Keyboard can also translate messages in real-time in 13 languages.

The organization also gets a major boost with Note Assist in Samsung Notes, featuring Al-generated summaries, template creation that streamlines notes with pre-made formats, and cover creation to make notes easy to spot with a brief preview.

Online Search

In the S24 ultra, Galaxy marks a milestone in the history of search as the first phone to debut intuitive, gesture-driven Circle to Search with Google. To give Galaxy users an incredible new tool, Galaxy turned to the worldwide leader of search, Google, and opened up new forms of discovery with a simple gesture.

With a long press on the home button, users can circle, highlight, scribble on, or tap anything on Galaxy S24’s screen to see helpful, high-quality search results.

Improved Camera

Galaxy S24 comes with a proVisual Engine, which is a comprehensive suite of Al-powered tools that transform image-capturing abilities.

The S24 Ultra camera works with the 50MP sensor to enable optical-quality performance at zoom levels from 2x, 3x, and 5x to 10×10 magnification thanks to the Adaptive Pixel Sensor. Images also show crystal clear results at 100x with enhanced digital zoom.

After pictures are captured, innovative Galaxy Al editing tools enable simple edits like erase, re-compose and remaster. For easier and more efficient optimizations, Edit Suggestion12 uses Galaxy Al to suggest perfectly suitable tweaks for each photo.

When a picture is crooked, Al will fill in the borders. When an object needs to be slightly moved to be in the perfect position, Al lets users adjust the position of the subject and generates a perfectly blended background in its original spot.

Advanced Security And Privacy

The S24 ultra comes with Advanced Security and privacy which empowers user Choice and Trust Secured by Samsung Knox, Galaxy’s defense-grade, multi-layer security platform.

The feature safeguards critical information and protects against vulnerabilities with end-to-end secure hardware, real-time threat detection, and collaborative protection.

Also, users have the full controllability over how much they allow their data to enhance Al experiences, through Advanced Intelligence settings which can disable online processing of data for Al features.

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