Cryptos: More and more snubbed by buyers?

The popularity of cryptocurrencies has led thousands of businesses to add these assets as a means of payment. Jewelers, equipment manufacturers, car manufacturers and several economic players no longer hesitate to integrate them into their ecosystem to get in tune with emerging technologies in finance. However, a recent study by JPMorgan highlighted a drop in demand for cryptocurrencies as a means of payment. Is this the sign of the end of the excitement around bitcoin, ether, Dogecoin and Shiba Inu?

JPMorgan denounces a lack of attraction for cryptocurrencies

Is the bear market there for something in this drop in demand for cryptocurrencies as a means of payment? Probably yes. Indeed, bitcoin and ether are struggling to regain their former price. This is why investors seem reluctant to trade in cryptocurrencies. For the moment, the savviest are content with HODL.

Takis Georgakopoulos, global head of payments for the Corporate & Investment Bank division of JPMorgan, said :

We saw a lot of requests from our customers, say up to six months ago. We see very few of them now. »

To say that 6 months ago, bitcoin was trading at more than 40,000 dollars a piece. (Source : CoinGecko)

Evolution of the price of bitcoin (BTC) over 6 months

Ether, meanwhile, was valued at over $3,500. While currently, its price is $1,316.49.

Despite this observation, Mr. Georgakopoulos stressed that the global investment bank JP Morgan will not give up. It will continue to support customers wishing to pay for their purchases in cryptocurrency at all costs.

Nevertheless, it should be noted that cryptocurrencies have not lost their luster in the gaming sector and the metaverse. The requests are there bigger and bigger “, we say at the level of this bank.

The CEO of JP Morgan, not a big fan of bitcoin and cryptos

JP Morgan, as an institution, has never been indifferent to bitcoin or other cryptocurrencies. In 2020, for example, she prophesied a bull run for BTC, predicting that the “ king of crypto would reach $130,000 per piece.

In the same year, the bank also saw that wealthy people in this world were starting to invest in bitcoin, at the expense of gold.

A year later, JP Morgan decided to integrate bitcoin into its ecosystem. The launch of Bitcoin investments for all its clients had taken place in July 2021.

Nevertheless, we should note that the CEO of JP Morgan, Jamie Dimon, does not share the opinion of his collaborators regarding cryptocurrencies. One wonders how the meetings of the directors of this bank take place with such a contrast.

For Mr. Dimon, cryptos are Ponzi schemes positioned in a decentralized market.

I’m a huge skeptic of crypto-tokens that you call money, like bitcoin. These are decentralized Ponzi schemes. »

If he gets used to appearing as a crypto-skeptic, he admitted that blockchain and decentralized finance (DeFi) form “ true » innovations.

Some data contradicting those of JP Morgan

Recently, Deloitte and Paypal conducted a survey which found that 85% of merchants ” place a high or very high priority on enabling cryptocurrency payments. »

The same report also pointed out that almost three quarters of respondents intend to accept payments in cryptocurrencies or stablecoins in the next 24 months.

Bank of America has also conducted its own investigation into the subject. As a result of this study, it was said that crypto-based payment is currently experiencing a “ growing interest “.

Details :

  • 39% and 34% of respondents admitted to using cryptocurrencies or other digital assets to make purchases online or in stores;
  • 49% and 53% of respondents expressed interest in using the same assets for the same operations.

In short, the two or three investigation reports that we have just mentioned contain more or less contradictory data. This leads us to ask the question: which saint to devote to? Yours truly advises you to take into account all the data that institutions as reputable as Deloitte, Bank of America and JP Morgan provide in order to make a good synthesis. Moreover, JP Morgan had not given precise figures; only estimates.

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