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High interest rates, as well as fees, charged from customers who’ve used their credit cards to purchase cryptocurrencies, have given merit to a full-fledged lawsuit filed against JP Morgan Chase & Co.
Brady Tucker claims JP Morgan Chase & Co has started treating his cryptocurrency purchases as cash advances back in January when, instead, they should have been regarded as buys. Due to this, the bank has supposedly started charging him with additional fees and with ‘sky-high’ interest rates of as much as 30% per annum.
When it comes to talk of “The Bitcoin Bubble,” the FUD never stops — especially when it comes from traditional financial institutions like Morgan Stanley.
They Look the Same (But Not Really)
According to Sheena Shah, a strategist at Morgan Stanley, there are similarities between Bitcoin and the Nasdaq during the 1998-2000 technology bubble — with his argument centering around the fact that both experienced massive run-ups before dramatically decreasing in value.
As displayed in a chart from Bloomberg and Morgan Stanley Research, Nasdaq and Bitcoin appear to have followed very similar patterns. However, the timeframe in question is highly skewed — and apparently illustrates Morgan Stanley’s ignorance to the fact that Bitcoin has existed for nearly a decade.
The crypto space is hot property at the moment even in the wake of recent market slumps. More institutionalized finance exchanges and organizations are looking to provide a wider range of products for their clients and these must now include Bitcoin futures. The latest to join the blockchain train is Morgan Stanley.
As the first Bitcoin futures contracts expired and were settled this week, the CBoE hailed them a success and a victory for those bearish on Bitcoin. Morgan Stanley has joined its rivals Goldman Sachs and will begin clearing Bitcoin contracts for its clients according to Business Insider.
In a recent report sent out to clients, Morgan Stanley analyst James Faucette cautioned that the “true” value of Bitcoin might actually be zero.
Zero. Zip. Nada.
The report, titled Bitcoin Decrypted, discussed the difficulty in ascribing value to the digital currency, noting that it behaves like neither a currency nor a store-of-value commodity like gold, silver, etc… Examining several key factors, Faucette points out:
- Bitcoin can’t be valued as a currency because it has no associated interest rate;
- It may be likened to digital gold but, unlike gold itself, which is used in electronics, jewelry, etc.., Bitcoin has no inherent use*;
**On today’s episode of The Cryptoverse:**
1. A mini market roundup
2. LiteCoin is getting confidential transactions
3. Japanese Bitcoin exchanges prepare for regulation
4. Venezuela hyperinflation continues
5. Morgan Stanley CEO says Bitcoin is more than just a fad.
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