JPMorgan's Biggest Concern Is That Bitcoin Will Succeed

[Ares]

Via JPMorgan CIO Michael Cembalest,

After digesting all the hyperbole and the pessimism, my biggest concern is not that Bitcoin will fail, but that it or one of its many virtual currency competitors will one day succeed.

In the extreme, Bitcoin may lead to economic activity moving from the regulated economy to the underground “shadow” economy (after all, one of its primary selling points lay in its inability to be traced), even if some Bitcoin recipients faithfully declare it as income.

If this were to happen, the tax burden would fall disproportionately on the regulated economy that remains, creating a lot of unwelcome distortions.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/03/20140307_btc_0.png

Perhaps this is why there is a clear inverse relationship between the size of a country’s shadow economy and its wealth per capita. In other words, no one likes paying taxes, but when no one actually does pay them, everyone suffers.

Libertarianism has its limits.

http://www.zerohedge.com/news/2014-03-07/jpmorgans-biggest-concern-bitcoin-will-succeed

[Terry853]

Our current system will not be fixed till it is well and truly broken..could be some serious pain for a lot of people..I believe its called the Darwin Game..

[Shami-Amourae]

Thank goodness we have everyone from Alex Jones to half of the Truther community cheering with JP Morgan for the demise of Bitcoin and other cryptocurrencies.
:rolleyes:

[madfranks]

If this were to happen, the tax burden would fall disproportionately on the regulated economy that remains, creating a lot of unwelcome distortions.


Actually it's the exact opposite. It is the regulated and over-taxed economy that is distorted, while the true free market ("black market") meets buyers/sellers needs without any unnecessary fluff.

[mick silver]

you hand me something an i hand you something back

[Neuro]

Yes of course they are worried about this, the prime objective of the taxed economy is to provide cover of the stealing of people's assets by the banks...

[madfranks]

you hand me something an i hand you something back

And according to government and big banks, this is the "distorted" economy, whereas when you give them the portion they claim as theirs (taxes) and let them control and regulate you, that's the real economy.

[mick silver]

JPMorgan patents Bitcoin-like payment system By Jose Pagliery @Jose_Pagliery (https://twitter.com/intent/user?screen_name=Jose_Pagliery) December 11, 2013: 10:55 AM ET











http://i2.cdn.turner.com/money/dam/assets/131210103609-ron-paul-bitcoin-currency-dollar-fed-00004224-620x348.jpg (http://money.cnn.com/video/news/2013/12/10/ron-paul-bitcoin-currency-dollar-fed.cnnmoney?iid=EL)
Ron Paul: Bitcoin could help end dollar





399
TOTAL SHARES



313



86



NEW YORK (CNNMoney)
JPMorgan Chase has patented a digital payment system that could rival Bitcoin. The system includes digital wallets, the ability to transfer money to anyone and anonymity too, according to a patent application (http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=20130317984&OS=20130317984&RS=20130317984) filed to the U.S. Patent and Trade Office on Aug. 5. A blog on Let's Talk Bitcoin (http://letstalkbitcoin.com/jpmorgan-chase-building-bitcoin-killer/#.UqiEePRDt8F) first reported the story.




JPMorgan (JPM (http://money.cnn.com/quote/quote.html?symb=JPM&source=story_quote_link), Fortune 500 (http://money.cnn.com/magazines/fortune/fortune500/2013/snapshots/2608.html?iid=EL)) has also patented payment software that would latch onto your Internet browser and allow you to shop without pausing to fill out forms with personal financial information. And with what the bank calls its Internet Pay Anyone Account, moving funds would be anonymous and as easy as sending an email.
Related: 15 best financial sites and apps (http://money.cnn.com/gallery/pf/2013/12/11/best-financial-apps/index.html?iid=EL)
"The credit pushes can be made completely anonymously, with the recipient of the credit having no way to determine from where the credit originated," the bank says in the application.
Another aspect of the digital payment system is a virtual private lockbox. Think of it as a bank account that can only accept funds. That way, users can receive funds from anyone by publishing its digital address publicly without fear that someone can pull money out of it.
Related: What is Bitcoin? (http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=GM)
http://i2.cdn.turner.com/money/dam/assets/130516091941-t-bitcoin-miner-00013122-620x348.jpg (http://money.cnn.com/video/technology/2013/05/16/t-bitcoin-miner.cnnmoney?iid=EL)
How I make money mining bitcoins



The impetus for the project is likely Bitcoin (http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=GM), the independent electronic currency created in 2009 that has gained lots of recent attention (http://money.cnn.com/2013/12/10/technology/bitcoin-currency-fred-wilson/index.html?iid=EL). But the patent application shows no mention of Bitcoin.
It does, however, say what led to its development: The modern financial system is outdated.
In the patent application, JPMorgan notes two trends that are making the old banking system obsolete. One is that merchants are establishing direct relationships with customers -- and they don't want middlemen slowing down the transfer of money. The second is that digital products are often sold in small increments for very low prices, and the currently high price of per-transaction fees don't make sense.
"A new marketplace has emerged for low dollar, high volume, real-time payments with payment surety for both consumers and producers," the bank writes in the application. http://i.cdn.turner.com/money/images/bug.gif (http://money.cnn.com/2013/12/10/technology/bitcoin-jpmorgan/index.html?iid=EL#TOP)



First Published: December 10, 2013: 3:21 PM ET

[Ares]

JPMorgan patents Bitcoin-like payment system By Jose Pagliery @Jose_Pagliery (https://twitter.com/intent/user?screen_name=Jose_Pagliery) December 11, 2013: 10:55 AM ET











http://i2.cdn.turner.com/money/dam/assets/131210103609-ron-paul-bitcoin-currency-dollar-fed-00004224-620x348.jpg (http://money.cnn.com/video/news/2013/12/10/ron-paul-bitcoin-currency-dollar-fed.cnnmoney?iid=EL)
Ron Paul: Bitcoin could help end dollar





399
TOTAL SHARES



313



86



NEW YORK (CNNMoney)
JPMorgan Chase has patented a digital payment system that could rival Bitcoin. The system includes digital wallets, the ability to transfer money to anyone and anonymity too, according to a patent application (http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=20130317984&OS=20130317984&RS=20130317984) filed to the U.S. Patent and Trade Office on Aug. 5. A blog on Let's Talk Bitcoin (http://letstalkbitcoin.com/jpmorgan-chase-building-bitcoin-killer/#.UqiEePRDt8F) first reported the story.




JPMorgan (JPM (http://money.cnn.com/quote/quote.html?symb=JPM&source=story_quote_link), Fortune 500 (http://money.cnn.com/magazines/fortune/fortune500/2013/snapshots/2608.html?iid=EL)) has also patented payment software that would latch onto your Internet browser and allow you to shop without pausing to fill out forms with personal financial information. And with what the bank calls its Internet Pay Anyone Account, moving funds would be anonymous and as easy as sending an email.
Related: 15 best financial sites and apps (http://money.cnn.com/gallery/pf/2013/12/11/best-financial-apps/index.html?iid=EL)
"The credit pushes can be made completely anonymously, with the recipient of the credit having no way to determine from where the credit originated," the bank says in the application.
Another aspect of the digital payment system is a virtual private lockbox. Think of it as a bank account that can only accept funds. That way, users can receive funds from anyone by publishing its digital address publicly without fear that someone can pull money out of it.
Related: What is Bitcoin? (http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=GM)
http://i2.cdn.turner.com/money/dam/assets/130516091941-t-bitcoin-miner-00013122-620x348.jpg (http://money.cnn.com/video/technology/2013/05/16/t-bitcoin-miner.cnnmoney?iid=EL)
How I make money mining bitcoins



The impetus for the project is likely Bitcoin (http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=GM), the independent electronic currency created in 2009 that has gained lots of recent attention (http://money.cnn.com/2013/12/10/technology/bitcoin-currency-fred-wilson/index.html?iid=EL). But the patent application shows no mention of Bitcoin.
It does, however, say what led to its development: The modern financial system is outdated.
In the patent application, JPMorgan notes two trends that are making the old banking system obsolete. One is that merchants are establishing direct relationships with customers -- and they don't want middlemen slowing down the transfer of money. The second is that digital products are often sold in small increments for very low prices, and the currently high price of per-transaction fees don't make sense.
"A new marketplace has emerged for low dollar, high volume, real-time payments with payment surety for both consumers and producers," the bank writes in the application. http://i.cdn.turner.com/money/images/bug.gif (http://money.cnn.com/2013/12/10/technology/bitcoin-jpmorgan/index.html?iid=EL#TOP)



First Published: December 10, 2013: 3:21 PM ET

JPM Bitcoin style payment system has been REJECTED 175 times. This news report is old, and this latest patent was also REJECTED.

http://www.zerohedge.com/news/2013-12-15/jpmorgans-bitcoin-alternative-patent-rejected-175-times

Whenever you see news stories like this that don't list the patent number it means they don't actually have a patent on it.

[EE_]

CNBC had a spot on a little while ago with one of your very own, Jaron Lukasiewicz, Coinsetter founder & CEO, defending bitcoin. Try not to stare at the hook.
http://video.cnbc.com/gallery/?video=3000258301