Why Did JP Morgan Finally Accept Bitcoin?

JP Morgan finally bends the knee. It was only a matter of time. Jaime Diamond, the CEO of JP Morgan, the largest private bank in the world, the most important private bank in the United States, the biggest too big to fail bank in the United States, has been historically a Bitcoin skeptic. Back in 2018, he called it a fraud. Then he called it a pet rock. Ultimately, over time, he adjusted and said uh, you know, he didn't think it had value. Initially, he said if he caught anybody at JP Morgan trading Bitcoin, they would immediately be fired. Uh then he said ultimately, well, okay, we're going to trade it if our customers and you know, we'll buy and sell it for our customers if they want. Ultimately, he said, I will defend your right to own Bitcoin just like I would with other activities I don't agree with. And then ultimately last week the ultimate capitulation which is JP Morgan announc announced that for their institutional clients they will allow Bitcoin as collateral. Now what does collateral mean? Collateral is what you put up when you're going to borrow US dollars from a bank. You put up the collateral. The collateral is what the bank gets to keep if you default on the loan. Meaning you don't pay it back. Now, the nature of collateral is you would never ever ever give a loan against collateral that you didn't agree with or that you didn't think was valuable. So, if Bitcoin was a fraud or if it was a pet rock or any of the other, you know, disparaging remarks that Jaime Diamond has said about Bitcoin, then JP Morgan would never allow people to take loans using Bitcoin as collateral. So by admitting that Bitcoin is collateral, they're admitting the value of Bitcoin, which is just a radical 180 degree turnaround by JP Morgan. One by one, the dominoes fall. One by one, even Peter Schiff, the biggest critic of Bitcoin, ultimately last year set up a Bitcoin wallet and said he wasn't going to buy Bitcoin, but he would take Bitcoin donations. So little by little, even the harshest, most ardent criti critics are bending the knee. They are bending the knee to the value proposition of Bitcoin. They are capitulating out of necessity for their business model and they are paying homage to the future of money instead of just clinging to the past uh of money. So that's a huge deal. It's a huge deal that JP Morgan will accept Bitcoin as collateral for loans for their institutional clients. the ultimate admission that Bitcoin is valuable because otherwise they would never give a loan against it.