JPMorgan Says The Real Threat To Bitcoin Isn't Strategy (MSTR), It's Private Blockchains
Authored by Micah Zimmerman via BitcoinMagazine.com,
Strategy’s recent bitcoin sales and its formal monetization program have rattled investors, but JPMorgan analysts see a bigger danger to bitcoin: blockchain adoption that routes around public networks and the tokens that ride on them.
In a report led by managing director Nikolaos Panigirtzoglou (ZH: available here for professional subscribers), the bank argued that Strategy is not the main structural threat to the asset.
The company sold 3,588 bitcoin for $216 million in early July to cover preferred dividends, its largest disposal on record, and such sales can add bursts of selling pressure. The deeper concern, the analysts said, is where tokenization, payments and settlement end up.
Should that activity settle on permissioned rails rather than public chains, the crypto ecosystem could face a structural de-rating — thinner liquidity, weaker capital flows and slower on-chain volume — a drag that would reach bitcoin in time.
Institutions have leaned toward permissioned blockchains, which offer privacy, know-your-customer and anti-money-laundering controls, governance, throughput, legal accountability and regulatory certainty.
That preference, per JPMorgan, creates a competitive problem for public networks like Ethereum.
The analysts cited the ...
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