JP Morgan Bitcoin Bible… Add Cryptos To Your Portfolio?

JP Morgan Bitcoin Bible

Last night the JP Morgan Bitcoin Bible was published for its private clients by JP Morgan Markets.

The Bitcoin Bible, or “Cryptobible” was first reported by Zero Hedge.

The Cryptobible is 71 pages of analysis and evaluation of the cryptocurrency market, Bitcoin, Ether, Bitcoin Cash, Ripple/XRP and other crypto assets and cryptocurrencies.

The report should be of great interest to anyone who has followed the comments by JP Morgan’s CEO Jamie Dimon about Bitcoin being a fraud and others’ comments at the firm about Bitcoin being a pyramid scheme.

Quotes from the Bitcoin Bible

I found out about the report from Zero Hedge, which has access to it. Some quotes via “Zero Hedge”:

“We believe the potential disruption from Blockchain cannot be ignored.”

“Technical signals can be very useful in gauging market direction and they have been sending the right signals in recent months…”

“We do not see cryptocurrencies competing with central bank-issued money for lawful transactions.”

“Some EMs (emerging markets), such as Venezuela and Russia, appear to be considering issuing CCs (cryptocurrencies) as a way to improve international funding and evade U.S. sanctions.”

“We examine the potential role of CCs in terms of offering diversification in a global portfolio, given both their high returns over the past several years and their low correlation with the major asset classes, offsetting some of the cost of high volatility. 

“CCs could potentially have a role in diversifying one’s global bond and equity portfolio. But in our view, that is a big if given the astronomic returns and volatilities of the past few years.”

“If CCs survive the next few years and remain part of the global market, then they will likely have exited their current speculative phase and would then have more normal returns, volatilities (both much lower) and correlations (more like that of other zero-return assets such as gold and JPY (Japanese Yen)).