When JP Morgan Chase Bank announced that it wanted to launch its own cryptocurrency, the uncertainty in the community was great. What does this mean for Bitcoin and Co. Will Bitcoin even become obsolete?
For the free and truly decentralized cryptos, like Bitcoin, this is a very positive development. It shows that the technology is already solid and very secure. Since JPMCoin is based on Ethereum, this is additional proof that the smart minds of the crypto community have done a lot right so far.
Five other banks are also launching their own cryptocurrencies in collaboration with IBM. These are also based on a publicly available cryptocurrency called Stellar Lumens.
The banks coins are NOT a "threat" to Bitcoin and Co.?
Why and with what intention was Bitcoin created? Anyone who understands this knows that no central currency controlled by banks or states will have a chance.
Basically, all that is changing is the technology of the already digital fiat currencies behind which the banks stand. In addition, this increases control over the citizens. This completely contradicts the basic idea of Bitcoin and Co?
These attributes make a decentralized and free currency!
Currently, Bitcoin is the only cryptocurrency that can fulfill these attributes 100%.
- censorship resistance -> unchangeable. There is only one truth to which all agree. Every human being has exactly the same rights. No matter what origin, religion, possibilities and status he has.
- unconfiscatable -> no one can take our money away. No state, no bank.
- permission less -> we don't have to ask permission to pay for something, or for how we use our money.
- trustless -> thanks to mathematical laws and decentralization, we don't have to trust anyone and can still be sure that no one is cheating us.
- decentral -> many people around the world, make sure the network is safe, working and honest.
All these features are missing in the decentralized cryptocurrencies created by banks!