JPM Coin - Misconceptions

Hey you, welcome back to the channel. Uh, and guys, today, uh, I want to do this video, uh, about the JPM coin following up from my last video. And this is called the misconceptions of the, uh, JP Morgan coin. Um, and we want to talk a little bit about, um, some information that came out from, uh, Mr. Brad Garlinghouse of XRP. Where he talks about the difference in the XRP token not being a liability, whereas JP Morgan coin would be this fiat-based cryptocurrency, any issues that that could present, and why some have come up with the idea that based on that, that the JPMorgan coin is, or the JPM coin is you know, not, uh, really going to be, uh, any significant threat to cryptocurrency. So, um, Joe Weisenthal, the co-host of Bloomberg's What Did You Miss?, um, he said that, uh, he fails to see Ripple's XRP, uh, able to compete with the forthcoming JPM Coin. He stated If it turns out that the blockchain coin framework to be a good one for banks transferring money around, then the JPM coin should absolutely obliterate Ripple. Think about it. Let's say you were in the business of transferring money. Why would you take on exchange rate volatility risk associated with having Ripple as a bridge currency? When you could have a fiat coin backed by JP Morgan? No brainer. So, yeah, to really kind of take this apart and try to understand the difference between the two. One's an asset, one's a liability, one is debt. Debt as in dollars, a promise to pay back. Right? We kind of have to go back to the World War II era. There are about 44 nations that met in a place called Bretton Woods, New Hampshire. And these nations were trying to figure out, uh, how to deal with exchanging, uh, their foreign currencies amongst each other. Uh, and they couldn't link it to gold But it was easier for them to link it to the US dollar, which was linked to gold. And this is how the US dollar became the reserve currency of the world. Uh, now it was only up until the Nixon administration that gold was delinked, and it was delinked because the United States was flooding the market with a bunch of paper money to pay for the war in Vietnam. And it paid for a lot of domestic policies, um, and programs. So it was, it was delinked, and now we got the free-floating market with the foreign currency exchange market, right? Um, so what does this all mean, and how is this significant to what's being said here, and why do people still trust the US dollar? Because even though it was delinked from gold, The US dollar continues to be the reserve currency of the world. And some people say, well, you know, they believe that the US dollar will decline over time and one day it will decline so bad that it, you know, won't be of value really to anybody. But to really put this all into perspective, to really have a realistic view of this and where the US dollar fits into all of this. The— to, to use terms like faith, a lot of times you use terms like the faith of the entity or the country to pay back this debt. And when I think of faith, faith is something where you don't see the ability to achieve something, but you just kind of believe it anyway. That's generally how I look at faith, whereas I kind of see something totally different with the United States. The United States, the strength of the economy of the United States and the buying power being the biggest consumer in the world, being linked with China at the hip, being the biggest consumer to China, you know, also, you know, being, this, uh, uh, the strong military power at the same time. It— and where all that becomes very important, because even if we go back to gold, interesting enough, and go back to World War II, a lot of the gold had to be moved out of Europe and moved into the United States to protect it from Hitler and the military power. So The point I'm trying to make here is there's a connection between gold, military power, money, strong economies. All of these things link together, right? And as long as they all exist, it's probably going to be, uh, a great deal of value and strength in the economy that has those things. Uh, And I guess the point I'm making is that the idea of a fiat coin backing, uh, JP Morgan, that is the US dollar, uh, is a little bit more, uh, than just calling it a liability. The liability, you know, I, I think to call the US dollar at this point a liability is, although technically it is a liability, The statement is not incorrect, but it is a very, uh, uh, what's the word I'm looking for? It is a— is it— it's not a very thorough investigation of, of, of the, the components of the liability of the US dollar, because the US dollar is the way that is connected to the world. It has become this represented gold, right? And remember, paper money is, um, is, is, uh, relative to your economies, your production, what you produce, the connection to the world, the size, the population. It's connected to military strength and power to protect nations, to protect gold reserves, all of this stuff. Is very much connected and it becomes a type of, you know, although technically not being an asset, technically it does very much mimic one in this particular specific situation. Now, another point I want to make about this idea of a collapsing dollar We really have to understand that to see something like the US dollar completely collapse to the, to the idea of where people would be greatly concerned about not wanting to keep their money in dollars or in the US dollar and various things like that, you would be talking about something of an apocalyptic nature. I think it would probably be so severe to see the dollar crash that you would— the last thing you'd probably be thinking about is protecting your money. You know, this would probably encapsulate a world that looks something like the Mad Max Beyond the Thunderdome world, right? The, uh, these very, uh, apocalyptic civilization and chaos type situation where people probably aren't even using money at all at this point in time. And this is just my my view of what can happen with a, with a US dollar that crashes, right? So I understand that it's very romantic, it's a very romanticized vision and idea about a collapsing dollar and the world going totally cryptocurrency. But I think what's more realistic is that you see something like a US dollar over the blockchain but still being backed by the, uh, the US dollar, right? Just like what's happening with JP Morgan, uh, and so I think that's very important to understand that just saying a fall and collapse in dollar doesn't just mean the dollar losing value. It means utter chaos, right? Uh, at a, at a level that is probably not going to be bearable for not just our civilization, but civilization in general. Um, and so I think that's important to note. But clearly in this article, uh, it kind of to me still is, uh, is still on par with the last video I did regarding that JP Morgan, uh, could symbolically be the end of Bitcoin and probably XRP and Ripple, unfortunately. And when I say the end, I don't mean the utter destruction of it. I mean, I believe like Ripple and Bitcoin could still exist alongside, uh, what's— what we're going to see happen with these banks and maybe even entire nations. But I think, uh, what you will see is a great hindrance and a stunting of, um, the growth of Bitcoin and the growth of, um, coins like Ripple XRP, right? And, uh, just looking at the, you know, the numbers and trying to be kind of realistic about it. But again, I, I don't think that means Ripple XRP will lose all value. I think it will continue to do business with smaller banks. It will continue to have a token that's transaction transacted with the public, but I think that it will start to dwindle into a very small pool of banks that are willing to take certain amounts of risk, um, you know, uh, that are willing to— these are going to be very small banks, obviously. Um, that's what I think what probably happened in that case, in that scenario. Um, but, uh, would love to hear you guys' opinions. I, I've kind of heard the arguments around online about Oh, it will never happen. People, you all don't understand what it means about the cross-border settlements and what are you gonna settle it in. But I think it would just hearken back to a similar situation like what happened with the Allied Nations who had a similar issue about how to settle their monetary policy. And they chose basically a fiat currency to do it with that they had a lot of faith and belief in. But not just faith and belief in just the paper and the government, but belief in the strength of the economy, the standard of living of the society, you know, who's, who's able to produce, what's the middle class look like. Another misconception is when we see large nations that seemingly are rich because they generally have control of all their all of the money of their population. And you go look and they have a dwindling or suffering middle class or no middle class at all, a great deal of poverty. Uh, the average standard of living is, is low quality. But when you go back to the government controlling the dollars, the government is rich. The government is rich and it's able to do certain things with the money, buy and invest in other foreign powers and be all with it. But they're not— it's not able to supply the basic needs to its people every day. So I think also what goes into that is looking at a society and a group of people where the government, the economy itself, seemingly to a degree takes care of the masses of the people, and you have a group of productivity amongst the population workforce able to produce and consume. Uh, and I think that all works into creating stability in the faith and the value of these, uh, of these systems. And that's not to build up, uh, something like the United States that, uh, you know, is a government, is a centralized authority. But this is a— but United States is a very complicated centralized authority deeply connected with other nations and other economies at an unprecedented level that makes it far different than just a kind of trivial look and imagining of what you get with just some nation that controls the money of the people. You know, this is a little bit more complicated in a geopolitical sense. But that's all I want to say on that, guys. I'd love to hear you guys' opinion about it. If you like content like this, don't forget to like, subscribe, and until next time, take care.