Cryptocurrency is the biggest investment opportunity of the new decade, nor is it close. Retail investors, billionaires and institutions alike have been able to generate millions of dollars investing in digital currency. But, as is the case with any new and misunderstood technology trend, there are many people who disagree. This month, there is a surprising new bearish crypto report coming out of the JPMorgan Chase (NYSE:JPM) camp. The crypto report “Maltese Falcoin” brings together the crypto industry, and has many investors talking.

The report is shocking the investment world today; the idea that a head of an investment bank the size of JPMorgan is rejecting this asset class that is proven profitable is stupendous. But, it’s real; the 30-page report is based on the refusal of one prominent crypto analyst, specifically Bitcoin (BTC-USD).

So, what does this report compile? Here’s what you need to know.

The Maltese Falcoin Crypto Report See JPMorgan Takes a Pessimistic Position on Bitcoin

• The new long report from JPMorgan is the Report Maltese crypto “Falcoin”.. The report is authored by the head of investment bank Asset and Management, Michael Cembalest.
• The name of the report comes from the 1941 film The Maltese Falcon. In the film, the characters seek ownership over a rare artifact. Ultimately, the artifact turns out to be fake and worthless in the end.
• This name sets Cembalest’s bearish take on crypto: while investors continue to invest in Bitcoin, the use case for it as a store of value is actually not there. He says not enough people actually use the currency to make it a reliable store of value. Cembalest illustrates this point by showing that crypto is far more volatile than the gold market – one of the most popular value store games.
• Cembalest’s criticism does not end with volatility; rather, it sticks to pump and dump schemes, exchange hacks and front-run by crypto miners as drivers of volatility and bearish signals in their own rights.
• However, Cembalest did not just blast cryptocurrency all the way through the report. He admits that the 2008 financial crisis created an obvious “gap of trust” between citizens and central banks and treasuries. As an alternative investment, crypto has been very successful in creating wealth. Rather than argue this point, Cembalest’s argument rests on the idea that the value of cryptocurrency is unfounded and driven only by speculation.
• The report not only presses against the value of crypto but also against existing use cases. Cembalest argues against crypto as a means of international money transfers. Users need bank accounts in the countries of destination of their assets; therefore, he argues that the use case is no better than traditional remittances.
• The analyst also takes DeFi, dismissing it as “an over-collateralized crypto loan to other crypto-holders.” He says these investors simply use the loan to buy more crypto or avoid capital gains taxes.
• As for non-fungal tokens (NFTs), Cembalest takes a surprisingly bullish stance. Defends the market by saying that tastes are in the hands of the individual; interest in NFT art does not differ from interest in works of artists who create physical pieces.
• Overall, the report is pretty shocking for a fast-growing market, even with the massive market correction that cut $ 1 trillion in value from asset class. The Cembalest report is in direct opposition to many investment banks at present; both Bank of America (NYSE:BAC) u Goldman Sachs (NYSE:GS) are bullish on the crypto currency, according to their most recent reports on the issue.

Article printed by InvestorPlace Media, https://investorplace.com/2022/02/maltese-falcoin-crypto-report-9-things-to-know-about-jpmorgans-bearish-bitcoin-report/.

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