JP Morgan was criticizing bitcoin for a very long time and then suddenly became bullish. However, a couple of weeks ago, JP Morgan became bearish again. And now, JP Morgan even worries about the bitcoin network’s capability.
JP Morgan criticized El Salvador’s decision to recognize bitcoin as a legal tender. Not only would that impact El Salvador’s monetary policy significantly, but also the bitcoin network’s capability.
The banks’ argument:
“Daily payment activity in El Salvador would represent 4% of recent on-chain transaction volume and more than 1% of the total value of tokens which have been transferred between wallets in the past year.”JP Morgan report
Indeed, bitcoin is highly illiquid. On an annual average, more than 90% of the current bitcoin supply does not get traded. But bitcoin has become a store of value over time. So, if El Salvador will impact the capability of the bitcoin network is yet to see.