Dimon is suffering from Default Bias

As you most likely have already known that the JPMorgan CEO, Jamie Dimon has famously claimed that bitcoin was a fraud and would soon collapse and disappear. I just read something about Default Bias (DB) and I think Dimon is among those suffering from DB!

 

So what is DB? Just ask yourself what you will do when you get a new iPhone. Do you change a lot of settings yourself or just go with the default setting? I bet most people (me included) will only go with the default setting or at least most of the default setting. Why so? Because this is driven by a fundamental psychologic nature of human beings: we believe the pain of losing is greater than the joy that comes from gaining. Default is usually the most common choice with much lower risk of failing or losing than a new setting. This is especially true when we are facing life-changing but brand new technical innovations, more so if they are extremely early and poorly understood. Bitcoin and the underlying technology, blockchain (BC), is at this stage. We have seen almost identical reactions when the Internet was newly born.  Here's a quote from U.S. astronomer Clifford Stroll in 1995: “Visionaries see a future of telecommuting workers, interactive libraries and multimedia classrooms. They speak of electronic town meetings and virtual communities. Commerce and business will shift from offices and malls to networks and modems. And the freedom of digital networks will make government more democratic. Baloney.”

 

Even the inventor of Ethernet, Robert Metcalfe, didn't believe in the Internet. "I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse,"  

 

Sounds familiar? Next time when you hear something like that about bitcoin/BC, just laugh. I will for sure!