Jamie Dimon had a lot to say about Bitcoin the other day.
[youtube https://www.youtube.com/watch?v=X8Sywc3ko_g?rel=0]
We should heed his warning. Just like they should have listened to Steve Ballmer, CEO of Microsoft in 2007. “The Iphone is too expensive,” he said. “It wouldn’t appeal to the business professional. Apple is the incumbent and they are going to have to play by our rules.” It’s almost 10 years to the day and Apple just released the Iphone X, a 1K+ phone.
[youtube https://www.youtube.com/watch?v=eywi0h_Y5_U?rel=0]
Here… Lets go way back on to 1946……“Television won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.” — Darryl Zanuck, 20th Century Fox. Sorry, I couldn’t find a video for this one.
I can go on and on. If you want, here are some other random predictions here. Seems like a lot of people were just flat out wrong on Apple.
Executives, especially those who are incumbents and gatekeepers in their industry, are rarely capable of seeing disruption. Actually, the best way to foreshadow a key challenge to basic industry assumptions is to look at the industry leaders and watch them make comments like Jamie Dimon did above. While some may argue, he’s talking about bitcoin and has much respect for the technology behind it ( JP Morgan is investing a ton of money into blockchain companies), I believe his comments on bitcoin are less about the coins and more about control. A decentralized reality for a control focused financial industry is scary. It reminds me of the Blockbuster snub on Netflix. To say there would be a day when people didn’t need physical copies due to the mass adoption of the high speed internet would have been a tough pill to swallow.
The people who face the biggest threat from disruption seem to call it wrong. Sometimes its just theater. I’m sure shareholders don’t want to hear there’s a technology/platform that could fundamentally change how their industry works. There’s definitely a confidence game going on with many executives, but I believe there’s a way to be confident and realistic.
We should listen to Jamie Dimon. His comments are a prelude to a major shake up in the financial industry.