The Death Of Bitcoin And The Future Of Cryptocurrencies

Sep. 04, 2017 9:45 AM ETCOIN-OLD, BCS, CS, CM, HSBC, MUFG, STT, DB, SAN, BK, NEXGY, BTC-USD, CM:CA63 Comments
John Lohr profile picture
John Lohr


  • The utility settlement coin is a cryptocurrency issued by the world's biggest banks.
  • It's the end of the crypto as we know it.
  • Warning: You may find some satire in paragraphs 5 and 6.

So far, other than isolated situations, cryptocurrencies have not been used to facilitate commerce in the Mom and Pop World. They have been speculation vehicles that have drawn in people hypnotized by the out of this world run up in prices: $270 to $4700 in 8 months. Too good to be true. Sheep lured by the “Don’t miss out on this” psychology have bought, and bought and bought. To what end? Short-term profits, sure.

But, what’s missing in the crypto world has been a legitimizing event that brings them into everyday commerce. Even the millennial commerce of “all things tech” hasn’t seen it. Those lucky speculators who bought the hype will say that that lack of utilization is the very reason they were attracted in the first place.

I want to remind them and everyone else that you haven’t made a dime (10 cents) until you SELL what you bought. I also want to remind them and everyone else that all securities have up and down swings. ALL. I hear, “Well, this time is different.” That was what they said about everything new from automobiles, to dot-coms, to, well, crypts. No it’s not different. You only find out in hindsight.

So quietly last week comes a business event that could be the future of cryptocurrencies - the legitimization of the method that will transform it from a novelty cocktail party collectible like a stuffed bb-9E into a currency suitable for a Big Mac.

Six of the world’s largest banks led by UBS (UBS) and some others that have signed on are teaming up to create and accept a utility settlement coin - a new cryptocurrency. It is supposed to be used for clearing and settling transactions over blockchain technology. Backed and promoted by Barclays (BCS), Credit Suisse (

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John Lohr profile picture
JOHN LOHR John is widely regarded as a top legal expert on fiduciary responsibility relating to the investment management profession, John is a founding father of the investment management consultant's profession and has personally trained over 100,000 financial professionals. Additionally, he has counseled major Wall Street firms and associations in various aspects of managed account programs, and has trained and consulted to firms on corporate legal, compliance, fiduciary responsibilities and business development issues specific to the investment management industry. A former Banker and teacher and college adjunct, John started his securities representation in 1983, joining EF Hutton in 1987 where he served as the director of Portfolio Management Programs and General Counsel of the Consulting Group. Later, he started his own law firm, specializing in employee benefit, ERISA law and securities law. In 1995, he co-founded The Lockwood Group of companies, where he served as Chief General Counsel and Corporate Secretary, as well as President of Lockwood Financial Services, Inc. Upon retiring from Lockwood in 2002, John devoted his efforts to Howling Wolf Enterprises, a training company and a publisher of books and articles on Investment and Financial issues as well as fiction. In 2011 with partners known in the Investment management business he founded The Learning Network, whose mission is to improve Financial Literacy globally for financial professionals and investors. His current mission is The Ethical Treatment of Somebody Else’s Money, found at In 2010 the Money Management Institute designated him an "architect of the managed solutions industry" awarding him their Pioneer award for Lifetime Achievement in Wealth Management.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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