JPMorgan, the global investment bank has advised investors to avoid investing in cryptocurrency. “Cryptocurrency has no intrinsic value. You are basically buying a token,” he said. “I would be very careful.”
Jamie Dimon from JPMorgan warns Crypto-investors
JPMorgan Chase and Co’s (JPM.N) chief executive officer, Jamie Dimon, shared his thoughts on the U.S. economy, inflation, China, and cryptocurrency in an interview with CBS Boston, published Wednesday.
His question was whether or not young people should put their money into crypto. This is in response to several advertisements encouraging them to do so, including one featuring Tom Brady with his wife Gisele Bundchen.
“I’m a skeptic,” Dimon replied. “I mean blockchain is real if we use it for certain things. Parts of defi (decentralized finance) are real.” However, the JPMorgan boss emphasized:
Cryptocurrency does not have an intrinsic value. Cryptocurrency is essentially buying tokens. Why it has a lot of that I don’t know, and I think there’s so much speculation taking place in stocks and securities and crypto and stuff like that. It would be prudent for me to take extra precautions.
Nonetheless, Dimon said: “I defend people’s right to do it in a free country. I’m not going to do it.”
Reuters published Dimon’s comment on cryptocurrency on Tuesday. “It is not really a currency … It is hysteria,” the JPMorgan CEO was quoted as saying.
Dimon is a Bitcoin skeptic since the beginning. In October, he said that bitcoin is “worthless,” questioning the cryptocurrency’s limited supply. He also said regulators will “regulate the hell out of it.” In May, he advised people to stay away from cryptocurrency.
JPMorgan’s CEO acknowledged the interest of his clients in crypto assets and said that the bank now offers some cryptocurrency investments.
The firm’s analysts even doubled down on their prediction that the price of bitcoin will hit $146K in the long term. They see a “bullish outlook” for bitcoin as inflation concerns push the price of BTC higher.
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