26 November 2021 | 7:00 am
The CEO of global investment bank JPMorgan has warned investors about investing in cryptocurrency. “Cryptocurrency has no intrinsic value. You are basically buying a token,” he said. “I would be very careful.”
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.
He was asked whether young people should invest in crypto in reference to several commercials encouraging investors to put money in cryptocurrencies, such as a commercial featuring Tom Brady and 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 has no intrinsic value. You are basically buying a token. 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. I would be very careful.
Nonetheless, Dimon said: “I defend people’s right to do it in a free country. I’m not going to do it.”
On Tuesday, Reuters also reported Dimon commenting on cryptocurrency. “It is not really a currency … It is hysteria,” the JPMorgan CEO was quoted as saying.
Dimon has always been a bitcoin skeptic. 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.
However, the CEO of JPMorgan acknowledged that his clients are interested in this asset class and the bank is now offering some crypto investments to clients.
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.
What do you think about the warning by JPMorgan CEO Jamie Dimon? Let us know in the comments section below.