JPMorgan CEO Jamie Dimon has issued a warning to investors about investing in bitcoin. “Cryptocurrency has no intrinsic value. You are basically buying a token,” he said. “I would be very careful.”
Jamie Dimon, CEO of JPMorgan Chase & Co, discussed the U.S. economy, inflation, China, and cryptocurrencies in an interview with CBS Boston released Wednesday.
He was questioned if young people should invest in cryptocurrency in light of recent ads urging investors to invest in cryptocurrencies, such as one featuring Tom Brady and his wife Gisele Bundchen.
Dimon said, “I’m a skeptic.” “I mean, blockchain is real if we use it for certain things.” Parts of defi (decentralized finance) are real.” However, JPMorgan’s CEO 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 stated, “I defend the freedom of people to do it in a free nation.” I’m not going to go through with it.”
Reuters also published Dimon’s comments on bitcoin on Tuesday. “It is not truly a money… “It’s hysteria,” JPMorgan CEO Jamie Dimon was reported as saying.
Dimon has long been skeptical about bitcoin. In October, he declared bitcoin to be “worthless,” calling the cryptocurrency’s finite quantity into question. In addition, he stated that regulators will “regulate the hell out of it.” In May, he recommended consumers to avoid cryptocurrencies.
However, JPMorgan CEO Jamie Dimon stated that his clients are intrigued in this asset class, and the bank is already providing crypto investments to clients.
The firm’s experts even increased their long-term projection for bitcoin’s price to $146,000. They expect a “bullish outlook” for bitcoin as inflation fears drive up the price of BTC.