JPMorgan Says Crypto To Gain Value In ‘Dystopian’ Economy
JPMorgan Chase is known for its undying crusade against cryptocurrencies. Just recently, it once again showed how opposite its beliefs are towards digital currencies. According to the official report, the investment bank released a new note to its clients suggesting that it is skeptical about cryptos and their value.
A ‘Dystopian’ Situation
The aforementioned company said that digital currencies would only become worthless assets and that they would only exist in a “dystopian” situation. From there, investors would eventually lose their confidence in all major reserve assets and/or payment systems across the globe. In other words, cryptocurrencies are only capable of thriving in the crisis of gold, euro, dollar, and other payment methods – all of which are deemed more established in the industry.
It holds true JPMorgan Chase believes that there is a huge difference between digital currencies and the traditional ones, especially since they do not really have a direct correlation. However, the bank claims that they are not to be considered the best idea when it comes to the diversification of a person’s portfolio at least right now.
There is an argument here, something that the bank is keen to defend from time to time. Basically, it refers to the little correlation, which does not necessarily have a lot of value. This is particularly the case if the hedged asset is to be deemed in a bear market, the type where cryptocurrencies are currently situated.
The Anti-Bitcoin CEO
Another controversy sparked when the bank claimed that Bitcoin, contrary to popular belief, is not even worth mining. According to the company, this is because the world’s leading digital currency has prices that are way too low at the moment.
It is not really a surprise for the company to go against Bitcoin and other cryptos. For starters, the world of a traditional bank is not fond of BTC. In addition, the market is currently in a bad shape, which is quite understandable. But perhaps the most significant among these is the bank’s CEO, who is known to be an anti-Bitcoin.
The person in question is Jamie Damon, the CEO of the company, and is famous for his anti-digital currency positions and comments. Back in September 2017, he said that Bitcoin is nothing but a fraud. Plus, he suggested that the crypto is worse than the infamous tulip bulbs bubble case. Although he once mentioned about his regrets for calling BTC a fraud (this was after the cryptocurrency topped in January 2018), his views towards it were still quite negative.