“If you borrow money to buy Bitcoin, you’re a fool,” says JPMorgan CEO
He highlighted his aversion to cryptocurrency, talked about regulation and attacked those who use other people’s money to invest in the market. “I think if you borrow money to buy bitcoin, you’re a fool,” he said.
In the conversation, the billionaire had no problem admitting that he doesn’t care about the power of the new market. But it is worth remembering that JPMorgan itself allows its Wealth Management clients access to funds exposed to cryptocurrencies.
His opinion was made clear in two sentences: “I don’t really care about bitcoin”; “I’m not a bitcoin buyer.”
Dimon also highlighted his vision of the future for cryptocurrencies, as soon as he was asked about the recent debates over regulation of the sector taking place in India. For him, people waste a lot of time and breath with the topic and he believes that the market will be regulated
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“Governments regulate just about everything. I don’t know if it’s an asset. I don’t know if it’s foreign exchange. I don’t know if it’s a currency. I don’t know if it’s the securities laws, but they’re going to do it. And that will constrain it to some extent. But whether it eliminates it, I have no idea and I don’t personally care. I am not a buyer of bitcoin. I think if you borrow money to buy bitcoin, you’re a fool. ” Dimon said, adding that if the market is regulated it wont mean that the price of Bitcoin can’t multiply in the coming years.
Dimon concluded with a warning as he highlighted his learning over time. He cited three financial bubbles to talk about speculation, one of the terms most used by Bitcoin critics.
“I remember when beanie babies were selling for $2,000 a pop. We all know about tulip bulbs. We all know about internet stocks. Speculation happens in every market around the world, including in communist countries. So, I don’t know why there is a surprise with a lot of speculation, particularly when there’s as much liquidity in the system.”
‘Beanie Babies’ — plush toys — were a phenomenon of the 1990s, when people paid hundreds or thousands of dollars in ‘stuffed’ collectibles, and saw the market crash and never recover.
The Dutch tulip bubble happened in the 1600s with the ‘tulip mania’. The plant devastated the Netherlands when the asset had a great speculative appreciation to, later, become worth nothing.
The internet bubble that Dimon referred to took place in the 1990s/2000s, when many investors invested in ‘.com’ (dot com) companies and soon after witnessed one of the biggest financial bubbles in history.