Jamie Dimon: I Expect Government to Control Crypto

dimon bitcoin

Jamie Dimon, the CEO and chairman of investment bank JPMorgan who said last year that Bitcoin was a “fraud,” seems to have changed his mind on the matter.

Nevertheless, Dimon says, don’t expect governments to stand back and do nothing — no currency exists outside their control.

While at a JPMorgan conference in San Francisco on Jan. 9, Dimon said he regretted comments he made earlier, in September 2017.

This is quite a change of heart for someone that said he would fire any JPMorgan employee for trading Bitcoin on company accounts for being “stupid.”

Dimon went on to say that he doesn’t have any interest in crypto himself, and that he believes the governments will not take kindly to its decentralized nature.

Asked about the underground economy around cryptocurrency in 2015, Dimon repliedIt’s just not gonna happen, you’re wasting your time. This is my personal opinion. There will be no real non-controlled currency in the world. There’s no government that’s gonna put up with it for long.”

Whether Dimon is correct or not, there is no denying the growth and power of cryptocurrency right now. As of today, a single Bitcoin is worth more than $14,000 USD.

The total crypto market cap is north of $700 million and made up of almost 1,400 coins. What started as a project in 2007 by Satoshi Nakamoto, the mysterious and unidentified inventor of Bitcoin, is now a worldwide phenomenon.

Interest from investors has grown substantially but not everyone is looking to generate profits from cryptocurrency. Digital currencies offer users a plethora of benefits, earning the attention of even average consumers.

For one, digital coins can provide a higher level of anonymity as transactions are not associated with your personal identity. For those that value privacy, this is huge advantage.

Sales taxes also can be avoided with cryptocurrency, appealing to people in high VAT countries. Financial authorization and transfers can occur in an instant with little to no fees.

Government coins

Some governments are considering implementing digital currencies themselves. Venezuela says it will create an oil-backed cryptocurrency, to be called the Petro.

In fact, Dimon believes that the most successful coins will be those that are backed by a government. “You can have crypto yen and dollars and stuff like that. ICOs you have to look at individually,” he said.

An ICO is an initial coin offering, similar to an initial public offering most are familiar with. When an ICO campaign is launched, a percentage of the cryptocurrency is given to early supporters in exchange for legal tender.

Doing on offering aids startups by allowing them to bypass the difficult process of receiving funding from banks or venture capitalists.

For now, cryptocurrency remains a decentralized and a quickly evolving technology. Whether governments will control it as Dimon believes is hard to say, though it seems that crypto is here to stay in one form or another.

Iaccino: Bitcoin a Better Hedge Than Gold? Look at the Data

Bob Iaccino, editor of the Stock Think Tank, sees the relative stability of Bitcoin compared to gold as a sign that its legitimacy as a hedge is coming into view.

costco cost

The Dividend Stock That Belongs in Every Portfolio

If you are like me, then you are always looking for great companies that are on sale. What makes the company a bonus buy is when it also pays a

Bitcoin and Gold Slaying Stocks: Why Not Own Both?

The Bitcoin vs. gold battle rages on as the two are best-performing assets of 2020. The price of gold is up 26% this year, while Bitcoin has soared 87% —

Companies Pile On Debt. Big Headaches Later for Investors?

How have companies handled the cash crunch during this pandemic? I came across an insightful in-depth research report this past week that had a few interesting charts on this. See

Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people