JPMorgan Chase Bank: Crypto Assets Would Only Be Valuable In Dystopian Economies
It looks like the investment bank JPMorgan Chase is set to continue its crusade against cryptos. The company has recently emitted a new note to its clients affirming that the staff was very skeptical about cryptos and their value.
According to the report, cryptocurrencies would only be worthy assets in a completely dystopian situation in which the investors have lost all their confidence in all major reserve assets and payment systems around the world. This means that cryptos could only thrive in the crisis of the dollar, euro, gold, and other payment methods which are already more established in the industry.
The bank believes that, while the crypto assets differentiate from the traditional ones because they do not have a direct correlation with them, they are not the best idea for diversification of your portfolio at the moment. The argument is that the little correlation does not have a lot of value if the hedged asset is in a bear market, which cryptos are now.
Controversies also sparked when the bank affirmed this week that Bitcoin is not even worth mining anymore as the prices are simply too low at the moment.
As the market plummeted last year from its value of $20,000 USD in December 2017 from around $3,500 USD now, Bitcoin is down 83%.
JPMorgan Chase CEO Is Notoriously Anti-Bitcoin
Nothing that the company has affirmed is actually very surprising at all, though, especially because of three specific factors: the first is that traditional banking is generally not very enthusiastic of Bitcoin, the second is that the market is, in fact, during a very bad time, and finally there is the fact that the CEO of the company is completely anti-Bitcoin.
Jamie Dimon, the CEO of JPMorgan Chase, is well known for his anti-crypto positions and remarks. It goes way back. He has declared that Bitcoin is a fraud back in September 2017 and affirmed that it was a bubble way worse than the historical tulip bulbs bubble case.
When Bitcoin was at the top in January 2018, he affirmed that he regretted calling it a fraud, however, he was still very negative about the asset at the time.
JPMorgan, the institution, though, believes in cryptos a little bit more. The bank believes that, if cryptos stabilize and become a better asset, they might serve for diversification purposes in the future, but not now.