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JPMorgan backs Bitcoin; considers it the best alternative asset

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JPMorgan backs Bitcoin; considers it the best alternative asset
JPMorgan backs Bitcoin; considers it the best alternative asset

According to the latest cryptocurrency news, JPMorgan has been optimistic about the Bitcoin cryptocurrency by backing it and considering it as the best alternate asset. According to an investment banking company from America, the fair price of Bitcoin is 28% higher than its current level. Recently, it made a statement about cryptos becoming the alternative assets by outshining real estate proving that they do not fall under usual categories like bonds and stocks. 

Bitcoin is the first cryptocurrency founded by an anonymous figure named Satoshi Nakamoto. The crypto became operational on 3rd January 2009. It is prone to market volatility because of which it has been through ups and downs in its price over the years. Last year in November, Bitcoin reached its all-time-high price at $68,000. Currently, it has dipped below $30, at $29,071.20.

What does the CEO of JPMorgan say about crypto?

According to the chief executive officer of JPMorgan Chase, Jamie Dimon, he is not much into crypto but will support people’s right to do investment in it. He does agree with some features of cryptocurrency. But along with it, he also cautioned about the risks associated with it, indicating one must be careful of how much money he is spending on crypto.

Besides accepting some aspects of cryptocurrency in terms of its being a digital technology, also admits the flaws in the banking industry. He also gave the opinion that everything is not bad about crypto. The CEO of the investment bank further stated with an example saying that if he has to send money like say $200 to a friend in a foreign land, then it will take at least 2 weeks, with the price of $40. Whereas it takes seconds with crypto. 

So for him, it will work and will see mainstream acceptance by big players including banks. However, Jamie did not clear about which crypto he is indicating, is it JPM Coin, the native crypto of his company JPMorgan Chase, CBDCs, or stable cryptocurrencies. Earlier he has mentioned using Liink, a blockchain network that helps in sharing of complex information by banks. 

He also added about the use of blockchain for transferring tokenized USD deposits with JPM Coin. If you visit the official website of JPM Coin website, then you will come to know that it provides a facility for real-time value movement, and helps in resolving the usual problems related to conventional cross-border payments. 

‘Bitcoin is worthless, has no intrinsic value’

Jamie Dimon might not be too much into crypto but he has been a crypto skeptic for a long time. In 2021 November, he cautioned people about the risk associated with the crypto investment. It also cited that crypto has no intrinsic value. 

In the same year in October, he even questioned the limited supply of Bitcoin, plus, it has no worth. In a letter to a shareholder in April, the CEO of JPMorgan admitted the reality of blockchain and defi (decentralized finance). Adding to it, Jamie has opened provisions for numerous products of crypto investment. 

Quick facts about JPMorgan Chase

  • JPMorgan Chase & Co. is a multinational investment bank in America. 
  • The headquarters of this financial services holding is located in New York City and is constituted in Delaware. 
  • Last year on 31st December, JPMorgan Chase is known to have become the largest bank in the U.S.
  • According to market capitalization, it is the largest investment bank known in the world.
  • In terms of total assets, JPMorgan Chase stands 5th in being the largest bank with total assets of around US$3.744 trillion. 
  • JPMorgan Chase is known to be a custodian and universal bank. 
  • The brand is utilized by private banking, investment banking, treasury services divisions, plus, asset and wealth management. 
  • The House of Morgan came out of the association of Drexel, Morgan & co. It was renamed as J.P.Morgan & Co. in 1895. 
  • JPMorgan was founded 21 years ago on 31st December 2000. 
  • The key people behind it are Jamie Dimon (Chairman & CEO), Jeremy Barnum (CFO), and Daniel E. Pinto (President & COO).
  • The financing of the world’s first billion-dollar corporation USSC (United States Steel Corporation) was done by J.P. Morgan & Co.
  • JPMorgan even supplied $62 million in gold to the U.S. government regarding a bond issue and reinstated the treasury surplus of $100 million.

Final words

No matter the CEO of JPMorgan, Jamie Dimon is not much into the crypto, still, he has acknowledged the worth of Bitcoin, considering it as an alternative asset to real estate. But besides that, he also cautioned people about the risk of crypto investments. He defends the right to invest in it. To follow more updates on the crypto world, log on to the leading crypto website, Cryptoknowmics. It is the best guide for crypto enthusiasts who wish to explore different topics with desired results. Here you can know about Dogecoin price prediction for 2035

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