“If you borrow money to buy bitcoin, you are a fool” – Jamie Dimon

(Kitco News) JPMorgan CEO Jamie Dimon won’t start caring about bitcoin even if its price increases tenfold over the next five years.

“I don’t really care about bitcoin. I think people waste too much time and breathe on it,” Dimon told The Times of India in an interview. “I am not a buyer of bitcoin. I think if you borrow money to buy bitcoin you are a jerk. That does not mean that its price cannot be multiplied by ten in the next five. years. But I don’t care about that. “

Dimon also pointed out that market participants shouldn’t be surprised by the amount of speculation that is happening right now, especially in the crypto space.

“I remember when baby hats were selling for $ 2,000 a piece. We all know tulip bulbs. We all know about stocks on the Internet. Speculation occurs in every market in the world, including communist countries. So, I don’t know why there is a surprise there with a lot of speculation, especially when there is so much liquidity in the system, ”he said.

In addition to the speculative aspect, bitcoin needs to worry about regulation, Dimon added.

“It’s going to be regulated. 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 not if it’s the securities laws, but they’re going to do it. And that will limit it to some extent. But if that eliminates it, I have no idea and I don’t care personally, “a he commented.

Dimon’s advice is to be good at what interests you. “I learned a long time ago to figure out what you want, to do what you want and to be successful on your own,” he said.

On the US economy, Dimon was rather optimistic, estimating growth around 5-6% for the rest of the year.

“The table is pretty well set, consumers are in very good shape, they have a lot of extra cash, they have paid off their debts. Usually, when the debt is paid off, it is a sign of a recession. Rather, it’s a sign of the pump being primed, ”he noted. “Spending today is 20% higher than it was before Covid. Travel is picking up, albeit more slowly. Even though they are spending at this level, confidence is also rising.”

While many investors are starting to worry about a possible shutdown of the US government if the debt ceiling is not raised in time, Dimon seemed rather calm.

“The debt ceiling – we’ve had it before. It’s irresponsible of us to even approach it. No one is assuming there will be a default. If we did, it would be bad, but I think that they’ll get over it, ”he said.

The big geopolitical risk going forward is China, according to Dimon. But he does not see this particular risk having a considerable impact on the economic field.

“There are always risks, but people sometimes overestimate the risk and sometimes they underestimate it. Geopolitics has always been a risk. The biggest geopolitical risk today is China. But that won’t necessarily derail the economy. of the Delta variant, if you have another lethal variant, all bets are off on that one. So hopefully that won’t happen, ”he said. “China’s growth has slowed down. But the real problem with China is that people have to look a little bit more in the long term, and they’re managing their economy pretty well.”

Inflation remains a legitimate concern, especially with the massive amounts of quantitative easing and fiscal stimulus that global economies have experienced this year, the JPMorgan CEO added. But for him, the antidote is growth.

“They are powerful drugs in the system and stimulate growth in a slightly different way. We need growth. Growth is the antidote for everything. Inflation is probably a transitory element. It is currently at 3.5%. or “I’ll read about it. It will be November, December, January, based on the Delta variant. But if that happens and inflation rises, long rates will drop to 3% or 3.5% over the next 18 months or so, you will be fine. Growth is much more important than this inflationary figure or that bond rates rise, ”he explained.

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