While banking giant JPMorgan CEO Jamie Dimon has no love lost for Bitcoin and continues to blast the leading cryptocurrency, he can still see the digital asset rising 10x in value in coming years.
As of writing, Bitcoin is trading just above $43,400, and a 10x jump would mean BTC would be worth $430k by 2026 end.
Dimon shared his views on Bitcoin in an interview with the Times of India, where he yet again criticized the cryptocurrency, saying, “I don’t really care about Bitcoin.”
According to him, “people waste too much time and breath on it.” Not to mention, he doesn’t know if it’s an asset, foreign exchange, or a currency.
What he does know is that the cryptocurrency “is going to be regulated” because “governments regulate just about everything.”
Bitcoin, he further said, would be subjected to securities laws “that will constrain it to some extent.” Personally, he’s not a buyer of bitcoin and thinks,
“if you borrow money to buy bitcoin, you’re a fool.”
But at the same time, “that does not mean it can’t go 10 times in price in the next five years,” and the billionaire CEO doesn’t care about that.
Dimon compared the crypto asset to beanie babies, tulip bulbs, and internet stocks, saying,
“Speculation happens in every market around the world… 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.”
While Dimon personally hasn’t shown interest in the cryptocurrency publicly, the bank has started to allocate to the market and allowed its wealthy clients to invest in the asset class.
During his interview, the CEO also talked about the fear of inflation which he said is a “legitimate concern” because “the world has embarked on massive amounts of quantitative easing and fiscal stimulus. They are powerful drugs into the system.”
But with growth being the antidote for everything and money printing driving growth, he sees inflation as transitory.
“The stock market anticipates healthy growth and earnings. The bond market may not anticipate that, and that may be because the flows of money and liquidity are so high — it’s like a tsunami coming over them.”
He further commented on banking, which he says governments “don’t do well.” As for bank privatization, he said it’s about “transparency, rule of law, ability to operate governance, accounting, all those various things,” which, if done right, could provide “very vibrant banks.”