JPMorgan Chase CEO Jamie Dimon stated in a U.S. Congress hearing that crypto tokens like bitcoin are "HT0_ decentralized Pozi schemes."
JPMorgan CEO Jamie Dimon Calls Crypto Ponzi Schemes
Jamie Dimon, CEO of JPMorgan Chase & Co. shared his views on cryptocurrencies in a congressional hearing Wednesday.
Rep. Josh Gottheimer (D-NJ), asked Dimon about the rapid growth of digital assets. Dimon responded by emphasizing the importance of seperating cryptocurrencies from other innovations, such as blockchain, decentralized financing (defi) and "tokens which do something".
According to the executive,
Crypto tokens, which you refer to as currency, are a subject I am skeptical about. They are Ponzi schemes that have been decentralized.
He continued, "And the notion it's good to anybody is unbelievable." JPMorgan boss referred to the fact that crypto is responsible for billions of dollars in losses each year. He linked crypto to crimes like ransomware payments and money laundering as well as theft. He stressed that crypto is "dangerous."
JPMorgan's executive spoke out about stablecoins. He said that they would not pose a problem if properly regulated. Dimon said that a stablecoin would be fine, as it is a type of money market fund and properly regulated. He stated that JPMorgan is a "big user" of blockchain.
Dimon, a long-time bitcoin skeptic has advised investors to be cautious about investing in cryptocurrency. He stated that they do not have intrinsic value and cautioned them against making mistakes. Dimon previously stated that bitcoin was worthless and challenged the limited supply of BTC. However, the JPMorgan chief has repeatedly stated that defi and blockchain are real. The global investment bank stated that it expected increased blockchain use in finance in May.
JPMorgan offers crypto-related investments and has its own JPM coin. It also has a lounge in metaverse. JPMorgan's analysts also believe more in bitcoin and cryptocurrency than its CEO. Nikolaos Panigirtzoglou, an analyst at JPMorgan, published a May report that stated that the bank had replaced "real property with digital assets as our preferred alternate asset class alongside hedge funds".
Dimon shared recently his predictions regarding the future direction of the U.S. economic system. He warned in August that there was more to the future than a recession. He warned of an economic storm in June and advised businesses and individuals to be prepared for it.
What did Jamie Dimon, CEO of JPMorgan, say about cryptocurrency comments? Comment below.
Frequently Asked Questions
What Is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals are sometimes called “bullion.” Bullion refers simply to the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This means you’ll receive dividends every year.
Unlike regular IRAs, precious metal IRAs don’t require paperwork or annual fees. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
Should You Purchase Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider whether you will actually need the money that you are saving for retirement. You can save for retirement and not invest your savings in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each one offers different levels security and flexibility.
- Finally, remember that gold doesn’t offer the same level of safety as a bank account. It is possible to lose your gold coins.
You should do your research before buying gold. If you already have gold, make sure you protect it.
Are You Ready to Invest in Gold?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you’re unsure about which option to choose then consider investing in both.
You can earn potential returns on your investment of gold. It is a good choice for retirees.
Most investments have fixed returns, but gold’s volatility is what makes it unique. Therefore, its value is subject to change over time.
However, this does not mean that gold should be avoided. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit of gold is that it’s a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
You can always access gold as long your place it safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Also, you’ll reap the benefits of having some savings invested in something with a stable value. When the stock market drops, gold usually rises instead.
You can also sell gold anytime you like by investing in it. Just like stocks, you can liquidate your position whenever you need cash. You don’t even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn’t try to put all of your eggs into one basket.
Don’t purchase too much at once. Start small, buying only a few ounces. Continue adding more as necessary.
Don’t expect to be rich overnight. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
How much should your IRA include precious metals
You should remember that precious metals are not only for the wealthy. You don’t need to have a lot of money to invest. There are many ways to make money on silver and gold investments without spending too much.
You might consider purchasing physical coins, such as bullion bars and rounds. Stocks in companies that produce precious materials could be purchased. You might also want to use an IRA rollover program offered through your retirement plan provider.
You’ll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
How much are gold IRA fees?
$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
A majority of providers also charge annual administration fees. These fees vary from 0% to 11%. The average rate is.25% each year. These rates are often waived if a broker like TD Ameritrade is used.
How much should you have of gold in your portfolio
The amount of capital required will affect the amount you make. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. You don’t need to worry about paying rent every month. It’s only one monthly payment.
Consider what type of business your company will be running. My website design company charges clients $1000-2000 per month depending on the order. You should also consider the expected income from each client when you do this type of thing.
Because freelance work pays freelancers, you won’t likely get a monthly income if you do freelance work. Therefore, you might only get paid one time every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
Who holds the gold in a gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it’s not wise to keep it if you won’t use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
To find out what options you have, consult an accountant or financial planner.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
irs.gov
cftc.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
forbes.com
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. It was also traded internationally due to its high value. There were different measures and weights for gold, as there was no standard to measure it. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. To do this, they decided that some of their excess gold would be sold back to Europe.
Many European countries didn’t trust the U.S. dollars and started to accept gold for payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The price of gold has risen significantly since then. Even though the price fluctuates, gold is still one of best investments.
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By: Kevin Helms
Title: JPMorgan CEO Jamie Dimon Tells Congress Crypto Tokens Like Bitcoin Are ‘Decentralized Ponzi Schemes’
Sourced From: news.bitcoin.com/jpmorgans-jamie-dimon-tells-congress-crypto-tokens-like-bitcoin-are-decentralized-ponzi-schemes/
Published Date: Thu, 22 Sep 2022 23:30:41 +0000
