Stay away from Bitcoin, says JPMorgan CEO Jamie Dimon - here is why

At a virtual hearing hosted by the US House Committee on Financial Services on May 27, Dimon said that bitcoin, the largest cryptocurrency as per market cap, is not supported by any assets.

As the cryptocurrency mania continues to grip old and new investors alike, JPMorgan CEO Jamie Dimon has said that his views haven't changed and that people should avoid putting money into Bitcoin.

At a virtual hearing hosted by the US House Committee on Financial Services on May 27, Dimon said that Bitcoin, the largest cryptocurrency as per market cap, is not supported by any assets.

"Something that's not supported by anything I do not believe has much value. My own personal advice to people is to stay away from it," Dimon said, as per a BlockCrypto's report.

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Bitcoin slumped on May 28 to its lowest this week, taking losses sparked by a growing crackdown in China and environmental concerns to almost 40% so far this month.

His response was to a question posed by Ohio Representative Warren Davidson.

He further said that his opinion does not reflect those of JPMorgan's clients.

"That does not mean the clients don't want it. This goes back to how you have to run a business. I don't smoke marijuana, but if you make it nationally legal, I'm not gonna stop our people from banking it," he added.

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The JPMorgan CEO also said that the firm is "debating" whether it should make Bitcoin available in some "safe" way.

He also pitched for restricted regulations on cryptocurrency trading. "I do think the regulators who are a day late and a dollar short should be paying more attention to the future, payment for order flow, high-frequency trading, cryptocurrency, and put a legal, regulatory framework around it," he said.

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Comparing crypto to traditional assets, Dimon said, "My own personal view is it's nothing like fiat currency, it's nothing like gold. Buyer beware."

The chief executives of the US' largest banks went in front of Congress for a second day on May 27, facing questions ranging from inflation to their efforts to keep Americans in their homes after government aid to pandemic-hit mortgage holders expires this summer.

Apart from Dimon, Goldman Sachs' David Solomon, Bank of America's Brian Moynihan and Jane Fraser of Citigroup had also attended the hearing.

Also read: Bitcoin slumps 8% as it heads for bruising monthly drop