“Stupid”: Jamie Dimon on Cryptocurrencies

JPMorgan CEO Jamie Dimon made some critical comments on Bitcoin and other cryptocurrencies.

He expects Bitcoin to be closed down eventually, since governments don’t like the idea of losing control over currency, or not knowing where it is. The reason that hasn’t happened already is that the sector is still too small for governments to actually bother, in his opinion.

On the other hand, he says that Bitcoin is a better choice as a currency if you live in Venezuela, but then goes on noting that could not possibly be true for the US dollar.

If so, there is not much incentive for the American government to outlaw Bitcoin. If the dollar is such superior money that no one would want to use Bitcoin instead, why bother?

On the other hand, if American citizens rightly conclude that they prefer Bitcoin to the dollar, why should the government be allowed to force them to stay with an inferior option? I recall that the United States is a democracy, governed by the people. The “government” is supposed to do that the people want.

I also agree that the time for this fight will be later. At the very small market cap of a measly $0.064 trillion Bitcoin has right now, there is no question of Bitcoin replacing the dollar any time soon.

I also agree with his idea that “trading Bitcoin is stupid”.

“Trading” involves selling bitcoins for inferior currencies like the dollar under certain market conditions. That’s stupid, since in the long run bitcoin prices are going way up, just like they did in the two years since the last time Dimon offered this opinion.

The thing to do is to buy bitcoin and hodl (this is the correct spelling in this context) it long term.