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 regulated like a money market fund. 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
Do You Need to Open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items have been around for thousands of years and represent real value that cannot be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. Do not forget about the future!
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Open the account by filling out Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. But, you'll only be able to purchase physical bullion. You won't have the ability to trade stocks or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option may be offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they're not as liquid as stocks or bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity (IRA), is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs can be made without tax.
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious metals refer to elements with a very high value relative other commodities. This makes them valuable in investment and trading. Gold is today the most popular precious metal.
But, there are other types of precious metals available, including platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It also remains relatively unaffected by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. However, the prices of precious metals do not always move in sync with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They become less expensive and have a lower value because they are limited.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Can the government take your gold
The government cannot take your gold because you own it. You earned it through hard work. It belongs entirely to you. This rule may not apply to all cases. Your gold could be taken away if your crime was fraud against federal government. If you owe taxes, your precious metals could be taken away. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. They are both simple to purchase and sell, and they have been around for a long time. They are a great way to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: This precious metal is also becoming more popular. It's durable and resists corrosion, just like gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used for jewelry making. It is also very affordable in comparison to other types.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Should You Buy or Sell Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Some experts believe that this could change very soon. They say that gold prices could rise dramatically with another global financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some things you should consider when considering gold investing.
- Consider whether you will actually need the money that you are saving for retirement. It's possible to save for retirement without putting your savings into gold. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each offers varying levels of flexibility and security.
- Remember that gold is not as safe as a bank account. Losing your gold coins could result in you never being able to retrieve them.
So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
External Links
cftc.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
finance.yahoo.com
How To
3 Ways to Invest in Gold for Retirement
It is important to understand the role of gold in your retirement plan. There are many ways to invest in gold if you have a 401k account at work. It is also possible to invest in gold from outside of your work environment. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are the rules for gold investing:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, instead, transfer cash to your accounts. This will help protect you against inflation and keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. It's easier to sell physical gold coins rather than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify your Portfolio. Also, diversify your wealth and invest in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
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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
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