JPMorgan CEO Jamie Dimon calls Crypto a Scam

I have mined crypto coins a few times.  I tried bitcoin a few years ago, and more seriously 2 years ago. Last fall I messed with Etherium.  Since I live in the NY metro area, my electric rates are some of the highest in the nation.  They were never cost effective enough at the time of mining to encourage me to sustain mining for more than a few weeks or so.  I never earned more than a small fraction of a Bitcoin or the Etherium coin.  I never expected them to rise to the heights they rose to last December. If I had faith in those coins, then particularly when I was mining Bitcoin, which was only like $100 or so, and kept those coins, then I would have earned some money.

Another thing, though has always worried me.  I think Bitcoin is a bubble.  That link shows some great charts even if it is from February.  Bitcoin really has no worth to me since I can trade it only for money.  I am not a financial expert, but it’s quite controversial these days.  Many people worth listening to think that it’s a scam or something to that effect.  I am not convinced it is a scam, but nor am I willing to bet my money on it.  I know many smart friends I trust that do, but that’s the point of my blog.  Find your level of risk, and evaluate it for yourself.

Jamie Dimon of JPMorgan does not like crypto.  He talks about a few other issues in this Bloomberg article, and in all fairness, they may be more important.  He thinks that high interest rates are coming, in the 4% to 5% range sometime in the next 2 – 3 years, and his comment implies that a recession could be in that time frame; likely after 2020.

My reaction to that is to be glad I have money in Series I bonds, and taking advantage of 4 week T-Bills. I am a long term investor, so bumps in the market, in other words recessions, doesn’t impact me.

Should you buy crypto, well, don’t ask me.  On any given day I remain tempted, but I have yet to pull the trigger.

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