JP Morgan CEO, one of the biggest proponents of bitcoin and cryptocurrencies “at least apparently” did not bash bitcoin this week at Davos. In an interview for CNBC, the head of one of the largest banks in America said that the only bubble he sees is the U.S national debt.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
Jamie usually called bitcoin “fraud”, a bubble that will not end well but. In 2017 when bitcoin peaked the ATH Jamie threatened to fire any JP Morgan trader that longed bitcoin because “it’s against our rules and it’s stupid.”
This is what Jamie said in September 2017 at the institutional Investor Alpha conference:
“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed. It’s just not a real thing, eventually, it will be closed.”
In September bitcoin was trading around $5,000 but 3 months later it was trading for $20,000.
Hearing Jamie at the World Economic Forum in Davos speaking as a crypto bull is impressive. Seems like cryptocurrency has invaded his mind.
When asked about bubbles he answered: “only in sovereign debt.”
Then he continued bashing the Federal Reserve and other big central banks saying:
“Right now people think central banks around the world can do whatever they want. They can’t.” Adding that “would be the big negative surprise.”
Only a real crypto bull can come with all these arguments against the Fiat-based financial system.
Bitcoin Isn’t Tulips, But Cash is Trash
Fears from an inflationary bubble with cash losing value quickly is what is pushing people to deflationary cryptocurrencies like Bitcoin. A live example of what happens when the fiat system collapses is Venezuela.
With the massive liquidity injections the Federal Reserve at best in incentivizing people to get rid of their cash as fast as possible. Pushing them to whatever alternatives like stocks, bonds, etc, just to escape the evaporating dollars.
‘Cash is trash’ is what Ray Dalio, the billionaire investor said this week at Davos.
We already talked about the bitcoin economic and political boosters in 2020 and it seems that these finance heavyweights are on the same page with us.