JPMorgan CEO Compares Crypto to “Pet Rocks”

During a Tuesday appearance on CNBC, JPMorgan CEO Jamie Dimon called cryptocurrencies “a complete sideshow,” comparing the novel asset to pet rocks.

“Crypto is a complete sideshow. You guys spend too much time on it. Tokens are like pet rocks.”

The banker has pointed to the fact that Bitcoin is widely used for ransomware, tax avoidance, money laundering and other nefarious activities.

Blockchain, not Bitcoin

However, this criticism does not mean that smart contracts or blockchain are not real, Dimon says.

The head of America’s largest bank has been rather bullish on blockchain technology for quite a while. In October, he praised its ability to “disintermediate” different parts of banking despite calling Bitcoin “dirty and expensive.”

The Fed hiking interest rates to 5%

Cryptocurrency skeptics feel vindicated this year, with cryptocurrencies losing most of their value during the ongoing crypto winter. The Federal Reserve’s aggressive monetary policy, which has battered risky assets, is believed to be one of the key reasons behind crypto’s disastrous performance.

In the interview, Dimon predicts that the Fed will hike the benchmark interest rate to 5% before taking a pause.

In October, he predicted that U.S. stocks could see another 30% drawdown.

The JPMorgan boss claims that the U.S. economy is the strongest in the world right now, but he still expects a mild recession in 2023. The American banking system is also “unbelievably sound,” Dimon claims.