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 a type of money market fund and properly regulated. 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
What are the benefits of a Gold IRA?
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It will be tax-deferred up until the time you withdraw it. You control how much you take each year. There are many types to choose from when it comes to IRAs. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. To avoid missing a payment, direct debits can be set up.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even in economic turmoil, gold prices tends to remain relatively stable. Gold is a good option for protecting your savings from inflation.
What amount should I invest in my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule states that income taxes must be paid before you can withdraw earnings. Withdrawing your earnings will result in you paying taxes. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's also say that you earn $10,000 per annum after contributing. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. You can only take out what you originally contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Can the government seize your gold?
Because you have it, the government can't take it. It's yours, and you earned it by working hard. It belongs exclusively to you. This rule may not apply to all cases. You could lose your gold if convicted of fraud against a federal government agency. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if taxes are not paid, gold is still your property.
Can I buy gold using my self-directed IRA
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contract are financial instruments that depend on the gold price. You can speculate on future prices, but not own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, decide if it is possible to withdraw funds from an IRA. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once you have completed these calculations, you need to open your brokerage account. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. However, a debit card is better than a card. This will save you unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. You will need to weigh each one before making a decision.
Bullion bars are easier to store than individual coins. But you will have to count each coin separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to store their coins in a vault. Some people prefer to store their coins safely in a vault. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Should You Open a Precious Metal IRA?
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There is no way to recover money that you have invested in precious metals. This includes all investments that are lost to theft, fire, flood, or other causes.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Do not open an account unless you're ready to retire. Keep your eyes open for the future.
What is the best precious metal to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. While gold is considered a safe investment option, it can also be a risky choice. You might not want to invest in gold if you're looking for quick returns. If you have the patience to wait, then you might consider investing in silver.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
- 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)
- 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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
How to Buy Physical Gold in An IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Alternative options include buying physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It is easier to view how much gold has been stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You have less risk of theft when investing in stocks.
However, there are disadvantages. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com has more information about how to buy gold in an IRA.
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