Jamie Dimon, a prominent Bitcoin (BTC) critic and CEO of American multinational financial giant JPMorgan Chase, has warned of impending doom for the US economy.
The warning about the US economy
After According to Jamie Dimon, the US economy may not survive the debt rebellion currently brewing in the country. It is worth noting that the US national debt has surpassed the all-time high (ATH) of over $34.1 trillion.
At a panel discussion at the Bipartisan Policy Center on Jan. 26, Jamie Dimon recalled what has changed in the economy since 1982, when the U.S. economy had a federal funds rate of around 21.5% and an inflation rate of 12%. At that time, unemployment was 10% and national debt was around 35% of gross domestic product (GDP).
Looking to today, Jamie Dimon noted that the debt-to-GDP ratio is now over 100% and is expected to reach 130% by 2035. The economy cannot yet be compared to the sports racket: “When it starts, it gets up “Giving markets around the world – by the way, because foreigners own $7 trillion in US national debt – a rebellion, and that is the worst way to do it.”
In particular, the US economy has not yet fully recovered from the consequences of the COVID-19 pandemic and the Federal Reserve has increased interest rates even further slow down the pace in the past months. He said if drastic interventions were not made, the economy could face a crash in the next decade.
The Bitcoin mix, positive for crypto
Jamie Dimon is known as a major Bitcoin critic who recently compared the leading digital currency as a pet stone that he didn't want We encourage investors to join in. Despite noting that the coin is useless, Jamie Dimon has failed to see the good in the coin, even as co-finance veterans like BlackRock CEO Larry Fink vigorously advocate for the asset.
Any major impact on the U.S. economy could benefit Bitcoin and cryptocurrencies in general, as advocates like Michael Saylor view the asset as a key component to staving off the effects of an economy on a collision course with the rocks.
Interestingly, with the advent of the spot Bitcoin ETF a better way to regulate has now been opened to give institutional investors the opportunity to get their hands on the digital currency. At the time of writing, Bitcoin is changing hands for $42,140.32, up 0.33% in the last 24 hours. The coin has recovered from its monthly lows and is poised for further growth in the near future.
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