Wall Street divided on cryptocurrencies

The House of Morgan is divided over bitcoin.

While JPMorgan chief Jamie Dimon is so anti crypto that he even belittled his daughter’s trading bitcoin and told his traders if he found them trading cryptos they would be fired for stupidity.

On Thursday Morgan Stanley Chief Executive James Gorman argued that the cryptocurrency phenomenon is “more than just a fad.”

Gorman spoke of the potential upside aspects of a digital currency. “The privacy protections it gives people is interesting because what it says to the central banking system about controlling that.”

Earlier this week other Wall Street bold face names came out to say bitcoin was a “bubble”.

Billionaire Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, said cryptocurrencies like bitcoin meet his firm’s criteria for a market bubble, since — in his words — they don’t serve as a store of value due to extreme volatility. “Bitcoin is a highly speculative market,” he said on CNBC. “Bitcoin is a bubble.”

Former Fortress Investment Group manager Mike Novogratz called bitcoin “the largest bubble of our lifetimes.” However, Novogratz is raising a fund to launch a $500 million fund that will invest in cryptocurrencies.

I have noticed that anytime someone wants to denigrate an investment, they say “it’s a bubble,” and then drops the mic, since that ends the conversation.

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