JP Morgan believes that Cryptocurrencies will not Go Away
JP Morgan is one of the US banks which have not been a great fan of cryptocurrencies. In fact, the huge US bank has previously made a stance against cryptocurrencies. However, this does not mean that JP Morgan believes that cryptocurrencies will go away in the near future.
JP Morgan warns investors of the risks of cryptocurrencies
The message that JP Morgan is sending now could be a bit confusing, as on one point the bank has been warning investors of the risks of investing in cryptocurrencies, while on the other hand it has claimed that cryptocurrencies, among which bitcoin, are here to stay. The CEO of JP Morgan has long been among those who did not support cryptocurrencies, but now it seems that he approved the creation of a so-called Bitcoin Bible.
The Bitcoin Bible is actually a document that features no less than 71 pages in which the subject of cryptocurrencies is largely debated. According to the Bitcoin Bible:
“CCs are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks, and anonymity, even as the latter is under threat.”
The Bitcoin Bible also claimed that cryptocurrencies can be a point of diversification for investment portfolios, and the document also mentioned the blockchain technology, acknowledging its merits.
However, at the same time the bank had a new warning for investors, claiming that the price of bitcoin could suffer an even higher drop, of up to 50%, which can definitely lead to great losses. The bank said:
“The question is whether we go there straight away, indicated on a failure to clear 10128 and 10776, or at a later stage after a stronger countertrend rally. Above 10776 though, the door for a broader countertrend rally to 14334 if not to 16304 (76.4% on different scales) would be wide open.”
JP Morgan may be correct in saying that cryptocurrencies are here to stay for a very long time since the profit potential of these digital assets has made them very appealing to several investors. Many people have become interested in investing in cryptocurrencies for various reasons. Whether they want to boost their wealth or prepare for retirement, they add digital currencies into their investment portfolios.
However, the banks and other big financial institutions have continually reminded investors of the risk of investing in crypto. Given these assets’ volatility, investors will more likely have a high risk of losing all their money if they don’t know what to do in the first place. For example, you should refrain from spending what you can’t afford to lose to minimize your financial losses. It’s also essential not to put all your money in one cryptocurrency to avoid the impact of unexpected price fluctuations in the market.
Due to these risks, cryptocurrency investors are highly advised to work with a crypto tax advisor for professional assistance. Using their skills and expertise, they can help investors decide the most appropriate way to invest, whether to go for a coin or token or invest in stocks, ETF, and contracts. They can also help determine how much of one’s portfolio should go to crypto and how to minimize tax exposure when dealing with crypto investments.
With the increasing popularity of cryptocurrency today, there’s no apparent reason for them to go away. On top of this, many countries have started legislating the adoption of cryptocurrencies in their local financial markets.
