Jamie Dimon calls bitcoin a fraud but his own daughter buys it. And his own firm, JPMorgan, trades it. That's because the world's most popular cryptocurrency has surpassed other traditional assets as a store of value.
The real fraud is the Federal Reserve's U.S. dollar, which Washington D.C. continues to devalue by printing money out of thin air through a monetary policy that no one understands: "quantitative easing." The term QE is meant to deceive you because when the Fed diminishes the worth of your fiat cash, they are literally confiscating purchasing power from you.
People's wealth go towards the entity that prints the cash (the Fed).
The Federal Reserve was established in 1913. Since that time, the dollar has lost nearly 98% of its real value. If you had $1 billion in buying power back then, you'd be left with just $20 million today. In the mid-1950s, a store manager made between $9,000 to $11,000 in annual salary. But a middle-class home cost just $10,000 back then.
A Coca-Cola drink cost just 5 cents back then. Why does a single bottle cost between $1 to $2 these days? The price rose exponentially because the dollars in your wallet are no longer worth much. It's not because of lack of supply: People drink 1.9 billion Cokes per day. The price of goods have radically increased because your fiat cash aren't worth much anymore. People work hard but make less because they are paid in devaluing currency -- in perpetually diminishing buying power.
Jamie Dimon and the rest of Wall Street understand that the real fraud is the U.S. dollar but they need the marketplace to remain confident in the Fed's monetary system. Because they are holding trillions of dollars in client deposits that are ... in essence, make-believe, Monopoly cash.
Nobel Prize-winning economist Milton Friedman said there's only one cause of inflation: the printing of money. He said you shouldn't consider other reasons. A government or central bank prints money out of thin air and that's what causes higher prices, to the detriment of everyone else. That's why economists consider inflation as an indirect tax.
So what's the real fraud? A cash system that has lost 98% of its value? Or a competing digital coin that, like gold, has exponentially increased in value?