JPMorgan CEO Jamie Dimon Calls Bitcoin “Worthless”, Asserts Regulation Will Kill It

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My Clients Care About Bitcoin, I Don’t: JPMorgan CEO Jamie Dimon
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Key takeaways

  • CEO of JPMorgan Jamie Dimon takes another jab at Bitcoin, calling it “worthless.”
  • Dimon’s point that Bitcoin’s 21 million cap is uncertain has been countered by key crypto-proponents.
  • Market remains bullish, and proponents still expects Bitcoin to still reach $100,000 in Q4.

The CEO of global investment bank JPMorgan Chase, Jamie Dimon, who has a history of being bearish on Bitcoin, has once again reiterated that in his opinion, the cryptocurrency is “worthless” even if his firm provides crypto services to its clients that demand it. 

He made the statement while speaking yesterday at the Institute of International Finance (IIF) annual membership meeting which was held virtually. The CEO also hinted that he does not believe that Bitcoin’s supply cap of 21 million will hold true for the long term or is even true as he has not verified it for himself.

His comments have sparked reactions from key crypto-market players on Twitter, a major forte of cryptocurrency proponents. The CEO of the micro-blogging platform Jack Dorsey is one of the few key players who still believe that Jamie Dimon has a relevant role to play in the cryptocurrency market despite his consistently bearish stance. Dorsey stated in a tweet that he thinks “Jaime Dimon is worth more to Bitcoin…”

However, crypto-proponents have countered the hint that Dimon dropped that he did not believe Bitcoin’s supply cap is explicitly 21 million. 

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Brian Armstrong, CEO of the U.S.’s biggest cryptocurrency exchange Coinbase, opined that Jamie Dimon’s argument can easily be debunked by investing some effort to understand the Bitcoin code which was openly available for all.

Armstrong also stated that professionals who do not make an effort to understand cryptocurrencies and technology, in general, would be at a disadvantage in the long term as the world was trending towards being dominated by software.

Ari David Paul, the CIO and founder of BlockTower Capital as well as a Bitcoin proponent seemed to share a similar sentiment with Armstrong. Paul however responded with a breakdown of why the Bitcoin supply cap would hold true. 

He explains that the Bitcoin code had a 21 million limit written into it that could only be changed by the entire network of miners, which is already considerably large and diverse, reaching a consensus to alter it.

This is why he notes that the incentive structure of Bitcoin would make a change of the code highly improbable, due to the fact that Bitcoin was likely to lose all its value if the network altered its major selling point of limited supply. 

Jamie Dimon’s comments on Bitcoin are no longer a surprise to Bitcoin proponents and market participants. In the past, Dimon has stated that he expects governments to kill out the cryptocurrency with strict regulations. Analysts have also pointed out that his bearish comments have drifted towards elevating the price of Bitcoin. This is why the market remains unfazed by his latest comments.

Market sentiment for Bitcoin remains strongly bullish with most participants expecting Bitcoin to reach a price target of around $100,000 before Q4 runs out and ushers in 2022. Dimon himself has stated that despite his lack of confidence in Bitcoin, it “does not mean it can’t go 10 times in price in the next five years”.