JPMorgan CEO Dimon Calls Bitcoin a “Hyped-up Fraud”

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According to him, the entire cryptocurrency industry is going to zero eventually.

Jamie Dimon, American billionaire and CEO of JPMorgan Chase, has once again swiped at Bitcoin and the broader cryptocurrency scene, calling the firstborn crypto a “hyped-up fraud” in his latest remarks. These comments come a few days after Dimon called the entire crypto industry a “decentralized Ponzi scheme.”

“I think all that has been a waste of time, and why you guys waste any breath in it is totally beyond me […] Bitcoin itself is a hyped-up fraud, it’s a pet rock,” Dimon said in his latest remarks while speaking at a CNBC Squawk Box episode today. According to him, the entire crypto industry will eventually reduce to zero.

Andrew Sorkin, one of the interviewers, highlighted the growing institutional adoption rate in the crypto industry, as top firms such as BlackRock and Morgan Stanley recently showed a massive interest in Bitcoin. Sorkin sought Dimon’s opinion on this growing trend.

In response, Dimon pointed out that blockchain is different from cryptocurrencies, stating his approval of the technology as it is applied in several use cases, including the movement of information and money, and intra-day repo exercises. “That’s a technology ledger that we think will be deployable,” he said.

Furthermore, Bitcoin’s impressive features that make it stand out as a store of value were highlighted, such as its immutability and scarcity, as its maximum supply sits at 21 million. Notably, the last BTC is expected to be mined around 2140.

“How do you know it’s going to stop at 21 million,” Dimon asked in response, “everyone says that but maybe it’s going to get to 21 million and Satoshi is going to come up and laugh at you all. And by then, Satoshi would have taken out billions of dollars.”

“Bitcoin itself is a hyped-up fraud,” says @jpmorgan CEO Jamie Dimon. “Crypto is a decentralized Ponzi scheme…It’s a pet rock.” pic.twitter.com/9KQfckty8f

— Squawk Box (@SquawkCNBC) January 19, 2023

Additionally, when asked about his reaction to the recent FTX implosion, Dimon noted that he is not surprised, reiterating his stance that the entire crypto industry is a “decentralized Ponzi scheme.”

JPMorgan Has a More Positive Outlook of Bitcoin 

Despite Dimon’s open criticism of Bitcoin, JPMorgan, as an institution, has shown a more positive reception of the asset class. Last November, the financial services’ trademark application to offer a cryptocurrency wallet through the trademark “J.P. Morgan Wallet” was approved by the USPTO.

In September of last year, the bank estimated Bitcoin’s projected excess returns to a rate of 38.1%, the highest for any asset class. Reports from August 2021 revealed that JPMorgan had started giving its clients exposure to Bitcoin and cryptocurrencies through investment products from NYDIG, Grayscale, and Osprey Funds. The firm also remains bullish on cryptocurrencies.

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