Personally I think Bitcoin is worthless
Prominent players in the crypto industry criticized JP Morgan CEO Jamie Dimon, an avowed Bitcoin skeptic, and accused him of not understanding the world’s No.1 cryptocurrency after that Dimon said: “I personally think Bitcoin is worthless.”
Bitcoin was trading at $ 56,999 at the time of this writing with a market cap of $ 1,074 billion.
Dimon made the comment at the Institute of International Finance (IFF) annual membership meeting, which was held virtually, according to Bloomberg. He acknowledged that JP Morgan’s clients disagree with him and that the bank will respond to those who wish to buy and sell Bitcoin.
“I don’t want to be exposed to it but I don’t care, it doesn’t make any difference to me,” Dimon said in a video clip shared by Bloomberg on Twitter. “I don’t think you should smoke cigarettes either. Our clients are adults. They do not agree. That’s what makes more markets. So if they want to have access to buy or sell Bitcoin, we can’t keep it, but we can give them legitimate access, as clean as possible.
Speaking at the IFF event on Monday, Dimon questioned the supply cap of 21 million Bitcoin. That’s what caused the biggest uproar, Decrypt reported.
When the world’s first cryptocurrency was created, it was given a cap of 21 million, meaning there will only ever be 21 million coins. This limited supply is seen as an advantage over fiat currencies as it creates a shortage, theoretically ensuring that its value remains stable over the years. This is why Bitcoin fans often call it “digital gold” and an investment in a store of value.
“How do you know it ends at $ 21 million?” Dimon asked. “Do you read all the algorithms?” Do you all believe that? I don’t know, I’ve always been skeptical about things like this.
Brian Armstrong, CEO of crypto exchange Coinbase, tweeted in response, “Yes, I read it. And then I wrote it (coding our own Bitcoin node) to make sure I understood it. He added that Dimon’s lack of engineering training would be a problem for a CEO in the future. “CEOs without a science / engineering background will be at a disadvantage in the decades to come” because “software is eating the world, changing every industry … Fortunately, the tools to learn it are available online for free, and s ‘improve and better. It is accessible to almost anyone, if they are ready to master it and at least learn the basics.
Michael Saylor, CEO of MicroStrategy and holder of over $ 2.24 billion in Bitcoin, also weighed in on Dimon’s comments, tweeting that it was essential for bankers and investors to understand crypto.
Billionaire investor Mike Novogratz, who runs Galaxy Digital and predicted bitcoin could hit $ 100,000 by the end of 2021, called Dimon’s claims about Bitcoin “sophomoric.”
“So strange. For a man who has done a brilliant job at the head of a giant bank, his answers [Bitcoin] are sophomoric and he continues to double down on them. I pray to stay open-minded all of my life.
Dimon did not hesitate in his anti-crypto stance, CNBC reported. “I always thought it would become illegal somewhere, as China made it illegal, so I think it’s a bit of madman’s gold,” he told Axios CEO , Jim VandeHei. He also said he believed “the regulators are going to regulate all of this.”
Federal Reserve Chairman Jerome Powell told a congressional hearing on September 30 that the central bank had “no intention” to ban cryptocurrencies. This has been credited as one of the reasons for Bitcoin’s sudden gain on October 1.
In August, the chairman of the Securities and Exchange Commission, Gary Gensler, compared the crypto markets to the Wild West, saying they operate mainly outside of regulations to protect investors and consumers. The asset class is rife with “fraud, scams and abuse” and needs to be watched, he said. “We have taken and will continue to take our authorities as far as they go,” Gensler said.
Listen to GHOGH with Jamarlin martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles and Biden. He talks about the risk factors for Bitcoin as an investment asset, including origin risk, speculative market structure, regulation, and environment. Are the financial markets at large in a massive speculative bubble?