The star investor has openly admitted on more than one occasion in the past that JPMorgan boss Jamie Dimon is not a fan of Bitcoin. The approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) does not change this. Dimon recently repeated his assessment at the World Economic Forum.
• Jamie Dimon not a fan of Bitcoin
• Difference between Bitcoin and Blockchain Technology
• Dimon doesn’t want to dictate anything to anyone
JPMorgan boss Jamie Dimon is an open critic of the oldest cryptocurrency, Bitcoin. The bank boss never tires of emphasizing that the cyber currency is nothing but a “bloated fraud,” as he once said in an interview with CNBC. At the time, the FTX scandal was on everyone’s lips and the company’s leader sharply criticized the regulatory authorities. These should have better protected the investors in the failed crypto exchange. Dimon said on the Fox Business show “Morning with Maria”: “Some kind of regulatory framework should have been put in place immediately so that there is some investor protection.”
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A lot has happened in the crypto sector since then. In a historic step, the US Securities and Exchange Commission (SEC) recently approved several Bitcoin spot ETFs, which now make it much easier for investors to invest in the cryptocurrency without having to hold Bitcoin themselves. Against this background, it does not seem unlikely that other cyber currencies such as Ethereum will also be approved for such spot ETFs.
Jamie Dimon asked again about Bitcoin after ETF approval
A team of moderators from CNBC didn’t miss the opportunity to ask the JPMorgan boss again about his opinion on Bitcoin at the World Economic Forum in Davos, especially since it is quite possible that JPMorgan’s own customers are interested in just such Bitcoin. ETFs could have.
Dimon emphasized the importance of blockchain in his answer: “Blockchain is real. It is a technology. We use it, it will move money and data, it is efficient. We have been talking about it for twelve years […]”.
Two types of cryptocurrencies
In his opinion, however, there are two different types of cryptocurrencies: “There are cryptocurrencies that are able to actually do something at some point. If you think about the smart contracts that are anchored in the cryptocurrency. We can use them to “Buying real estate or moving data could have value. The tokenization of something that you do something with.”
On the other hand, there are also cryptocurrencies “that do nothing”. For Dimon, this clearly includes Bitcoin. There are also use cases for Bitcoin, as Dimon lists: “Money laundering, fraud, sex trafficking and tax avoidance. These are real use cases. And 50 to 100 billion US dollars are used for these purposes every year.”
Dimon advises against investing in Bitcoin – but doesn’t want to prescribe anything
Nevertheless, the JPMorgan boss also said: “I defend your right to Bitcoin. You know, it’s okay. I’m not going to tell you what to do. However, my personal advice is, stay away. But we live in a free country and I don’t want to tell any of you what to do.” He also made it clear that he did not want to comment further on the subject of Bitcoin.
When the moderator asked what Dimon said about the fact that other large asset managers such as BlackRock and Fidelity had decided to launch their own Bitcoin ETFs, the JPMorgan boss said briefly: “I don’t care. Please stop talking about this shit.” . Furthermore, Dimon doesn’t know what those same companies would say about the difference between blockchains that are actually able to do something and Bitcoin, which does nothing. In the end, these differences in how the market is structured are due to people with different opinions.
Bitcoin is not comparable to gold
When asked that there were also gold funds, Dimon replied that the difference to Bitcoin was that the supply was limited. According to the underlying white paper, the number of Bitcoins is limited to 21 million digital coins, but in Dimon’s opinion there is no guarantee that this is actually the case. Nobody could predict what would happen when the 21 million Bitcoins were actually mined. He could also imagine that Bitcoin inventor Satoshi Nakamoto would appear laughing when all the coins had been spent and delete all the Bitcoins. Ultimately there are no guarantees.
Dimon added that if authorities don’t find a solution to Bitcoin’s “bad use cases,” they will ultimately have to pull the plug on the cryptocurrency.
Editorial team finanzen.net
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