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Jamie Dimon has been criticising Bitcoin since a long time ago, the J.P Morgan CEO has said that it has no real value.
In the middle of April this year Jamie Dimon, known as the CEO of one of the investment banks globally J.P. Morgan and Chase participated in an interview, on Bloomberg TV. During the interview, Jamie strongly criticized Bitcoin stating that the cryptocurrency lacks value and is a scheme.
Jamie Dimon Blasts Bitcoin
Dimon highlighted that Bitcoin is frequently associated with Fraudlent activities. These could include tax evasion, sex trafficking and money laundering leading to financial losses annually. Following Dimons remarks there was backlash on media. Privacy advocate and National Security Agency (NSA) contractor Edward Snowden shared his views on the matter.
Snowden pointed out that JPMorgan CEO appeared to have a change of heart about investing in Bitcoin. This change happened only after its value soared to record highs while previously showing hesitation. He also suggested that Dimon’s stance implied a sense of denial or disassociation. Jamie has often claimed “it doesn’t matter!”. I’m not involved!” due, to his avoidance of purchasing it.
JPMorgan, a player, in the spot Bitcoin ETF market
The CEO of JPMorgan has been critical of Bitcoin for quite some time. However his investment bank has become a participant in Blackrock spot Bitcoin exchange traded fund (ETF).
He has often expressed his scepticism about the value of cryptocurrency referring to it as a novelty. Additionally, suggesting that its main purposes are related to activities like sex trafficking, money laundering, tax evasion and funding terrorism.
During a Senate hearing, he even expressed his willingness to shut down cryptocurrency if he were the government. It is also evident that everytimne Jamie has criticized Bitcoin, he has also appreciated blockchain technology.
Personal Opinion, not Advisory
Jamie Dimon, CEO of JPMorgan, acknowledges his clients’ interest in Bitcoin but cautions against such investments. JPMorgan’s analysts warn that the price of Bitcoin will drop to $42,000 after the Bitcoin halving event in April. They did it believing that the upcoming major Ethereum upgrade and the halving event are already priced in.
While he supported the right of people to use Bitcoin, Dimon advised against getting involved with it. He believes that everything else about Bitcoin is just people trading among themselves.
However, Dimon prefers things that generate income without costing money to maintain. Since carrying Bitcoin costs money, he thinks there is a risk associated with it that needs to be addressed. If the bad use cases cannot be addressed, the government may have to shut it down. Despite this, Dimon concluded that he would not tell people what to do, as it is a free country.
Conclusion
Jamie Dimon, CEO of J.P Morgan and Chase, has been a vocal critic of Bitcoin and called it a “pet rock.” Despite this, his investment bank became a significant player in Blackrock’s spot Bitcoin ETF. He has also stated that the actual use cases for Bitcoin are sex trafficking, money laundering, tax avoidance, and terrorism financing. However, he has also appreciated blockchain technology.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
