Apr 29, 2024

JPMorgan CEO Dimon Calls Bitcoin a Fraud and Ponzi Scheme

  • During a Bloomberg interview, Jamie Dimon called BTC and other similar cryptocurrencies “a Ponzi scheme.” This is despite JPMorgan’s participation in BlackRock’s BTC spot ETF.
  • Bitcoin price didn’t react negatively to the news after appreciating $65k after the halving.

The crypto community expressed their disappointment after the leader of one of the biggest financial institutions, JPMorgan Chase, made comments against the crypto industry. This was after CEO Jamie Dimon indicated strong skepticism about the legality and utility of Bitcoin and other cryptocurrencies.

JPMorgan CEO Names Bitcoin as a Ponzi Scheme

JPMorgan Chase CEO Jamie Dimon has once again expressed disinterest in the crypto industry after launching new attacks on Bitcoin. He made these statements on April 18th during a Bloomberg interview. This is coming from the CEO of the financial giant despite the company’s involvement as BlackRock’s spot BTC exchange-traded fund (ETF) authorized participant.

According to him, Bitcoin and other cryptocurrencies can’t fully function as currencies because they are “a Ponzi scheme.”

“Bitcoin and similar cryptocurrencies are simply not functional as currencies. If they think they’re a currency, there’s no hope for it. It’s essentially a Ponzi scheme dressed up as tech innovation,” he said.

Nevertheless, he highlighted certain parts of the crypto industry that added real value to the world, such as smart contracts and blockchain applications.

“There are elements within the broader crypto sector, such as those facilitating smart contracts and blockchain applications, that do present real value,” he added.

Massive Growth in the Crypto Market Despite JPMorgan’s Criticism

JPMorgan, especially the CEO of the company, has been a massive critic of the crypto industry, expressing several reasons why the sector poses a danger. Jamie Dimon’s hate for Bitcoin and the crypto industry dates back to 2017 when he also made comments about Bitcoin being a “fraud.”

As reported by CNBC on September 12th, 2017, Dimon said Bitcoin wasn’t a real thing and would eventually be closed down.

“It’s just not a real thing, eventually, it will be closed… I’m not saying,’ Go short bitcoin and sell $100,000 of bitcoin before it goes down. This is not advice on what to do. My daughter bought Bitcoin, it went up, and now she thinks she’s a genius,” he said during the Delivering Alpha conference presented by CNBC.

Nevertheless, despite criticisms from the CEO of the financial giant, Bitcoin has continued to grow. Back in 2017, Bitcoin’s highest price was around $20k in December. In 2024, crypto saw massive growth, reaching a new all-time high at more than $73k. Bitcoin’s market valuation has also grown to a trillion dollars, with speculations of becoming a multi-trillion dollar asset in the future.

Current Bitcoin Market Performance

At press time, Bitcoin price made a massive rebound from the $61k price level, surging by more than 2% within a day to climb towards $64,000. This comes many days after the price of the apex cryptocurrency saw a colossal crash, with some experts tying the occurrence to the Israel-Iran tensions. The massive depreciation of Bitcoin can be seen in the weekly chart, with a dip of over 5%.

The recent upward growth in Bitcoin’s price also coincides with the completion of the fourth Bitcoin halving. Indeed, Bitcoin’s price even climbed up to $65k immediately after the halving. Furthermore, there are expectations of a massive price increase post-halving.

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