JPMorgan CEO Says Bitcoin Worthless, Has No Intrinsic Value
JPMorgan CEO Jamie Dimon has one word to describe Bitcoin, the top cryptocurrency in the market. He said that as far as he’s concerned, it’s worthless.
Despite his personal disdain for cryptocurrency, however, he won’t stop clients if they want their hands on it. Bitcoin is currently valued at $57,000, according to CoinMarketCap. This gives it's market a capitalization of more than $1 trillion.
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JPMorgan CEO Not a Fan of Bitcoin
Dimon, the current JPMorgan Chase chairman, and CEO, obviously isn’t a fan of bitcoin. Despite its status as the largest cryptocurrency by market value, the JPMorgan CEO remains unimpressed. “I personally think that bitcoin is worthless. I don’t want to be a spokesperson — I don’t care. It makes no difference to me,” he said.
However, Dimon clarified he respects the opinion of JPMorgan’s clients when it comes to cryptocurrency.
“Our clients are adults. They disagree. That’s what makes markets. So, if they want to have access to buy yourself bitcoin, we can’t custody it but we can give them legitimately, as clean as possible, access,” he said.
While JPMorgan CEO Isn’t a Fan, JPMorgan Does Offer Cryptocurrency Services
Personal feelings aside, Dimon is okay with JPMorgan offering cryptocurrencies services to their clients. In February 2019, JPMorgan announced it would offer its own digital currency called JPM Coin.
Last year, the company created a new unit focused on blockchain projects. Blockchain is the technology that helps give cryptocurrency its uniqueness and security. This year, JPMorgan started providing wealth management clients access to crypto funds.
Despite the company’s efforts to introduce crypto services to its clients, the JPMorgan CEO remains steadfast in his belief that Bitcoin and other cryptocurrencies are worthless.
Recently, Deimon told Axios CEO Jim VandeHei that bitcoin has “no intrinsic value” even if it stays for the long term.
“I’ve always believed it’ll be made illegal someplace like China made it illegal, so I think it’s a little bit of fool’s gold,” he said. Dimon also told Vanderhei that soon, government and financial regulators will begin regulating “the hell out of it.”
US Regulators Are Already Starting Regulatory Moves
Dimon’s isn’t wrong. The US federal government is already having active discussions on how to proceed with cryptocurrency. Recently, the Securities and Exchange Commission and the Federal Market talked about regulating cryptocurrency markets.
Last Friday, reports said that President Joe Biden’s administration is weighing an executive order on cryptocurrencies. The White House would direct federal agencies to study and offer recommendations on the crypto market.
Even with increased regulation, the US is leaning towards acceptance. Last month during a Federal Reserve meeting, Chairman Jerome Powell clarified that he has no intention to ban bitcoin.
Many financial experts agree that regulations would benefit both the US and the cryptocurrency market. According to Anjali Jariwala, founder of Fit Advisors, regulation can help legitimize the crypto market.
“If people want crypto to become more of a mainstream asset, then I think it’s a necessary first step,” Jariwala said about regulations. However, cryptocurrency supporters remain wary of too much regulation.
Certain regulatory frameworks can stifle crypto innovation in the US and can cause it to move overseas.
Watch the Bloomberg Technology video reporting that JPMorgan CEO Jamie Dimon calls Bitcoin ‘worthless':
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