In a flashback to 2017, JPMorgan CEO Jamie Dimon unleashed another savage assault on Bitcoin as markets near all-time highs. Although the Wall Street investment bank’s chairman and CEO have reaffirmed their contempt for the world’s most popular digital commodity, many of its richer customers prefer to disagree.
Dimon made the remarks on Oct 11 at an Institute of International Finance event, when he said, “I personally believe that bitcoin is worthless.”
He then admitted that the bank’s customers are still eager for the asset class and that he would continue to provide them with access to it.
“Our customers are of legal drinking age. They are in disagreement. That is what gives markets their structure. Therefore, if they want access to purchase bitcoin for themselves, we cannot custody it, but we can provide them with genuine, as clean as possible, access.”
2017 Dimon reincarnation
It wouldn’t be a bitcoin bull run without bankers criticizing the currency, and Dimon’s remarks echo those made at the last cycle’s high when he called it “a scam.”
Indeed, the investment bank’s CEO has made similar remarks almost every year since 2014, when he referred to bitcoin as a “poor store of value” while prices remained around $500. Messari Crypto creator Ryan Selkis couldn’t resist posting a litany of Dimon insults, including “fool’s gold” and “going nowhere.”
Dimon also believes Bitcoin will be “regulated to hell,” which may be a more accurate assessment given recent pressure and worry from US banking authorities. He also questioned the 21 million supply limit, posing the following question: “Do you all read the algorithms?” Are you all convinced? I’m not sure; I’ve always been skeptical about such things.”
Regardless of the chief executive’s disdain for the commodity, JPMorgan started providing passively managed bitcoin and cryptocurrency products to its institutional customers in August.
Dimon, who earns about $30 million a year, repeated earlier this month on Axios on HBO that bitcoin has “no inherent value,” adding, “I’ve always thought it’ll be declared illegal somewhere — like China made it illegal, so I feel it’s a little bit of fool’s gold.”
In a September interview with the Times of India, he acknowledged that he was not a buyer of bitcoin but added that “that does not imply it cannot double in value over the next five years.”
Bank analysts suggest investing in bitcoin
It seems as if the business and its customers are completely opposed to the CEO’s position. Earlier this year, JPMorgan strategists suggested that allocating 1% of one’s portfolio to bitcoin would act as a hedge against the volatility of traditional asset classes such as stocks, bonds, and commodities.
The bank promoted the JPM Coin in February 2019 in an attempt to establish a foothold in the crypto-asset market, but it never garnered any momentum.
Also Read: Will South Korea Postpone A Law Imposing A Tax On Cryptocurrency Gains?
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