Jamie Dimon, the CEO of JPMorgan Chase, once again criticized Bitcoin on the 17th, stating that Bitcoin has no practical use and is only used for illicit activities such as sex trafficking, tax evasion, and money laundering. He also expressed skepticism about the claim that Bitcoin’s supply limit is 21 million, suggesting that Satoshi Nakamoto will change it.
Jamie Dimon, CEO of JPMorgan Chase, has always been a strong critic of Bitcoin. During an interview with CNBC in Davos, Switzerland on Wednesday, he stated that this would be his last time discussing Bitcoin. He criticized Bitcoin for being used in activities such as sex trafficking, tax evasion, and money laundering, but also acknowledged that blockchain is real and a technology that JPMorgan Chase also utilizes.
Dimon stated that there are two types of cryptocurrencies. One type is cryptocurrencies that incorporate smart contracts, which allow users to buy and sell real estate and transfer data. He expressed support for tokenization use cases and echoed recent remarks by Larry Fink, CEO of BlackRock, who asserted that tokenization of all financial assets will be the next trend.
However, Dimon mentioned that the second type of cryptocurrency is “cryptocurrencies with no purpose at all.” He described Bitcoin as a pet rock and advised against using it. Nevertheless, he also stated that he defends people’s right to use Bitcoin, as the United States is a free country.
“Pet rock” refers to a crazy idea conceived by American businessman Gary Dahl in the 1970s. He sold inexpensive stones from Mexico in a paper-made cage, claiming it to be the perfect pet. Surprisingly, it sold millions of pieces.
When addressing the issue of Bitcoin’s limited supply, Dimon expressed doubt about the claim that Bitcoin’s supply limit is 21 million:
Dimon further stated:
Dimon’s remarks drew widespread criticism in the cryptocurrency community. On one hand, his statements were generally inaccurate, and on the other hand, he mispronounced Satoshi Nakamoto as “Satashi.” In fact, while Nakamoto created Bitcoin, he does not have control over the Bitcoin blockchain or miners.
The maximum supply of Bitcoin is 21 million, which is already hardcoded in its source code. Any modifications require consensus among miners. However, considering that miners have benefited from the current mechanism for years, they are unlikely to make adjustments.
Additionally, any changes made without achieving consensus would result in a fork in the Bitcoin blockchain, creating not just a minority consensus chain but a replacement for the main Bitcoin network. Miners must obtain majority support. Bitcoin Cash (BCH) was created in 2017 with the support of a minority of miners and remains separate from Bitcoin.
Dimon’s claim that Bitcoin will be eradicated is also inaccurate. Bitcoin’s supply can only be destroyed when all Bitcoin holders decide to transfer their funds to an irrecoverable or burnt address. Although a significant portion of Bitcoin’s supply has been sent to such addresses, the burning process will only relatively increase the value of circulating Bitcoin.
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