JPMorgan Chase CEO Jamie Dimon once again criticized Bitcoin on the 17th, stating that Bitcoin has no practical use and its applications include sex trades, tax evasion, and money laundering. He also expressed skepticism about the claim that the supply of Bitcoin is limited to 21 million coins, stating that Satoshi Nakamoto will change the supply limit.
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 sex trades, tax evasion, money laundering, and other purposes. However, he also acknowledged that blockchain is real and a technology that JPMorgan Chase adopts.
Dimon mentioned that there are two types of cryptocurrencies. One type is cryptocurrencies with smart contracts that allow users to buy and sell real estate and transfer data. This type may have value, and he expressed support for tokenized use cases. This echoes recent statements by Larry Fink, CEO of BlackRock, who asserted that tokenization of all financial assets will be the next trend.
However, Dimon referred to the second type of cryptocurrency as “cryptocurrencies with no use 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.
The term “pet rock” refers to a crazy idea conceived by American businessman Gary Dahl in the 1970s. He packaged cheap stones from Mexico in a paper-made cage and sold them, claiming it to be a perfect pet. Surprisingly, it sold millions of pieces.
When it comes to the issue of limited Bitcoin supply, Dimon expressed doubts about the claim that the supply limit is 21 million coins. Dimon further stated:
Dimon’s remarks faced widespread criticism in the crypto community. On one hand, his statements were generally inaccurate, and on the other hand, he mispronounced Satoshi Nakamoto as “Satashi.” In fact, although Nakamoto created Bitcoin, he does not have control over the Bitcoin blockchain or miners.
The maximum supply of Bitcoin is 21 million coins, which is currently hardcoded in its source code. Any modifications would require consensus among miners. However, given that miners have been operating under the current incentive model for years, it is unlikely that they will make adjustments.
Furthermore, any changes that do not achieve consensus would result in a blockchain fork, splitting the Bitcoin blockchain into two chains. To replace the main Bitcoin network, rather than just creating a minority consensus chain, miners must obtain majority support. Bitcoin Cash (BCH) was created by a minority of miners’ support in 2017 and remains separate from Bitcoin to this day.
Dimon’s claim that Bitcoin will be eliminated is also inaccurate. Bitcoin supply can only be destroyed when all Bitcoin holders decide to transfer funds to an unrecoverable address or a burn address. Although a significant portion of the Bitcoin supply has been sent to relevant addresses, burning a portion would only increase the relative value of the circulating Bitcoin.
Related Reports
JPMorgan Chase questions the revival of DeFi/NFT as an illusion and Ethereum’s lagging progress.
Is Binance’s settlement a good thing? JPMorgan Chase: It cuts off the most terrifying black swan in the market.
JPMorgan Chase’s blockchain is seen as inferior even to Ponzi schemes in the eyes of retail investors.