Bitcoin is worthless, says JPMorgan boss

Jamie Dimon, the Chief Executive Officer of JPMorgan, says Bitcoin which is currently worth over a trillion dollars, is worthless. He made this comment at an event hosted by the Institute of International Finance.

The CEO at the event, said, “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. Our clients are adults. They disagree. That’s what makes markets. So, if they want to have access to buy bitcoin, we can’t custody it but we can give them legitimate, as clean as possible, access.”

This comment comes after JPMorgan’s research led by Nikolaos Panigirtzoglou, made a bold long-term price target for Bitcoin, stating that the crypto-asset could rally as high as $146,000 as it competes with gold as an “alternative” currency.

Panigirtzoglou said, “A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term. However, convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multi-year process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”

Dimon has in the past made negative statements about bitcoin from as far as 2014 when he said that bitcoin is a terrible store of value. Also in 2017, he stated that the asset class was a fraud. In 2020, he mentioned that the asset class is, not my cup of tea.

He recently called for strict regulation for Bitcoin, urging the United States to follow China in banning cryptocurrencies. However, Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission boss Gary Gensler, have both said they have no intention to ban cryptocurrencies in the U.S.

Although the CEO is not a big fan of bitcoin, he appears to be more supportive of the underlying blockchain technology that served as the foundation for digital currencies like bitcoin.

JPMorgan created its own digital currency, in 2019 called JPMCoin, and in October 2020, the firm created a new unit for blockchain projects. In August 2021, it started giving its wealth management clients access to crypto funds