Despite the prolonged crypto winter, cryptocurrency proponents are optimistic about the outlook for the industry. And so far this year, they’ve had plenty to be happy about.
After a dismal 2022, the price of Bitcoin, the most popular cryptocurrency in the world, has risen slightly in recent weeks.
According to data from Coingecko, Bitcoin is trading at $22,709 at the time of writing, a 15% increase from last week.
However, JPMorgan Chase CEO Jamie Dimon is still unconvinced about the crypto’s performance. In fact, it always has been.
As of September 2017, the Chief Executive Officer had maintained a antagonist position against bitcoin.
JPMorgan Chase CEO Jamie Dimon. Image: The Business Journals
Will Bitcoin “explode?”
He didn’t mince words during the time on crypto saying Bitcoin “is a fraud” and will “explode”.
Dimon said he would terminate any JPMorgan traders who engaged in cryptocurrency trading “in an instant.” He provided two reasons: “It’s against our policies, and they’re stupid, and both are dangerous.”
Fast forward, six years, the big boss of the banking giant is still around and criticizing crypto. Following market turmoil over FTX’s demise, he claims bitcoin is a hoax and reiterates his opposition to the world’s largest cryptocurrency.
Last week at the World Economic Forum in Davos, Switzerland, Dimon dismissed cryptocurrencies as having no real value.
Image: Finance Magnates
Is it a waste of time?’
In an interview he said, “I think this is all a waste of time and I don’t understand why you’re wasting your breath on it.” The CEO noted that Bitcoin is a “fashionable hoax” and a “pet rock”.
While discussing the properties of blockchain and ledger technologies that JPMorgan believes can be used as a form of currency, he expressed skepticism that Bitcoin is truly a store of value:
“How do you know Bitcoin supply will reach 21 million? Maybe it will reach 21 million, at which point Satoshi’s image will appear and laugh at all of you.
JPMorgan and Dimon have embraced blockchain technology since 2017, when JPMorgan was one of 86 companies that helped launch The Enterprise Ethereum Alliance, an open-source blockchain effort.
Why Many Support Bitcoin
Tech aficionados, libertarians wary of government monetary policy, and speculators drawn to its price swings are among those favoring bitcoin, despite the fact that banks have mostly shunned it since its inception. emerging in the wake of the financial crisis.
BTC total market cap at $443 billion on the weekend chart | Chart: TradingView.com
Inflation is still well above the US Federal Reserve’s 2% target and interest rates are expected to exceed 5%, which is why Dimon has a pessimistic outlook for the US economy this year.
Dimon said one of the biggest threats to the global economy is the conflict between Russia and Ukraine, which has disrupted supply lines and driven up global energy costs.
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