Bitcoin is 'worthless': JPMorgan CEO Dimon

Bitcoin is 'worthless': JPMorgan CEO Dimon

Dimon likened trading the cryptocurrency to smoking cigarettes

By Breck Dumas

October 12, 2021

JPMorgan Chase CEO Jamie Dimon is no fan of Bitcoin, and he reiterated his feelings on Monday by calling the cryptocurrency "worthless" while likening trading it to smoking cigarettes.

"I personally think that Bitcoin is worthless," Dimon said while speaking at a virtual event hosted by the Institute of International Finance. "But I don't want to be a spokesman for that, I don't care. It makes no difference to me."

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"I don't think you should smoke cigarettes either," the CEO continued before conceding, "Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin – we can't custody it – but we can give them legitimate, as clean as possible access."

Dimon has been a vocal critic of Bitcoin, previously calling it a "fraud" and "fool's gold," and at one point saying that he would fire JPMorgan traders if they traded in it. But despite his strong skepticism, JPMorgan has begun offering its clients access to a half dozen cryptocurrency products, the New York Post noted.

Jamie Dimon says bitcoin is ‘worthless’

Oct 11 2021

Taylor Locke

Jamie Dimon, JPMorgan Chase chairman and CEO, isn’t a fan of bitcoin, the largest cryptocurrency by market value.

“I personally think that bitcoin is worthless,” Dimon said during an Institute of International Finance event on Monday, CNBC Pro reported.

But, “I don’t want to be a spokesperson — I don’t care. It makes no difference to me,” he said. “Our clients are adults. They disagree. That’s what makes markets. So, if they want to have access to buy yourself bitcoin, we can’t custody it but we can give them legitimate, as clean as possible, access.”

He’s held true to that statement: In February 2019, JPMorgan said it would roll out a digital currency called JPM Coin, and in October 2020, the firm created a new unit for blockchain projects. In August, it started giving its wealth management clients access to crypto funds, CNBC reported.

For his part, however, Dimon has held firm in his anti-crypto outlook.

Recently, he told Axios CEO Jim VandeHei that bitcoin has “no intrinsic value.” And although he thinks bitcoin will be around long term, “I’ve always believed it’ll be made illegal someplace, like China made it illegal, so I think it’s a little bit of fool’s gold.”

Dimon also told VandeHei that he thinks “regulators are going to regulate the hell out of it.”

He may be right: Recently, the U.S. government has had a heightened focus on regulating cryptocurrency markets. On Friday, Bloomberg reported that the Biden administration is weighing an executive order that would direct federal agencies to study and offer recommendations on the crypto market.

However, though increased regulation may happen, Federal Reserve Chairman Jerome Powell clarified at the end of September that he has no intention to ban bitcoin in the U.S.

Some financial experts contend that well-thought-out regulation would be beneficial in the U.S. “If people want crypto to become more of a mainstream asset, then I think [regulation is] a necessary first step,” Anjali Jariwala, certified financial planner, certified public accountant and founder of Fit Advisors, previously told CNBC Make It.

However, cryptocurrency supporters are wary of further regulation — they worry that certain regulatory framework may stifle crypto innovation in the U.S. and push business overseas.

Bitcoin is currently trading at around $57,501, according to CoinMarketCap, with a market value of more than $1 trillion.