‘It’s dangerous’ – JPMorgan CEO issues dire Bitcoin, Ethereum and Crypto warning after massive $2 trillion price crash
Bitcoin, ethereum and other major cryptocurrencies have crashed back in the wake of a brutal “sledgehammer” by the Federal Reserve that could trigger a crash worse than 2008.
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The Bitcoin price has fallen below $20,000 this month, pushed down by a strong crypto warning from the Biden administration. Meanwhile, the ethereum price has registered an even steeper fall after its game-changing upgrade triggered a surprise warning from the US Securities and Exchange Commission (SEC).
Now JPMorgan CEO Jamie Dimon has echoed Bill Gates and Warren Buffett in labeling bitcoin, ethereum and other cryptocurrencies “decentralized Ponzi schemes.”
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JPMorgan CEO Jamie Dimon is an outspoken critic of bitcoin, ethereum and others … [+]
“I’m a big skeptic of crypto-tokens, which you call currency, like bitcoin,” Dimon said during congressional testimony this week, it was reported by Bloomberg. “They are decentralized Ponzi schemes” and “dangerous,” he added.
Earlier this year, following a 2021 crypto ban in China, executives at China’s Blockchain-based Service Network (BSN), a state-backed initiative designed to drive commercial use of blockchain technology, also called bitcoin and cryptocurrencies, declared it a Ponzi scheme. “the greatest in human history.”
Dimon’s crypto criticism echoes similar comments from Microsoft
The bitcoin and crypto market rose last year to an eye-watering $3 trillion, up from well below $1 trillion in 2020, before crashing back through 2022 — throwing the nascent crypto industry into turmoil, sending the price of some cryptocurrencies to zero and triggered an explosion of regulatory interest in the market.
“The notion that [bitcoin and crypto is] good for some is incredible,” Dimon said, pointing to cryptocurrency’s role in ransomware attacks, sex trafficking and money laundering. Dimon called bitcoin a “scam” in 2017 before walking back his comments. In 2014, he labeled bitcoin “a terrible” store of value.”
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Bitcoin price has been capped below $20,000 per bitcoin in recent weeks while … [+]
However, Dimon also said that he has accepted “properly regulated” stablecoins – cryptocurrencies that are linked to traditional currencies – as well as blockchain-based decentralized finance (DeFi) that replaces banks with algorithms have some use and declares JPMorgan as “a big user of blockchain”. .”
JPMorgan has spearheaded Wall Street’s use of crypto and blockchain, allowing wealth management clients to buy bitcoin, ethereum and a handful of other cryptocurrencies, created its own JPM Coin blockchain and cryptocurrency, and became the first major bank to enter the virtual metaverse previously this. year – which some believe could help popularize blockchain-based digital assets.
