Bitcoin Is a Ponzi Scheme, Says JP Morgan’s Jamie Dimon

Jamie Dimon, CEO of JPMorgan Chase, has once again sparked controversy with his strong denouncement of Bitcoin (BTC).

In a recent interview, he labeled the leading cryptocurrency a “public decentralized Ponzi scheme.” This statement reiterates his long-standing skepticism against Bitcoin.

Ongoing Bitcoin Skepticism Since 2017

Dimon’s harsh criticism stems from his belief that Bitcoin lacks intrinsic value. Therefore, he sees that Bitcoin cannot function as a viable currency.

“If you mean crypto like Bitcoin, I’ve always said it’s a fraud,” he stated during the Bloomberg interview.

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This isn’t the first time Jamie Dimon has expressed such a view. He gained notoriety in 2017 for publicly denouncing Bitcoin as a “fraud” that he believed would eventually “blow up.”

Moreover, during a US Senate hearing in late 2023, Dimon stated that he would “close down” crypto if he were the government.

Despite this, Dimon acknowledges the potential of blockchain — the technology underpinning cryptocurrencies. He recognizes the value of features like smart contracts.

“To the extent crypto is accessing certain blockchain things, that might have some value,” he stated.

Smart contracts are codes in blockchain that serve as self-executing agreements and automatically trigger actions when predetermined conditions are met. Their potential use cases in areas like supply chain management, financial transactions, and property ownership add value for Dimon.

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Jamie Dimon’s comments highlight the ongoing divide in perceptions of Bitcoin. Cryptocurrency enthusiasts laud its decentralized nature, potential as an inflation hedge, and its role in a new financial sector. Opponents, however, view the extreme volatility of Bitcoin and its peers and past instances of fraud and exploitation as deal-breakers.