JPMorgan Chase CEO Jamie Dimon simply can’t resist commenting something negative about Bitcoin. In an interview with Bloomberg this week, Dimon said while blockchain and stablecoins “can be real,” the leading cryptocurrency is “worthless,” and it is going to be regulated.
“No matter what anyone thinks about it, the government is going to regulate it,” said Dimon during the conversation held virtually by the Institute of International Finance (IIF). According to him, the government will regulate the crypto industry for tax, anti-money laundering purposes, and the Bank Secrecy Act.
The billionaire CEO reiterated that these are just his views, which are different from the bank and its clients, and that he remains skeptical.
“I personally think that bitcoin is worthless… It makes no difference to me.”
“I don’t think you should smoke cigarettes either.”
I personally think Jamie should put on a short on Bitcoin on CME to provide liquidity into contango and then leave it to the people to decide
Put up or shut up ser https://t.co/ueeaO2QUvC
— Zhu Su (@zhusu) October 11, 2021
Recently, the banking giant started allowing its wealth management clients access to cryptocurrency funds, but that is because “our clients are adults” and “they disagree,” with him, said Dimon.
“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.”
Late last month, Dimon had said that he didn’t really care about Bitcoin but that it could easily “go 10 times in price in the next five years.”
Bitcoin is currently trading above $57,000, up more than 30% this month. The trillion-dollar cryptocurrency is actually worth double that of JPMorgan, whose market cap is just under $500 million.
The bank’s shares (JPM) are currently trading at $166.64 after hitting an all-time high at $171.46 last week but only up about 104% from its March low and 32% YTD. Meanwhile, Bitcoin is up 1,400% from its March low and recording 96% gains this year.
Dimon first called Bitcoin a “fraud” in 2014 — though later he said he regretted the statement — when the crypto asset was trading at just about $800.
dude owns a bank, says he doesn’t believe in basic math. https://t.co/39jS5OBpO4
— :~# i_am_nomad (@IamNomad) October 12, 2021
Unlike Dimon, billionaire investor Bill Miller is very bullish on Bitcoin, which he said is “a lot less risky at $43,000 than it was at $300,” because it is “now established, huge amounts of venture-capital money have gone into it, and all the big banks are getting involved.”
Ethereum / USD
Volume 17.03 b
Circulating 117.9 m
Market Cap 404.16 b
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Miller Value Partners boss, who bought Bitcoin at an average price of $500, thinks of it as digital gold. The key here is “the demand for this particular type of protection against financial catastrophe,” Miller said.
Bitcoin could surge 10x in value if investors accept it as a safe haven asset, he added while suggesting that even then, it would only be the start of the crypto realizing its potential.
He’s actually “willing to go over the waterfall with this (Bitcoin) one too,” just like he did on Amazon stock when the dot-com bubble burst.
Besides Bitcoin, Miller also talked in favor of Coinbase, which he said: “could be the default position for growth investors.” According to him, the crypto exchange, which currently has a $67 billion market cap, could easily have a $1 trillion market cap as a “disruptive company in a rapidly growing, changing industry,” unlike Tesla, which has a $750 billion market cap in a “mature industry that is never gonna grow very fast, just because it hoovered up the technological change.”