Jamie Dimon, the CEO of JPMorgan Chase, has been a longstanding critic of Bitcoin, often referring to it as a “pet rock.” His recent comments at the World Economic Forum in Davos, Switzerland, was a reminder of his unchanged stance despite recent developments in the digital asset space.
Jamie Dimon’s “Last Words” on Bitcoin
In a recent interview at Davos, Dimon expressed his disinterest in discussing the digital asset any further. He compared the leading digital asset with a market cap of $836B to a “pet rock” and emphasized its lack of utility, stating, “it does nothing.” This sentiment echoes his previous statements, where he called the digital currency “worthless” and a “hyped-up fraud” during its peak valuations in 2021.
Dimon’s skepticism extends to Bitcoin’s real-world applications. He pointed out that the only “real use cases” he sees for BTC are tied to criminal activities such as fraud, money laundering, tax avoidance, and sex trafficking. Despite BTC’s impressive 150% gain in the past year, trading just above $42,700, Dimon remains steadfast in his belief that the the digital asset adds little value beyond speculative trading.
JPMorgan’s Role in Bitcoin ETFs and Blockchain Projects
Interestingly, JPMorgan, led by Dimon, plays a crucial role in the digital asset space despite his dismissive attitude. The bank is one of two authorized participants for BlackRock’s Bitcoin Exchange-Traded Fund (ETF), indicating its involvement in facilitating capital flows for this emerging investment vehicle.
Dimon draws a clear line between Bitcoin and blockchain technology. While acknowledging the potential of blockchain as a real and efficient technology used by JPMorgan, he maintains that BTC is the outlier. According to Dimon, blockchain has applications in moving money and data efficiently, while Bitcoin, in his view, serves little purpose beyond being a speculative asset.
During the interview with CNBC in Davos 2024, Dimon expressed his frustration when he was asked about Bitcoin again, stating:
“This is the last time I’m talking about this with CNBC, so help me God […] Blockchain is real. It’s a technology. We use it. It’s going to move money, it’s going to move data. It’s efficient.
We’ve been talking about that for 12 years, too, and it’s very small. Bitcoin on the other hand is the pet rock […] I think we waste too many words on that.
There are crytocurrencies that do something, that might have value. And then there’s one that does nothing.”
The ETF Approval and Dimon’s Response
The recent approval of BTC ETFs by the U.S. Securities and Exchange Commission (SEC) has garnered significant attention. Despite this breakthrough, Dimon remains unswayed. When asked about the impact of traditional financial institutions entering the Bitcoin ETF market, he responded with a blunt “I don’t care” and urged to “stop talking about this,” stating:
“I don’t care so please just stop talking about this sh*t. I don’t know what Larry Fink would say about Blockchain versus crypto with utility or versus crypto like Bitcoin that does nothing […] But you know this is what makes a market. People have opinions, and this is the last time I’m ever going to state my opinion.”
Dimon’s Consistent Stand
Dimon’s dismissive attitude towards the digital asset is not a recent development. He has been a vocal critic for years, predicting that it “won’t end well” for investors. His latest remarks reiterate his belief that BTC’s value is primarily derived from speculative trading rather than any tangible utility.
Approximately $2 billion was invested in the 11 approved spot Bitcoin ETFs within the initial three days of their trading. While the digital asset market evolves with the approval of these ETFs and increased institutional interest, Dimon’s stance on BTC remains unaltered. Whether his skepticism will persist in the face of growing mainstream adoption is a question that only time will answer.
