- JP Morgan CEO said he is skeptical of the fact that Bitcoin “ends at 21 million,” which sparked a backlash from industry experts.
- Mike Novogratz, CEO at Galaxy Digital, called Dimon’s remarks “sophomoric.”
- “CEOs without a science/engineering background are going to be at a disadvantage in the coming decades,” Coinbase CEO said.
JP Morgan CEO Jamie Dimon is no stranger to denigrating Bitcoin and the crypto industry. Throughout the years, he has called Bitcoin “fraud,” “scam,” and “fool’s gold.” However, in his most recent succession of bearish statements, Dimon described Bitcoin as “worthless.”
During the annual meeting for the Institute of International Finance, JP Morgan CEO said he personally believes “Bitcoin is worthless.” Dimon also added that “no matter what,” governments will eventually regulate the industry. He said:
No matter what anyone thinks about it, the government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax.
However, what really sparked a backlash from the crypto industry was Dimon’s remarks on the Bitcoin cap. The pseudonymous inventor of the flagship cryptocurrency, Satoshi Nakamoto, has limited the total number of Bitcoins to ever be created to 21 million.
This means that the Bitcoin supply is limited, which is considered one of Bitcoin’s biggest advantages. In fact, it is for this reason that Bitcoin is referred to as “digital gold,” and a safe haven. But JP Morgan CEO stated he is skeptical of this, saying:
I’ll just challenge the group to one other thing: how do you know it ends at 21 million? You all read the algorithms? You guys all believe that? I don’t know, I’ve always been a skeptic of stuff like that.
Crypto Advocates Bite Back Against Jamie Dimon
In response to Dimon’s answer, Coinbase CEO Brian Armstrong said he has read Bitcoin algorithms and claimed he has even written it to make sure he understands it.
Yes, I read it.
And then I wrote it (coding up our own Bitcoin node) to make sure I understood it. https://t.co/yg46xyvkMq
— Brian Armstrong (@brian_armstrong) October 11, 2021
Armstrong added:
CEOs without a science/engineering background are going to be at a disadvantage in the coming decades I think. Honestly, probably politicians, journalists, and many other roles. Software is eating the world, changing every industry.
Mike Novogratz, the CEO of Galaxy Digital, seemed perplexed by the JP Morgan CEO’s “sophomoric” remarks around Bitcoin. He tweeted:
So strange. For a man who has done a brilliant job running a giant bank, his answers around BTC are sophomoric and he keeps doubling down on them. I pray I stay open minded my whole life.
Microstrategy CEO Michael Saylor also commented on Dimon’s recent statements, saying that “the critical question faced by bankers and investors worldwide is ‘Do you understand Bitcoin?'”
The critical question faced by bankers and investors worldwide is “Do you understand #Bitcoin?” https://t.co/FdQcqXoZ02
— Michael Saylor⚡️ (@saylor) October 11, 2021
Nevertheless, despite Dimon’s unfriendly behavior towards the crypto industry, JP Morgan has proceeded to offer crypto to traders. In March, JPMorgan filed for a “cryptocurrency basket,” featuring crypto-exposed companies like MicroStrategy, Square, and Nvidia, to offer certain customers exposure to crypto.
Notably, in April, the bank even took steps to offer crypto to retail traders, becoming the first major bank to do so.
